With all of the negativity directed at the economic and markets scene in Japan following yet another failed rally in 2013, it may surprise investors to learn that Japanese small caps are actually making an 8-year high:

While the Nikkei 225 and other more widely-followed large-cap Japanese indices have bounced off their recent lows, they still remain well below their 52-week highs. However, the small caps, as represented by the MSCI Japan Small Cap Index, are now breaking above the high set earlier this year. They still must contend with the high set in 2006; however, Japanese small caps are demonstrating superior relative strength at the moment.

FYI, here are couple ETF’s in this space:

• WisdomTree Japan SmallCap Dividend ($DFJ)
• iShares MSCI Japan Small Cap ($SCJ)