In an interesting Morningstar article, investors seeking exposure to Japan are called to consider small-cap exchange-traded funds as a viable investment vehicle to enter the Japanese market following the election of a new government.

After more than 50 years in power, Japan's ruling party has given way to the Democratic Party of Japan, which seeks to end 20 years of economic stagnation by focusing on small- and medium-size businesses, a shift from the heavy big-company focus the country has had for decades.

There are three small-cap Japan ETFs in the market, which despite having very different holdings, have shown very similar performances due to similar sector weightings. They are iShares MSCI Japan Small Cap Index (NYSEArca: SCJ), WisdomTree Japan SmallCap Dividend (NYSEArca: DFJ) and SPDR Russell/Nomura Small Cap Japan (NYSEArca: JSC).

But obstacles could derail promises, so investors beware. An entrenched bureaucracy, a massive budget deficit—currently standing at some 180 percent of annual GDP—uncertainties surrounding global economic recovery and the strength of the yen are all factors to be considered.

You can read the full Morningstar article here.