SCJ vs. DFJ

Last updated Jun 3, 2026

SCJ (iShares MSCI Japan Small Cap ETF) and DFJ (WisdomTree Japan SmallCap Dividend Fund) are both Japan Equities funds - SCJ tracks the MSCI Japan Small Cap Index while DFJ tracks the WisdomTree Japan SmallCap Dividend Index. Both are passively managed. Over the past 10 years, SCJ returned 7.51%/yr vs 8.75%/yr for DFJ. Their correlation of 0.92 suggests significant overlap in exposure. SCJ charges 0.49%/yr vs 0.58%/yr for DFJ.

Performance

SCJ vs. DFJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Japan Small Cap ETF (SCJ) and WisdomTree Japan SmallCap Dividend Fund (DFJ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCJ achieves a 13.94% return, which is significantly higher than DFJ's 9.57% return. Over the past 10 years, SCJ has underperformed DFJ with an annualized return of 7.51%, while DFJ has yielded a comparatively higher 8.75% annualized return.

SCJ

• 1D: 0.44%
• 1M: 4.20%
• YTD: 13.94%
• 6M: 15.93%
• 1Y: 28.52%
• 3Y*: 17.56%
• 5Y*: 7.58%
• 10Y*: 7.51%

DFJ

• 1D: 0.84%
• 1M: 2.11%
• YTD: 9.57%
• 6M: 13.00%
• 1Y: 26.25%
• 3Y*: 19.17%
• 5Y*: 9.96%
• 10Y*: 8.75%

*Multi-year figures are annualized to reflect compound growth (CAGR)

SCJ vs. DFJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCJ iShares MSCI Japan Small Cap ETF	13.94%	29.58%	3.41%	13.22%	-12.75%	-2.95%	7.46%	16.16%	-17.17%	31.61%
DFJ WisdomTree Japan SmallCap Dividend Fund	9.57%	31.90%	2.80%	21.81%	-9.00%	0.38%	1.29%	16.98%	-18.53%	32.14%

Correlation

The correlation between SCJ and DFJ is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Dec 28, 2007	0.92

The correlation between SCJ and DFJ has been stable across timeframes, ranging from 0.92 to 0.96 - a consistent structural relationship.

SCJ vs. DFJ - Sectors Allocation Comparison

Sectors	SCJ	DFJ
Industrials	28.9%	27.0%
Consumer Cyclical	14.6%	16.1%
Technology	11.2%	12.6%
Basic Materials	10.1%	13.3%
Financial Services	9.7%	13.3%
Real Estate	8.4%	2.9%
Consumer Defensive	6.8%	7.1%
Healthcare	4.4%	4.1%
Communication Services	2.9%	1.5%
Utilities	2.1%	1.6%
Energy	0.8%	0.6%

Return for Risk

SCJ vs. DFJ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SCJ

SCJ Risk / Return Rank: 51
SCJ Sharpe Ratio Rank: 51
SCJ Sortino Ratio Rank: 52
SCJ Omega Ratio Rank: 50
SCJ Calmar Ratio Rank: 50
SCJ Martin Ratio Rank: 50

DFJ

DFJ Risk / Return Rank: 44
DFJ Sharpe Ratio Rank: 46
DFJ Sortino Ratio Rank: 46
DFJ Omega Ratio Rank: 44
DFJ Calmar Ratio Rank: 43
DFJ Martin Ratio Rank: 39

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SCJ vs. DFJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Japan Small Cap ETF (SCJ) and WisdomTree Japan SmallCap Dividend Fund (DFJ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	SCJ	DFJ	Difference
Sharpe ratio Return per unit of total volatility	1.78	1.61	+0.17
Sortino ratio Return per unit of downside risk	2.54	2.30	+0.24
Omega ratio Gain probability vs. loss probability	1.32	1.28	+0.03
Calmar ratio Return relative to maximum drawdown	2.51	2.17	+0.34
Martin ratio Return relative to average drawdown	8.51	6.35	+2.16
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SCJ vs. DFJ - Sharpe Ratio Comparison

The current SCJ Sharpe Ratio is 1.78, which is comparable to the DFJ Sharpe Ratio of 1.61. The chart below compares the historical Sharpe Ratios of SCJ and DFJ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	SCJ	DFJ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.78	1.61	+0.17
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.48	0.63	-0.15
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.46	0.52	-0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.30	0.31	-0.01

Drawdowns

SCJ vs. DFJ - Drawdown Comparison

The maximum SCJ drawdown since its inception was -43.52%, smaller than the maximum DFJ drawdown of -46.00%. Use the drawdown chart below to compare losses from any high point for SCJ and DFJ.

Drawdown Indicators

	SCJ	DFJ	Difference
Max Drawdown Largest peak-to-trough decline	-43.52%	-46.00%	+2.48%
Max Drawdown (1Y) Largest decline over 1 year	-12.17%	-13.03%	+0.86%
Max Drawdown (3Y) Largest decline over 3 years	-12.43%	-13.03%	+0.60%
Max Drawdown (5Y) Largest decline over 5 years	-33.25%	-29.71%	-3.54%
Max Drawdown (10Y) Largest decline over 10 years	-38.87%	-40.02%	+1.15%
Current Drawdown Current decline from peak	-2.17%	-6.48%	+4.31%
Average Drawdown Average peak-to-trough decline	-10.38%	-11.15%	+0.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.59%	4.46%	-0.87%

Volatility

SCJ vs. DFJ - Volatility Comparison

iShares MSCI Japan Small Cap ETF (SCJ) and WisdomTree Japan SmallCap Dividend Fund (DFJ) have volatilities of 4.08% and 4.14%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCJ	DFJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.08%	4.14%	-0.06%
Volatility (6M) Calculated over the trailing 6-month period	13.14%	13.47%	-0.33%
Volatility (1Y) Calculated over the trailing 1-year period	16.18%	16.45%	-0.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.81%	15.89%	-0.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.29%	16.96%	-0.67%

SCJ vs. DFJ - Expense Ratio Comparison

SCJ has a 0.49% expense ratio, which is lower than DFJ's 0.58% expense ratio.

Dividends

SCJ vs. DFJ - Dividend Comparison

SCJ's dividend yield for the trailing twelve months is around 2.76%, more than DFJ's 2.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFJ WisdomTree Japan SmallCap Dividend Fund	2.43%	2.68%	2.46%	2.43%	2.62%	2.07%	2.59%	2.24%	1.89%	1.60%	1.76%	1.23%
SCJ iShares MSCI Japan Small Cap ETF	2.76%	3.14%	1.79%	1.99%	1.18%	1.87%	0.89%	1.85%	1.44%	1.45%	2.73%	1.53%

Frequently Asked Questions

Can I hold both SCJ and DFJ in my portfolio?

With a correlation of 0.93, SCJ and DFJ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, SCJ or DFJ?

DFJ has higher volatility (4.14%) compared to SCJ (4.08%). In terms of maximum drawdown, SCJ dropped -43.52% vs DFJ's -46.00%.

Which ETF is better, SCJ or DFJ?

On 10-year performance, DFJ leads with 8.75% vs 7.51% for SCJ. On fees, SCJ is cheaper at 0.49% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCJ or DFJ?

Over the 10-year period, DFJ has performed better with a 8.75% return vs 7.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCJ or DFJ?

SCJ is cheaper with a 0.49% expense ratio, compared with 0.58% for DFJ.

Which ETF pays a higher dividend yield, SCJ or DFJ?

SCJ has the higher dividend yield at 2.76%, compared with 2.43% for DFJ.

What is the main difference between SCJ and DFJ?

SCJ tracks MSCI Japan Small Cap Index, while DFJ tracks WisdomTree Japan SmallCap Dividend Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.49% for SCJ and 0.58% for DFJ.

Which has better risk-adjusted returns?

SCJ currently has the higher Sharpe Ratio (1.78 vs 1.61), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.