EWJ - DFJ: Japan Is Different This Time Consider Buying Small Caps On Dips

2024-03-18 20:32:44 ET

Summary

• The WisdomTree Japan SmallCap Dividend Fund ETF provides exposure to Japanese small-cap companies that pay regular dividends.
• DFJ has consistently distributed dividends around 2.5% over the last five years, indicating sustainability and potential for improvement.
• DFJ has outperformed the MSCI Japan Small Cap Index and shows potential for further growth in the small-cap sector of the Japanese market.

DFJ overview

The WisdomTree Japan SmallCap Dividend Fund ETF (DFJ) is an efficient way for investors to get exposure to listed Japanese small-cap companies that pay regular dividends. They tend to be companies more linked to local economic growth in Japan compared to some of the larger export orientated listed companies. Those wishing to learn more about the index this ETF tracks, can visit the DFJ website here .

Over the last five years, small caps have underperformed their larger counterparts. I shall explore further down why this represents an opportunity via DFJ....

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