Designed to provide broad exposure to the Foreign Small/Mid Blend ETF category of the market, the iShares International Small-Cap Equity Factor ETF (ISCF) is a smart beta exchange traded fund launched on 04/28/2015.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
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.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
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
Managed by Blackrock, ISCF has amassed assets over $684.06 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.24%, making it one of the cheaper products in the space.
ISCF's 12-month trailing dividend yield is 3.52%.
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, Abn Amro Bank Nv (ABN) accounts for about 1.16% of the fund's total assets, followed by Banco De Sabadell (SAB) and Centerra Gold (CG).
The top 10 holdings account for about 5.97% of total assets under management.
Performance and Risk
So far this year, ISCF return is roughly 12.56%, and it's up approximately 16.1% in the last one year (as of 09/09/2026). During this past 52-week period, the fund has traded between $39.00 and $46.30.
The ETF has a beta of 0.81 and standard deviation of 15.12% for the trailing three-year period, making it a medium risk choice in the space. With about 1187 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.
State Street 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. State Street SPDR S&P International Small Cap ETF has $944.96 million in assets, Schwab International Small-Cap Equity ETF has $5.78 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
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iShares International Small-Cap Equity Factor ETF (ISCF): ETF Research Reports
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