iShares MSCI Intl Small-Cap Multifactor ETF (ISCF)

Overview

The iShares MSCI Intl Small-Cap Multifactor ETF (ISCF) seeks to track the investment results of an index composed of international small-capitalization stocks exhibiting relatively higher exposure to four investment style factors: value, momentum, quality and size. It provides exposure to a diversified portfolio of international small-cap stocks selected using a multi-factor approach, aiming for enhanced risk-adjusted returns.

Reputation and Reliability

iShares, managed by BlackRock, is one of the largest and most reputable ETF providers globally, known for its extensive range of ETFs and efficient management.

Management Expertise

BlackRock has a seasoned team of investment professionals managing its ETFs, leveraging extensive research and risk management capabilities.

Goal

To track the investment results of an index composed of international small-capitalization stocks exhibiting relatively higher exposure to four investment style factors: value, momentum, quality and size.

Investment Approach and Strategy

Strategy: The ETF aims to track the MSCI International Small Cap Diversified Multiple-Factor Index.

Composition The ETF holds a diversified portfolio of international small-cap stocks across various sectors, weighted based on a multi-factor model.

Market Share: ISCF's market share within the international small-cap factor ETF segment is substantial but depends on specific peer group definition and fluctuates based on market dynamics.

Total Net Assets (AUM): 376000000

Key Competitors

• AVUV
• DFA Investment Dimensions Group Inc DFA International Small Cap Value ETF
• VSS

Competitive Landscape

The international small-cap factor ETF market is competitive, with several players offering similar strategies. ISCF benefits from BlackRock's brand recognition and large asset base. Competitors like AVUV often emphasize value tilts, potentially outperforming ISCF during value rallies but underperforming during growth-driven markets. ISCF's diversified factor approach can provide a more balanced risk-return profile compared to single-factor ETFs.

Historical Performance: Historical performance varies depending on the time frame. Investors should review standardized performance data to understand past returns.

Benchmark Comparison: The ETF's performance should be compared to the MSCI International Small Cap Diversified Multiple-Factor Index to assess tracking efficiency.

Expense Ratio: 0.3

Average Trading Volume

ISCF's average trading volume is moderate, which should be considered when placing large orders.

Bid-Ask Spread

The bid-ask spread for ISCF is generally tight, indicating relatively low transaction costs.

Market Environment Factors

Economic growth in developed international markets, interest rate policies, and global trade dynamics influence ISCF's performance. Fluctuations in currency exchange rates also play a crucial role.

Growth Trajectory

ISCF's growth trajectory depends on the performance of international small-cap equities and the effectiveness of its multi-factor strategy. Changes in factor weightings and underlying holdings occur periodically to reflect market conditions.

Competitive Edge

ISCF's competitive advantage lies in its established brand name, BlackRock's management expertise, and a well-defined multi-factor investment strategy. By combining value, momentum, quality and size factors, ISCF aims to offer a more balanced risk-return profile than single-factor ETFs. The ETF's cost-effectiveness and tradability make it an attractive option for investors seeking international small-cap exposure. However, the multi-factor approach is also subject to significant changes in factor weightings and can be less transparent.

Volatility

ISCF's volatility is comparable to other international small-cap ETFs, reflecting the inherent risks of small-cap investing.

Market Risk

ISCF is exposed to market risk associated with international equities, including economic downturns, political instability, and currency fluctuations. Small-cap stocks are generally more volatile than large-cap stocks.

Ideal Investor Profile

ISCF is suitable for investors seeking diversified exposure to international small-cap stocks with a focus on factor-based investing.

Market Risk

ISCF is best for long-term investors who understand the risks associated with small-cap and international markets and are comfortable with moderate volatility.

The iShares MSCI Intl Small-Cap Multifactor ETF (ISCF) offers diversified exposure to international small-cap stocks selected using a multi-factor approach. Managed by BlackRock, it benefits from a strong brand and experienced management team. ISCF is exposed to market risks including international equities and volatility, and should be considered a long-term investment. While the ETFu2019s cost is competitive, the multi-factor strategy aims to achieve enhanced risk-adjusted returns compared to traditional small-cap indices.

Data Sources:

• iShares website
• MSCI website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and a thorough understanding of the risks involved.