SCJ vs. RAYJ

Last updated Jun 24, 2026

SCJ (iShares MSCI Japan Small Cap ETF) and RAYJ (Rayliant SMDAM Japan Equity ETF) are both Japan Equities funds. SCJ is passively managed, while RAYJ is actively managed. Over the past year, SCJ returned 29.99% vs 36.81% for RAYJ. A 0.75 correlation means they provide meaningful diversification when combined. SCJ charges 0.49%/yr vs 0.72%/yr for RAYJ.

Performance

SCJ vs. RAYJ - Performance Comparison

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

Returns By Period

In the year-to-date period, SCJ achieves a 14.43% return, which is significantly lower than RAYJ's 25.68% return.

SCJ

• 1D: -1.98%
• 1M: 0.36%
• YTD: 14.43%
• 6M: 14.21%
• 1Y: 29.99%
• 3Y*: 18.07%
• 5Y*: 7.56%
• 10Y*: 7.94%

RAYJ

• 1D: -4.99%
• 1M: 2.97%
• YTD: 25.68%
• 6M: 25.54%
• 1Y: 36.81%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SCJ vs. RAYJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SCJ iShares MSCI Japan Small Cap ETF	14.43%	29.58%	0.36%
RAYJ Rayliant SMDAM Japan Equity ETF	25.68%	20.16%	10.53%

Correlation

The correlation between SCJ and RAYJ is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.70
Correlation (All Time) Calculated using the full available price history since Apr 4, 2024	0.75

The correlation between SCJ and RAYJ has been stable across timeframes, ranging from 0.70 to 0.75 - a consistent structural relationship.

SCJ vs. RAYJ - Sectors Allocation Comparison

Sectors	SCJ	RAYJ
Industrials	27.0%	29.6%
Consumer Cyclical	15.2%	23.8%
Technology	13.9%	23.2%
Financial Services	10.0%	6.6%
Basic Materials	9.3%	7.5%
Real Estate	7.7%	2.8%
Consumer Defensive	6.3%	1.5%
Healthcare	5.3%	3.5%
Communication Services	2.8%	1.5%
Utilities	1.9%	-
Energy	0.7%	-

Return for Risk

SCJ vs. RAYJ — Risk / Return Rank

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

SCJ

SCJ Risk / Return Rank: 55
SCJ Sharpe Ratio Rank: 57
SCJ Sortino Ratio Rank: 57
SCJ Omega Ratio Rank: 55
SCJ Calmar Ratio Rank: 53
SCJ Martin Ratio Rank: 51

RAYJ

RAYJ Risk / Return Rank: 50
RAYJ Sharpe Ratio Rank: 48
RAYJ Sortino Ratio Rank: 48
RAYJ Omega Ratio Rank: 44
RAYJ Calmar Ratio Rank: 59
RAYJ Martin Ratio Rank: 53

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. RAYJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Japan Small Cap ETF (SCJ) and Rayliant SMDAM Japan Equity ETF (RAYJ). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	SCJ	RAYJ	Difference
Sharpe ratio: Return per unit of total volatility	1.83	1.50	+0.32
Sortino ratio: Return per unit of downside risk	2.57	2.17	+0.39
Omega ratio: Gain probability vs. loss probability	1.32	1.27	+0.06
Calmar ratio: Return relative to maximum drawdown	2.48	2.64	-0.16
Martin ratio: Return relative to average drawdown	8.30	8.31	-0.01

SCJ vs. RAYJ - Sharpe Ratio Comparison

The current SCJ Sharpe Ratio is 1.83, which is comparable to the RAYJ Sharpe Ratio of 1.50. The chart below compares the historical Sharpe Ratios of SCJ and RAYJ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SCJ vs. RAYJ - Drawdown Comparison

The maximum SCJ drawdown since its inception was -43.52%, which is greater than RAYJ's maximum drawdown of -15.96%. Use the drawdown chart below to compare losses from any high point for SCJ and RAYJ.

Drawdown Indicators

	SCJ	RAYJ	Difference
Max Drawdown Largest peak-to-trough decline	-43.52%	-15.96%	-27.56%
Max Drawdown (1Y) Largest decline over 1 year	-12.17%	-14.00%	+1.83%
Max Drawdown (3Y) Largest decline over 3 years	-12.43%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-33.25%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-38.87%	—	—
Current Drawdown Current decline from peak	-1.98%	-4.99%	+3.01%
Average Drawdown Average peak-to-trough decline	-10.36%	-3.52%	-6.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.62%	4.44%	-0.82%

Volatility

SCJ vs. RAYJ - Volatility Comparison

The current volatility for iShares MSCI Japan Small Cap ETF (SCJ) is 4.97%, while Rayliant SMDAM Japan Equity ETF (RAYJ) has a volatility of 9.24%. This indicates that SCJ experiences smaller price fluctuations and is considered to be less risky than RAYJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCJ	RAYJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.97%	9.24%	-4.27%
Volatility (6M) Calculated over the trailing 6-month period	13.57%	18.92%	-5.35%
Volatility (1Y) Calculated over the trailing 1-year period	16.49%	24.57%	-8.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.87%	23.19%	-7.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.27%	23.19%	-6.92%

SCJ vs. RAYJ - Expense Ratio Comparison

SCJ has a 0.49% expense ratio, which is lower than RAYJ's 0.72% expense ratio.

Dividends

SCJ vs. RAYJ - Dividend Comparison

SCJ's dividend yield for the trailing twelve months is around 2.80%, less than RAYJ's 4.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RAYJ Rayliant SMDAM Japan Equity ETF	4.49%	1.72%	0.78%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SCJ iShares MSCI Japan Small Cap ETF	2.80%	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 RAYJ in my portfolio?

SCJ and RAYJ have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCJ or RAYJ?

RAYJ has higher volatility (9.24%) compared to SCJ (4.97%). In terms of maximum drawdown, SCJ dropped -43.52% vs RAYJ's -15.96%.

Which ETF is better, SCJ or RAYJ?

On 1-year performance, RAYJ leads with 36.81% vs 29.99% for SCJ. On fees, SCJ is cheaper at 0.49% per year. On volatility, SCJ has been the lower-risk option at 4.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCJ or RAYJ?

Over the 1-year period, RAYJ has performed better with a 36.81% return vs 29.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCJ or RAYJ?

SCJ is cheaper with a 0.49% expense ratio, compared with 0.72% for RAYJ.

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

RAYJ has the higher dividend yield at 4.49%, compared with 2.80% for SCJ.

What is the main difference between SCJ and RAYJ?

They also come from different issuers: iShares and Rayliant. Their fees differ too: 0.49% for SCJ and 0.72% for RAYJ.

Which has better risk-adjusted returns?

SCJ currently has the higher Sharpe Ratio (1.83 vs 1.50), 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.