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Is iShares MSCI Intl SmallCap Multifactor ETF (ISCF) a Strong ETF Right Now?
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Making its debut on 04/28/2015, smart beta exchange traded fund iShares MSCI Intl SmallCap Multifactor ETF (ISCF - Free Report) provides investors broad exposure to the Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $432.59 million, this makes it one of the average sized ETFs in the Broad Developed World ETFs. ISCF is managed by Blackrock. Before fees and expenses, ISCF seeks to match the performance of the MSCI World exUSA Small Cap Diversified Multiple-Factor Index.
The MSCI World exUSA Small Cap Diversified Multiple-Factor Index is designed to select equity securities from MSCI World ex USA Small Cap Index that have high exposure to four investment style factors: value, quality, momentum and low size.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.40%, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 5.28%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, K+s Ag (SDF) accounts for about 0.88% of the fund's total assets, followed by Crescent Point Energy Corp (CPG - Free Report) and Man Group Plc .
Performance and Risk
The ETF has lost about -20.18% so far this year and is down about -20.86% in the last one year (as of 11/08/2022). In the past 52-week period, it has traded between $25.80 and $37.89.
The fund has a beta of 0.94 and standard deviation of 23% for the trailing three-year period, which makes ISCF a medium risk choice in this particular space. With about 713 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares MSCI Intl SmallCap Multifactor ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Total International Stock ETF (VXUS - Free Report) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA - Free Report) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $45.62 billion in assets, Vanguard FTSE Developed Markets ETF has $91.80 billion. VXUS has an expense ratio of 0.07% and VEA charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed World ETFs.
Bottom Line
To 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.
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Is iShares MSCI Intl SmallCap Multifactor ETF (ISCF) a Strong ETF Right Now?
Making its debut on 04/28/2015, smart beta exchange traded fund iShares MSCI Intl SmallCap Multifactor ETF (ISCF - Free Report) provides investors broad exposure to the Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $432.59 million, this makes it one of the average sized ETFs in the Broad Developed World ETFs. ISCF is managed by Blackrock. Before fees and expenses, ISCF seeks to match the performance of the MSCI World exUSA Small Cap Diversified Multiple-Factor Index.
The MSCI World exUSA Small Cap Diversified Multiple-Factor Index is designed to select equity securities from MSCI World ex USA Small Cap Index that have high exposure to four investment style factors: value, quality, momentum and low size.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.40%, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 5.28%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, K+s Ag (SDF) accounts for about 0.88% of the fund's total assets, followed by Crescent Point Energy Corp (CPG - Free Report) and Man Group Plc .
Performance and Risk
The ETF has lost about -20.18% so far this year and is down about -20.86% in the last one year (as of 11/08/2022). In the past 52-week period, it has traded between $25.80 and $37.89.
The fund has a beta of 0.94 and standard deviation of 23% for the trailing three-year period, which makes ISCF a medium risk choice in this particular space. With about 713 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares MSCI Intl SmallCap Multifactor ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Total International Stock ETF (VXUS - Free Report) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA - Free Report) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $45.62 billion in assets, Vanguard FTSE Developed Markets ETF has $91.80 billion. VXUS has an expense ratio of 0.07% and VEA charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed World ETFs.
Bottom Line
To 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.