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Is iShares International Small (ISCF) a Strong ETF Right Now?
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Designed to provide broad exposure to the World ETFs category of the market, the iShares International Small (ISCF - Free Report) is a smart beta exchange traded fund launched on 04/28/2015.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by Blackrock, ISCF has amassed assets over $584.79 million, making it one of the smaller ETFs in the World ETFs. 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
Since 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 ISCF are 0.23%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.59%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Ct Reit Units Trust (CRT.UN) accounts for about 0.62% of the fund's total assets, followed by Tokyu Reit Inc and Bank Of Ireland Group Plc (BIRG).
ISCF's top 10 holdings account for about 5.09% of its total assets under management.
Performance and Risk
So far this year, ISCF has added roughly 5.37%, and is up about 4.95% in the last one year (as of 05/16/2023). During this past 52-week period, the fund has traded between $25.80 and $33.23.
The ETF has a beta of 0.95 and standard deviation of 17.81% for the trailing three-year period, making it a medium risk choice in the space. With about 1045 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares International Small is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Aptus International Enhanced Yield ETF (IDUB - Free Report) tracks ---------------------------------------- and the ActivePassive International Equity ETF (APIE - Free Report) tracks ----------------------------------------. Aptus International Enhanced Yield ETF has $61.15 million in assets, ActivePassive International Equity ETF has $67 million. IDUB has an expense ratio of 0.43% and APIE charges 0.45%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the 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 International Small (ISCF) a Strong ETF Right Now?
Designed to provide broad exposure to the World ETFs category of the market, the iShares International Small (ISCF - Free Report) is a smart beta exchange traded fund launched on 04/28/2015.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by Blackrock, ISCF has amassed assets over $584.79 million, making it one of the smaller ETFs in the World ETFs. 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
Since 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 ISCF are 0.23%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.59%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Ct Reit Units Trust (CRT.UN) accounts for about 0.62% of the fund's total assets, followed by Tokyu Reit Inc and Bank Of Ireland Group Plc (BIRG).
ISCF's top 10 holdings account for about 5.09% of its total assets under management.
Performance and Risk
So far this year, ISCF has added roughly 5.37%, and is up about 4.95% in the last one year (as of 05/16/2023). During this past 52-week period, the fund has traded between $25.80 and $33.23.
The ETF has a beta of 0.95 and standard deviation of 17.81% for the trailing three-year period, making it a medium risk choice in the space. With about 1045 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares International Small is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Aptus International Enhanced Yield ETF (IDUB - Free Report) tracks ---------------------------------------- and the ActivePassive International Equity ETF (APIE - Free Report) tracks ----------------------------------------. Aptus International Enhanced Yield ETF has $61.15 million in assets, ActivePassive International Equity ETF has $67 million. IDUB has an expense ratio of 0.43% and APIE charges 0.45%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the 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.