DFJ: Energy Price Volatility Provides A Buying Opportunity

The WisdomTree Japan SmallCap Dividend Fund ETF has modestly outperformed the S&P 500 so far in 2026, notwithstanding a recent pullback after the outbreak of the war in Iran. While high oil prices increase near-term recession risks for the Japanese economy, oil futures indicate the energy spike should dissipate over 2027-2029. DFJ offers a well-diversified portfolio with a pronounced cyclical tilt, making the ETF's returns dependent on developments within the Japanese economy.