A smart beta exchange traded fund, the WisdomTree Japan SmallCap Dividend ETF (DFJ) debuted on 06/16/2006, and offers broad exposure to the Asia-Pacific (Developed) ETFs category of the market.What Are Smart Beta ETFs?The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.Fund Sponsor & IndexDFJ is managed by Wisdomtree, and this fund has amassed over $206.69 million, which makes it one of the average sized ETFs in the Asia-Pacific (Developed) ETFs. DFJ, before fees and expenses, seeks to match the performance of the WisdomTree Japan SmallCap Dividend Index.WisdomTree Japan SmallCap Dividend Index measures the performance of dividend-paying small capitalization companies in Japan. After the 300 largest companies have been removed from the WisdomTree Japan Dividend Index, the remaining companies are chosen for inclusion in the Index. Companies are weighted in the Index based on annual cash dividends paid.Cost & Other ExpensesSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for DFJ are 0.58%, which makes it one of the more expensive products in the space.It's 12-month trailing dividend yield comes in at 2.46%.Sector Exposure and Top HoldingsMost ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.Taking into account individual holdings, Seven Bank Ltd accounts for about 0.84% of the fund's total assets, followed by Jtekt Corp and Electric Power Development Co.DFJ's top 10 holdings account for about 6.62% of its total assets under management.Performance and RiskThe ETF has gained about 6.97% and is up roughly 32.04% so far this year and in the past one year (as of 04/26/2021), respectively. DFJ has traded between $59.88 and $79.93 during this last 52-week period.The ETF has a beta of 0.63 and standard deviation of 20.81% for the trailing three-year period, making it a medium risk choice in the space. With about 693 holdings, it effectively diversifies company-specific risk.AlternativesWisdomTree Japan SmallCap Dividend ETF is a reasonable option for investors seeking to outperform the Asia-Pacific (Developed) ETFs segment of the market. However, there are other ETFs in the space which investors could consider.JPMorgan BetaBuilders Japan ETF (BBJP) tracks MORNINGSTAR JAPAN TRGT MRKT EXPOSURE ID and the iShares MSCI Japan ETF (EWJ) tracks MSCI Japan Index. JPMorgan BetaBuilders Japan ETF has $8.44 billion in assets, iShares MSCI Japan ETF has $12.80 billion. BBJP has an expense ratio of 0.19% and EWJ charges 0.51%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Asia-Pacific (Developed) ETFs.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WISDMTR-JP SC D (DFJ): ETF Research Reports ISHARS-JAPAN (EWJ): ETF Research Reports JPM-BBLD JAP (BBJP): ETF Research Reports To read this article on Zacks.com click here.