iShares MSCI Japan Small-Cap ETF SCJ is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has surged 26.5% from its 52-week low price of $88.08 per share.
Japanese equities have underperformed globally since 2011. The MSCI Japan Small-Cap Index only outperformed the MSCI World Small Cap Index in four years since 2011. Japan's economy has faced significant pressure since 2019-2020, causing many investors to avoid Japanese stocks. Despite recent underperformance, factors exist that could renew investor interest in Japan's stock market.