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Is iShares International Small-Cap Equity Factor ETF (ISCF) a Strong ETF Right Now?
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A smart beta exchange traded fund, the iShares International Small-Cap Equity Factor ETF (ISCF - Free Report) debuted on 04/28/2015, and offers broad exposure to the Foreign Small/Mid Blend ETF 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.
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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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 & Index
The fund is sponsored by Blackrock. It has amassed assets over $348.75 million, making it one of the average sized ETFs in the Foreign Small/Mid Blend ETF. ISCF seeks to match the performance of the MSCI World exUSA Small Cap Diversified Multiple-Factor Index before fees and expenses.
The STOXX International Small-Cap Equity Factor Index composes of global developed market small-capitalization stocks, excluding the US, that have favourable exposure to target style factors subject to constraints.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for ISCF are 0.23%, which makes it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 4.22%.
Sector Exposure and Top Holdings
Most 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.
When you look at individual holdings, Banco De Sabadell Sa (SAB) accounts for about 0.74% of the fund's total assets, followed by Swissquote Group Holding Sa (SQN) and Abn Amro Bank Nv (ABN).
Its top 10 holdings account for approximately 5.13% of ISCF's total assets under management.
Performance and Risk
The ETF has added roughly 18.48% so far this year and was up about 20.42% in the last one year (as of 06/19/2025). In the past 52-week period, it has traded between $30.25 and $38.85
The fund has a beta of 0.82 and standard deviation of 16.73% for the trailing three-year period, which makes ISCF a medium risk choice in this particular space. With about 1099 holdings, it effectively diversifies company-specific risk .
Alternatives
iShares International Small-Cap Equity Factor ETF is a reasonable option for investors seeking to outperform the Foreign Small/Mid Blend ETF segment of the market. However, there are other ETFs in the space which investors could consider.
SPDR S&P International Small Cap ETF (GWX) tracks S&P Developed Ex-U.S. Under USD2 Billion Index and the Schwab International Small-Cap Equity ETF (SCHC) tracks FTSE DEVELOPED SMALL CAP EX US LIQUID INDEX. SPDR S&P International Small Cap ETF has $694.29 million in assets, Schwab International Small-Cap Equity ETF has $4.43 billion. GWX has an expense ratio of 0.40% and SCHC changes 0.08%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Small/Mid Blend ETF
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-Cap Equity Factor ETF (ISCF) a Strong ETF Right Now?
A smart beta exchange traded fund, the iShares International Small-Cap Equity Factor ETF (ISCF - Free Report) debuted on 04/28/2015, and offers broad exposure to the Foreign Small/Mid Blend ETF 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.
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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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 & Index
The fund is sponsored by Blackrock. It has amassed assets over $348.75 million, making it one of the average sized ETFs in the Foreign Small/Mid Blend ETF. ISCF seeks to match the performance of the MSCI World exUSA Small Cap Diversified Multiple-Factor Index before fees and expenses.
The STOXX International Small-Cap Equity Factor Index composes of global developed market small-capitalization stocks, excluding the US, that have favourable exposure to target style factors subject to constraints.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for ISCF are 0.23%, which makes it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 4.22%.
Sector Exposure and Top Holdings
Most 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.
When you look at individual holdings, Banco De Sabadell Sa (SAB) accounts for about 0.74% of the fund's total assets, followed by Swissquote Group Holding Sa (SQN) and Abn Amro Bank Nv (ABN).
Its top 10 holdings account for approximately 5.13% of ISCF's total assets under management.
Performance and Risk
The ETF has added roughly 18.48% so far this year and was up about 20.42% in the last one year (as of 06/19/2025). In the past 52-week period, it has traded between $30.25 and $38.85
The fund has a beta of 0.82 and standard deviation of 16.73% for the trailing three-year period, which makes ISCF a medium risk choice in this particular space. With about 1099 holdings, it effectively diversifies company-specific risk .
Alternatives
iShares International Small-Cap Equity Factor ETF is a reasonable option for investors seeking to outperform the Foreign Small/Mid Blend ETF segment of the market. However, there are other ETFs in the space which investors could consider.
SPDR S&P International Small Cap ETF (GWX) tracks S&P Developed Ex-U.S. Under USD2 Billion Index and the Schwab International Small-Cap Equity ETF (SCHC) tracks FTSE DEVELOPED SMALL CAP EX US LIQUID INDEX. SPDR S&P International Small Cap ETF has $694.29 million in assets, Schwab International Small-Cap Equity ETF has $4.43 billion. GWX has an expense ratio of 0.40% and SCHC changes 0.08%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Small/Mid Blend ETF
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.