ISCF Profile
The iShares MSCI Intl Small-Cap Multifactor ETF aims to provide investors with diversified exposure to small-cap international equities through a multifactor investment strategy. Managed by BlackRock, Inc., the fund invests at least 80% of its assets in the component securities of its underlying index, or in investments with similar economic characteristics. This strategy ensures that the ETF effectively tracks the performance of the index it seeks to replicate.
The underlying index, a subset of the MSCI World ex USA Small Cap Index, focuses on equity securities that exhibit high exposure to four key investment style factors: value, quality, momentum, and low size. The index employs a multifactor approach to select small-cap stocks with strong characteristics in these areas. Value represents stocks with attractive valuations, quality highlights companies with robust financial health, momentum targets stocks with strong recent performance, and low size emphasizes smaller companies with growth potential.
The ETF’s multifactor strategy is designed to enhance returns while managing risk by maintaining a risk profile similar to the MSCI World ex USA Small Cap Index, which includes small-cap stocks from developed markets outside the United States. By integrating multiple factors into its investment process, the fund aims to capture a broad range of return drivers and reduce the volatility often associated with single-factor strategies.
Overall, the iShares MSCI Intl Small-Cap Multifactor ETF leverages BlackRock’s expertise in international investing and a sophisticated multifactor approach to provide a well-rounded investment solution. This ETF offers investors targeted exposure to high-potential small-cap stocks from developed markets outside the U.S., combining various factors to potentially enhance returns and manage risk within the international small-cap segment.
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