WisdomTree Japan SmallCap Dividend Fund

DFJ

Market cap $317M

The Nikkei 225 falls to 49,303 as rate-hike odds for December 19 approach 80%. Electronics, pharma, and industrials lead declines as liquidity expectations tighten.

The WisdomTree Japan SmallCap Dividend Fund ETF invests in Japanese stocks paying a dividend, principally with a market capitalization below $2 billion. The ETF is heavily overweight in cyclical sectors, which partially explains its attractive trailing earnings yield of about 8.15%. The IMF only sees Japanese GDP growth at 0.6% in 2026, although this may increase thanks to fiscal stimulus, boosting DFJ's cyclical holdings.

Nikkei closes at 51,063, extending gains for a second session. Manufacturing confidence hits a four-year high as exports strengthen.

Making its debut on 06/16/2006, smart beta exchange traded fund WisdomTree Japan SmallCap Dividend ETF (DFJ) provides investors broad exposure to the Asia-Pacific (Developed) ETFs category of the market.

Solid growth and ongoing shareholder-friendly reforms are driving Japanese equity gains, keeping us overweight. We see the AI theme playing out globally.

Japanese small caps remain undervalued, with low PBRs and discounted PEs versus large caps. Corporate governance reforms are catalyzing price appreciation, especially in cash-rich, low PBR companies, with more financial optimization ahead. Activist investors and legal support are driving capital allocation improvements, but buybacks and higher payout ratios are still underutilized.

Berkshire's higher stakes in Mitsubishi and Mitsui spark a rally in Japan's trading houses. ETFs like FJP, EWJV, DFJ, SCJ, FLJH are likely to benefit.

Making its debut on 06/16/2006, smart beta exchange traded fund WisdomTree Japan SmallCap Dividend ETF (DFJ) provides investors broad exposure to the Asia-Pacific (Developed) ETFs category of the market.

Among APAC equity markets, Australia has a higher beta to oil prices while India, Indonesia and Thailand have lower betas. Domestic political uncertainties have been one main reason for the decoupling trend seen in Indonesia and Thailand.

Launched on 06/16/2006, the WisdomTree Japan SmallCap Dividend ETF (DFJ) is a smart beta exchange traded fund offering broad exposure to the Asia-Pacific (Developed) ETFs category of the market.