EWJ vs SCJ

EWJAiShares MSCI Japan ETF

SCJAiShares MSCI Japan Small-Cap ETF

In short

EWJ The 1996 original. iShares' Japan fund was the default way to own Tokyo's biggest names before most of its rivals existed, and it still trades like it: roughly 170 large and mid-cap stocks, yen exposure unhedged.

SCJ Japan past the household-name exporters. SCJ holds roughly 800 of the country's smaller listed companies, the domestic slice that large-cap Japan benchmarks leave out, and it has been running that mandate since 2007.

Stated mandate

EWJ The fund seeks to track an index of Japanese equities, providing targeted exposure to companies in Japan.

SCJ The fund seeks to track an index composed of small-capitalization Japanese equities.

Why people hold it

• EWJ Launched in 1996 and still one of the most heavily traded funds in the Japan category, which generally means tight spreads and room to trade size.
• Tracks the MSCI Japan Index closely, holding roughly 170 large and mid-cap Japanese companies.
• A multi-billion-dollar iShares fund: the kind of scale and sponsorship that keeps a product well supported.

• SCJ One job, done tightly: it tracks the MSCI Japan Small Cap Index, roughly 800 names deep, the part of the market big blue-chip Japan benchmarks leave on the floor.ishares.com
• Trading since 2007, so there is a long live record here, not a backtest, and it has stayed tight to its index over that stretch.
• About 800 holdings means no single stock carries the portfolio, and the 0.50% fee sits right at the median for single-country Japan funds.

Worth knowing

• EWJ Cheaper Japan beta exists. FLJP charges 0.09% and BBJP 0.19% against this fund's 0.49%. The extra fee buys the liquidity and the long record.
• No currency hedge here, so yen moves against the dollar flow straight into the return, up or down. Hedged Japan funds such as FLJH take the other approach.
• One country, roughly 170 names, and cash comes back only once or twice a year rather than quarterly.

• SCJ 0.50% a year is the going rate for the niche, but broad Japan trackers like FLJP (0.09%) and BBJP (0.19%) charge a fraction. Small-cap coverage is the upcharge.
• Moderately traded, and Tokyo is closed while US markets are open, so spreads and price-to-value gaps can widen at the edges of the session.
• Unhedged: the holdings are priced in yen, so currency swings land on top of the stock moves, in both directions. Distributions come once or twice a year.ishares.com

Full EWJ profile⁠

Full SCJ profile⁠