Below is a chart of iShares MSCI Japan Small-Cap ETF (SJC) from 2008 to 2019 reflecting the year-over-year (YoY) percentage change.
In the last 12 months, iShares MSCI Japan Small-Cap ETF (SJC) has declined approximately -7% with a low that reached –22%, on a YoY basis. Below is the history of returns when iShares MSCI Japan Small-Cap ETF (SJC) has declined by similar YoY levels since 2008.
Following a similar decline of -7%, had iShares MSCI Japan Small-Cap ETF (SJC) been acquired and held for 1 years the average return of +11% and median return was +12% with a high level of probability.
We’re assuming that no additional purchase is made for the stock and that the position is held at least one year. The “average” return jumps to +21% if held for a minimum of 2 years. This makes it worth considering a longer timeframe if a purchase is made at the current levels.