Japanese stocks are rallying, and some small- and mid-cap names could start participating in those gains, some investors say. The iShares MSCI Japan ETF , which focuses on larger cap stocks in the market, is higher by 16% in 2023. Meanwhile, the iShares MSCI Japan Small-Cap ETF is up more than 7% over the same time period. SCJ YTD mountain iShares MSCI Japan Small-Cap ETF this year What's more, cyclical stocks are more heavily represented in small- and mid-cap Japanese equities than among large-caps. Another actively managed fund is the Hennessy Japan Small Cap Investor (HJPSX) .

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Persons: haven't, Carlos Asilis, Glovista's Asilis, Hennessy, HJPSX, Morningstar Organizations: Nikkei, Japan ETF, Glovista Investments, Fidelity, Morningstar, Renesas Electronics Locations: Japan, Fidelity Japan