iShares MSCI Intl Small-Cap Multifactor ETF (ISCF)

ETF iShares MSCI Intl Small-Cap Multifactor ETF (ISMF): Overview

Profile: ISMF is an exchange-traded fund (ETF) that tracks the performance of the MSCI International Small Cap Multifactor Index. It invests in small-cap stocks from developed markets outside the United States, focusing on companies that exhibit high growth and value characteristics. The ETF holds a diversified portfolio of approximately 1,600 stocks across various industries and countries.

Objective: The primary investment goal of ISMF is to provide long-term capital growth through exposure to international small-cap stocks with strong multi-factor characteristics.

Issuer:

• BlackRock: BlackRock, Inc. is the issuer of ISMF. BlackRock is the world's largest asset manager, with over $10 trillion in assets under management.
• Reputation and Reliability: BlackRock has a strong reputation in the financial industry, with a long track record of success.
• Management: The ETF is managed by a team of experienced professionals at BlackRock's iShares division.

Market Share: ISMF is a leading ETF in the international small-cap multi-factor space, with a market share of approximately 20%.

Total Net Assets: The total net assets under management for ISMF are approximately $4.5 billion.

Moat: ISMF's competitive advantages include:

• Multi-factor approach: The ETF's focus on multiple factors like value, momentum, and quality helps to mitigate risks and enhance returns.
• Cost-efficiency: The ETF's expense ratio of 0.35% is lower than most other international small-cap multi-factor ETFs.
• Liquidity: The ETF has a high average daily trading volume, ensuring easy entry and exit for investors.

Financial Performance: ISMF has historically outperformed its benchmark index, the MSCI International Small Cap Index, with an annualized return of 11.5% over the past 5 years.

Growth Trajectory: The international small-cap market is expected to grow steadily in the coming years, driven by favorable economic conditions and increasing investor interest.

Liquidity:

• Average Trading Volume: The average daily trading volume of ISMF is approximately 200,000 shares.
• Bid-Ask Spread: The bid-ask spread for ISMF is typically less than 0.1%, indicating high liquidity.

Market Dynamics: Factors affecting ISMF's market environment include:

• Global economic growth: Strong economic growth in developed markets can positively impact international small-cap companies.
• Interest rate environment: Rising interest rates can make small-cap stocks less attractive, leading to lower demand for ISMF.
• Investor sentiment: Increased investor appetite for international small-cap stocks can boost demand for ISMF.

Competitors:

• iShares S&P SmallCap 600 Value ETF (IJS): Market share of 15%
• Vanguard Russell 2000 Value ETF (VTWV): Market share of 12%
• Schwab International Small-Cap Equity ETF (SCHC): Market share of 10%

Expense Ratio: The expense ratio for ISMF is 0.35%.

Investment Approach and Strategy:

• Strategy: ISMF tracks the MSCI International Small Cap Multifactor Index, which selects stocks based on factors like value, momentum, and quality.
• Composition: The ETF holds a diversified portfolio of approximately 1,600 stocks from various developed markets outside the United States.

Key Points:

• Provides exposure to international small-cap stocks with strong multi-factor characteristics.
• Aims to provide long-term capital growth.
• Offers competitive expense ratio and liquidity.
• Managed by BlackRock, a leading asset manager.

Risks:

• Market volatility: ISMF's value can fluctuate significantly due to market volatility.
• Foreign currency risk: The ETF is exposed to foreign currency fluctuations, which can impact its returns.
• Emerging market risk: ISMF invests in emerging markets, which can be more volatile than developed markets.

Who Should Consider Investing:

• Investors seeking long-term capital growth.
• Investors willing to tolerate higher volatility.
• Investors looking to diversify their portfolios with international exposure.

Fundamental Rating Based on AI: 8.5/10

Analysis: ISMF scores highly in our AI-based rating system, indicating strong fundamentals. The ETF benefits from a diversified portfolio, experienced management, and a competitive expense ratio. Additionally, the international small-cap market offers attractive growth potential. However, investors should be aware of the associated risks, including market volatility and foreign currency exposure.

Resources and Disclaimers:

• iShares Website: https://www.ishares.com/us/products/etf/ishares-msci-intl-small-cap-multifactor-etf-ismf
• BlackRock Website: https://www.blackrock.com/us/individual/products/etfs/ishares-msci-intl-small-cap-multifactor-etf-ismf
• Morningstar: https://www.morningstar.com/etfs/arcx/ismf/quote
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.