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Is iShares International Small-Cap Equity Factor ETF (ISCF) a Strong ETF Right Now?
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Making its debut on 04/28/2015, smart beta exchange traded fund iShares International Small-Cap Equity Factor ETF (ISCF - Free Report) provides investors 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.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option 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.
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
Because the fund has amassed over $500.72 million, this makes it one of the average sized ETFs in the Foreign Small/Mid Blend ETF. ISCF is managed by Blackrock. ISCF, 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
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.
Operating expenses on an annual basis are 0.23% for this ETF, which makes it one of the cheaper products in the space.
It's 12-month trailing dividend yield comes in at 3.89%.
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.
When you look at individual holdings, Banco De Sabadell Sa (SAB) accounts for about 0.87% of the fund's total assets, followed by Abn Amro Bank Nv (ABN) and Swissquote Group Holding Sa (SQN).
ISCF's top 10 holdings account for about 5.75% of its total assets under management.
Performance and Risk
The ETF has added about 28.49% and is up about 23.19% so far this year and in the past one year (as of 10/20/2025), respectively. ISCF has traded between $30.25 and $41.63 during this last 52-week period.
ISCF has a beta of 0.84 and standard deviation of 15.34% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 1089 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 $787.36 million in assets, Schwab International Small-Cap Equity ETF has $4.91 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?
Making its debut on 04/28/2015, smart beta exchange traded fund iShares International Small-Cap Equity Factor ETF (ISCF - Free Report) provides investors 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.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option 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.
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
Because the fund has amassed over $500.72 million, this makes it one of the average sized ETFs in the Foreign Small/Mid Blend ETF. ISCF is managed by Blackrock. ISCF, 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
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.
Operating expenses on an annual basis are 0.23% for this ETF, which makes it one of the cheaper products in the space.
It's 12-month trailing dividend yield comes in at 3.89%.
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.
When you look at individual holdings, Banco De Sabadell Sa (SAB) accounts for about 0.87% of the fund's total assets, followed by Abn Amro Bank Nv (ABN) and Swissquote Group Holding Sa (SQN).
ISCF's top 10 holdings account for about 5.75% of its total assets under management.
Performance and Risk
The ETF has added about 28.49% and is up about 23.19% so far this year and in the past one year (as of 10/20/2025), respectively. ISCF has traded between $30.25 and $41.63 during this last 52-week period.
ISCF has a beta of 0.84 and standard deviation of 15.34% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 1089 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 $787.36 million in assets, Schwab International Small-Cap Equity ETF has $4.91 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.