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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 traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
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.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
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
The fund is managed by Blackrock, and has been able to amass over $441.4 million, which makes it one of the average sized ETFs in the Foreign Small/Mid Blend ETF. This particular fund, before fees and expenses, seeks to match the performance of the MSCI World exUSA Small Cap Diversified Multiple-Factor Index.
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
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 this ETF are 0.23%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 3.94%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Banco De Sabadell Sa (SAB) accounts for about 0.83% of total assets, followed by Abn Amro Bank Nv (ABN) and Swissquote Group Holding Sa (SQN).
The top 10 holdings account for about 5.56% of total assets under management.
Performance and Risk
So far this year, ISCF has gained about 26.71%, and is up roughly 25.28% in the last one year (as of 08/19/2025). During this past 52-week period, the fund has traded between $30.25 and $40.15.
ISCF has a beta of 0.82 and standard deviation of 16.30% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 1073 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 $758.52 million in assets, Schwab International Small-Cap Equity ETF has $4.75 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 traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
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.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
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
The fund is managed by Blackrock, and has been able to amass over $441.4 million, which makes it one of the average sized ETFs in the Foreign Small/Mid Blend ETF. This particular fund, before fees and expenses, seeks to match the performance of the MSCI World exUSA Small Cap Diversified Multiple-Factor Index.
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
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 this ETF are 0.23%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 3.94%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Banco De Sabadell Sa (SAB) accounts for about 0.83% of total assets, followed by Abn Amro Bank Nv (ABN) and Swissquote Group Holding Sa (SQN).
The top 10 holdings account for about 5.56% of total assets under management.
Performance and Risk
So far this year, ISCF has gained about 26.71%, and is up roughly 25.28% in the last one year (as of 08/19/2025). During this past 52-week period, the fund has traded between $30.25 and $40.15.
ISCF has a beta of 0.82 and standard deviation of 16.30% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 1073 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 $758.52 million in assets, Schwab International Small-Cap Equity ETF has $4.75 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.