Is iShares International Small-Cap Equity Factor ETF (ISCF) a Strong ETF Right Now?

The iShares International Small-Cap Equity Factor ETF (ISCF) was launched on 04/28/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Broad Developed World ETFs category of the market.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 offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.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 & IndexManaged by Blackrock, ISCF has amassed assets over $527.28 million, making it one of the average sized ETFs in the Broad Developed World ETFs. 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 ExpensesInvestors 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's 12-month trailing dividend yield comes in at 3.85%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.Looking at individual holdings, Celestica Inc (CLS) accounts for about 0.67% of total assets, followed by Banco De Sabadell Sa (SAB) and Swissquote Group Holding Sa (SQN).Its top 10 holdings account for approximately 5.25% of ISCF's total assets under management.Performance and RiskThe ETF has added roughly 6.86% and is up about 13.85% so far this year and in the past one year (as of 12/13/2024), respectively. ISCF has traded between $30.62 and $35.47 during this last 52-week period.ISCF has a beta of 0.96 and standard deviation of 17.15% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 1027 holdings, it effectively diversifies company-specific risk.AlternativesIShares International Small-Cap Equity Factor ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.Vanguard Total International Stock ETF (VXUS) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $77.30 billion in assets, Vanguard FTSE Developed Markets ETF has $137.77 billion. VXUS has an expense ratio of 0.08% and VEA charges 0.06%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed World ETFs.Bottom LineTo 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.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares International Small-Cap Equity Factor ETF (ISCF): ETF Research Reports Celestica, Inc. (CLS): Free Stock Analysis Report Vanguard FTSE Developed Markets ETF (VEA): ETF Research Reports Vanguard Total International Stock ETF (VXUS): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks