At a glance
DFJ charges 0.58% a year, above the 0.54% average of the 2 funds most like it (the 2nd cheapest of 3). It has $374.0M in assets, the 2nd largest of that group; it paid 2.45% of its price in distributions over the past 12 months, semiannual. Over the past year it returned +23.5% with distributions reinvested (S&P 500: +11.5%), the best of those 3 funds; over three years it returned +22.2% a year. At its worst it fell 27.9% in the 2020 crash (S&P 500: 33.7%) and 21.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 6 months and 10 months after the lows. Its ten largest positions make up 5.9% of the fund, out of 794 in all.
The short version
WisdomTree Japan SmallCap Dividend Fund (DFJ) is an index ETF that holds small Japanese companies that pay dividends. It weights each company by the total dividends it pays, not by its stock market value. As of June 30, 2026, it held 794 stocks, and no single stock was above about 0.7% of the fund. Its 0.58% expense ratio is higher than the 0.50% charged by the iShares MSCI Japan Small Cap ETF (SCJ).
Price history
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DFJ +23.5% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| DFJ official prospectus, to Dec 31, 2025 | — | +30.87% | — | +8.57% | +7.82% | — |
| Wisdom Tree Japan Small Cap Dividend Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +31.36% | — | +8.83% | +8.35% | — |
| MSCI Japan Small Cap Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +28.70% | — | +5.52% | +7.02% | — |
| MSCI Japan Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +24.60% | — | +6.60% | +7.62% | — |
| DFJ price data to Oct 27, 2026 | +19.3% | +23.5% | +22.2% | +11.9% | +8.6% | +6.2% |
- Over the year to Oct 27, 2026, DFJ returned +23.5%, 1st of 3 among similar funds.
- Its 5-year annualized return was +11.9% and its 10-year +8.6%.
- In the 2020 COVID crash it fell 27.9% and regained its old high 5.6 months after the low.
- Its worst full calendar year was 2018 (-18.5%); its best was 2017 (+32.1%).
- The deepest fall in its price history was 46% (Feb 26, 2007 to Oct 10, 2008), recovered by Mar 26, 2013.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +19.3% | — |
| 2025 | +31.9% | +30.87% |
| 2024 | +2.8% | +3.24% |
| 2023 | +21.8% | +21.60% |
| 2022 | -9.0% | -8.65% |
| 2021 | +0.4% | +0.51% |
| 2020 | +1.3% | -0.06% |
| 2019 | +17.0% | +17.02% |
| 2018 | -18.5% | -17.63% |
| 2017 | +32.1% | +31.62% |
| 2016 | +11.5% | +11.04% |
| 2015 | +18.0% | — |
| 2014 | -3.4% | — |
| 2013 | +19.6% | — |
| 2012 | +7.4% | — |
| 2011 | -3.7% | — |
| 2010 | +17.4% | — |
| 2009 | +1.0% | — |
| 2008 | -12.5% | — |
| 2007 | -10.6% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 40.4% over that stretch · deepest drop along the way 41.9%, back to its old high 52.6 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 21.9% over that stretch · deepest drop along the way 27.9%, back to its old high 5.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 19.7% over that stretch · deepest drop along the way 21.2%, back to its old high 9.7 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.4000 | |
| 2025 | $2.5900 | +40.0% |
| 2024 | $1.8500 | +1.1% |
| 2023 | $1.8300 | +10.2% |
| 2022 | $1.6610 | +12.2% |
| 2021 | $1.4800 | -21.3% |
| 2020 | $1.8800 | +14.6% |
| 2019 | $1.6400 | +34.4% |
| 2018 | $1.2200 | -5.6% |
| 2017 | $1.2920 | +17.5% |
| 2016 | $1.1000 | +57.1% |
| 2015 | $0.7000 | -12.5% |
| 2014 | $0.8000 | -29.2% |
| 2013 | $1.1300 | +16.5% |
| 2012 | $0.9700 | +9.0% |
| 2011 | $0.8900 | +18.7% |
| 2010 | $0.7500 | +4.2% |
| 2009 | $0.7200 | +56.5% |
| 2008 | $0.4600 | -24.6% |
| 2007 | $0.6100 |
What's inside
As of Jun 30, 2026, the fund held 794 securities; the ten largest made up 5.93% of assets.
| Holding | Weight | |
|---|---|---|
| DAISHI HOKUETSU FINANCIAL GROUP INC | 0.71% | |
| CHUGIN FINANCIAL GROUP INC | 0.67% | |
| SANKI ENGINEERING CO LTD | 0.61% | |
| NICHIAS CORP | 0.59% | |
| CITIZEN WATCH CO LTD | 0.59% | |
| INFRONEER HOLDINGS INC | 0.59% | |
| EXEDY CORP | 0.56% | |
| YAMAGUCHI FINANCIAL GROUP INC | 0.55% | |
| NSK LTD | 0.55% | |
| SEINO HOLDINGS COMPANY LTD | 0.51% | |
| ZEON CORP | 0.51% | |
| HAZAMA ANDO CORP | 0.50% | |
| NISHI-NIPPON FINANCIAL HOLDINGS INC | 0.50% | |
| LINTEC CORP | 0.50% | |
| TOKYO SEIMITSU CO LTD | 0.47% |
By country
Japan 99.6%United States 0.01%By asset type
Stocks 99.61%What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $36.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +5.81%, +2.55%, -1.08%.
How it works
DFJ tracks the WisdomTree Japan SmallCap Dividend Index. WisdomTree, Inc. designed the index, and it is also the parent company of the fund's adviser, WisdomTree Asset Management. Once a year, on a screening date, the index looks for companies that meet five tests. They must do their main business in Japan and list on the Tokyo Stock Exchange. They must have paid at least $5 million in cash dividends over the prior year. They must be worth at least $100 million. They must also pass minimum trading-volume tests. The index then drops the 300 largest eligible companies, which leaves the smaller ones. As of June 30, 2026, index members ranged from $67.1 million to $5.3 billion in market value, with an average of $950.9 million.
Companies that paid more total dollars in dividends get bigger weights. At each annual rebalance, the index caps any one stock at 2%, any one sector at 25% and real estate at 15%. Between rebalances, weights can drift past these caps. As of June 30, 2026, industrials and materials were each about 15% or more of the index.
The fund uses representative sampling. This means it can hold a sample of index stocks that behaves like the whole index instead of owning every member. It must keep at least 80% of net assets in index stocks or close equivalents. Portfolio turnover, the share of holdings replaced over a year, was 31%.
What it really costs
- DFJ charges 0.58% a year, versus an average of 0.54% for the similar funds below (2nd of 3, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $59 in the first year and $726 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| DFJ | $59 | $186 | $324 | $726 |
In a retirement portfolio
It is a single-country, small-company stock fund, and its past drops have been deep enough that it fits best as a smaller position next to broader core holdings.
DFJ could add exposure to hundreds of small Japanese companies that most US-focused portfolios own little of. Its yield was 2.45% as of October 27, 2026, paid twice a year. The losses in bad markets have been steep, though. Its deepest drop was 46%, from February 2007 to October 2008, and it did not recover until March 2013. It fell 27.9% in the 2020 COVID crash and recovered in about six months. In the 2022 bear market it fell 21.2% and took about 10 months to recover. Its worst calendar year was 2018, at -17.63%. Anyone who has to sell shares in a year like that would lock in losses. On a $10,000 investment, the SEC's standard example puts costs at $59 for one year and $726 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want broad exposure to small Japanese companies spread across 794 stocks, with the top 10 holding just 5.93% of assets as of June 30, 2026.
- Investors who prefer dividend-weighted indexing. The fund beat the MSCI Japan Small Cap Index over 1, 5 and 10 years through December 31, 2025.
- People building a smaller satellite position who can accept a 2.45% yield paid twice a year (as of October 27, 2026) and swings in the yen.
Look elsewhere if
- Cost-focused investors: the 0.58% expense ratio is above SCJ's 0.50% and above the 0.54% average for similar funds.
- Anyone who may need to sell in a downturn. The fund fell 46% from 2007 to 2008 and took about 53 months to recover.
- Investors who want monthly or quarterly income, or protection from the yen falling against the dollar. The fund pays twice a year, and yen moves affect its value.
Close alternatives
Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 27, 2026.Questions investors ask
Is DFJ good for retirement income?
DFJ pays some income, but it is a stock fund first. Its yield was 2.45% as of October 27, 2026, or $2.78 per share over the prior 12 months. It pays dividends twice a year, not monthly or quarterly, so payments arrive in larger, less frequent amounts. The share price can fall sharply. The fund dropped 21.2% in 2022 and 27.9% in early 2020, so the value behind that income can swing a lot.
What's the difference between DFJ and SCJ?
Both funds hold small Japanese companies, but DFJ weights its holdings by dividends paid. Its index also leaves out the 300 largest eligible companies. The iShares MSCI Japan Small Cap ETF (SCJ) costs less, at 0.50% versus 0.58%. As of October 27, 2026, DFJ returned 23.5% over one year and 22.2% a year over three years. SCJ returned 19.5% and 21% over the same periods. The two funds' holdings overlap only partly.
What is DFJ's expense ratio?
DFJ's expense ratio is 0.58% a year, according to the prospectus filed July 29, 2026. The whole amount is the management fee, with no fee waiver. The SEC's standard example assumes $10,000 invested with a 5% return each year. In that example, costs would be about $59 after one year, $186 after three years, $324 after five years and $726 after 10 years. The average for similar funds is 0.54%.
How has DFJ performed over the last 10 years?
DFJ returned an average of 7.82% a year over the 10 years ending December 31, 2025, according to its prospectus. That trailed its own index, which returned 8.35% before fees. It was ahead of the MSCI Japan Small Cap Index at 7.02% and the MSCI Japan Index at 7.62%. Returns varied a lot from year to year, from a 17.63% loss in 2018 to a 31.62% gain in 2017.
Is DFJ hedged against the Japanese yen?
The prospectus does not describe any currency hedge. It lists currency exchange rate risk and says changes in the value of the Japanese yen will affect the value of the fund's shares. The fund reported no derivatives as of June 30, 2026. So for a US investor, a weaker yen can lower returns and a stronger yen can raise them, on top of how Japanese stock prices move.