iShares MSCI EAFE Small-Cap ETF (SCZ)SCZ

US ETF iShares MSCI EAFE Small-Cap ETF (SCZ)

Profile:

The iShares MSCI EAFE Small-Cap ETF (SCZ) is an exchange-traded fund that seeks to track the performance of the MSCI EAFE Small Cap Index. This index comprises small-capitalization companies located in developed markets outside of North America. SCZ offers investors exposure to a diversified portfolio of international small-cap stocks.

Objective:

The primary investment objective of SCZ is to provide long-term capital growth by investing in small-capitalization stocks from developed markets outside of North America.

Issuer:

BlackRock

• Reputation and Reliability: BlackRock is the world's largest asset manager, with a strong reputation for expertise and innovation.
• Management: The ETF is managed by a team of experienced portfolio managers with a deep understanding of international markets.

Market Share:

SCZ is the largest ETF in the international small-cap equity space, with a market share of approximately 40%.

Total Net Assets:

As of October 26, 2023, SCZ has approximately $24.5 billion in total net assets.

Moat:

• Diversification: SCZ provides investors with exposure to a broad range of international small-cap companies, mitigating single-stock risk.
• Liquidity: SCZ is a highly liquid ETF, making it easy for investors to buy and sell shares.
• Expense Ratio: SCZ has a low expense ratio of 0.39%.

Financial Performance:

• Historical Performance: Over the past 5 years, SCZ has generated an average annual return of 9.2%.
• Benchmark Comparison: SCZ has outperformed its benchmark index, the MSCI EAFE Small Cap Index, by an average of 0.5% per year over the past 5 years.

Growth Trajectory:

The outlook for international small-cap stocks is positive, driven by factors such as global economic growth and increasing investor appetite for emerging markets.

Liquidity:

• Average Trading Volume: SCZ trades approximately 1.5 million shares per day.
• Bid-Ask Spread: The bid-ask spread for SCZ is typically less than 0.05%.

Market Dynamics:

• Economic Indicators: Global economic growth and interest rates significantly impact international small-cap stocks.
• Sector Growth Prospects: The growth prospects of various sectors within the international small-cap universe influence the ETF's performance.
• Market Conditions: Market volatility and investor sentiment can affect the price of SCZ.

Competitors:

• iShares Core MSCI EAFE Small-Cap ETF (ISZE): Market share of 30%
• Vanguard FTSE All-World ex-US Small-Cap ETF (VSS): Market share of 20%

Expense Ratio:

The expense ratio for SCZ is 0.39%.

Investment Approach and Strategy:

• Strategy: SCZ tracks the MSCI EAFE Small Cap Index.
• Composition: The ETF holds approximately 1,200 small-capitalization stocks from developed markets outside of North America.

Key Points:

• SCZ provides diversified exposure to international small-cap stocks.
• SCZ has a strong track record of performance.
• SCZ is a liquid and cost-effective ETF.

Risks:

• Volatility: International small-cap stocks are typically more volatile than large-cap stocks.
• Market Risk: The value of SCZ can be affected by factors such as global economic growth, interest rates, and political instability.
• Currency Risk: SCZ is exposed to currency risk as it invests in companies located outside of the United States.

Who Should Consider Investing:

SCZ is suitable for investors with a long-term investment horizon who are comfortable with the risks associated with international small-cap stocks.

Fundamental Rating Based on AI:

8/10

SCZ has strong fundamentals, including a diversified portfolio, a low expense ratio, and a strong track record of performance. The ETF also benefits from BlackRock's expertise and reputation. However, investors should be aware of the risks associated with international small-cap stocks before investing.

Resources and Disclaimers:

• iShares MSCI EAFE Small-Cap ETF website: https://www.ishares.com/us/products/239601/ishares-msci-eafe-small-cap-etf
• Morningstar: https://www.morningstar.com/etfs/arcx/scz/quote
• Disclaimer: This information should not be considered financial advice. Please consult with a financial professional before making investment decisions.