ISZE Profile
The iShares MSCI International Size Factor ETF is designed to provide investors with exposure to international equities with specific size characteristics. The fund primarily invests at least 80% of its assets in the component securities of the underlying index, which is the MSCI World ex USA Index. This index captures the performance of large and mid-cap stocks across developed markets outside the United States and Canada.
The index employs a rules-based methodology to select stocks based on size factors, focusing on companies that are smaller in market capitalization relative to the broader market. By emphasizing these size factors, the ETF aims to capture the performance characteristics of smaller companies, which may offer different growth prospects compared to larger, more established firms. This approach is intended to provide investors with a differentiated exposure to international equity markets.
In addition to investing in the index's component securities, the fund may also hold investments that have economic characteristics substantially identical to those of the index's components. This includes derivatives and other instruments that mimic the performance of the underlying securities, allowing the fund to efficiently track the index while managing liquidity and transaction costs.
The iShares MSCI International Size Factor ETF is suitable for investors seeking to diversify their portfolios by adding exposure to international small and mid-cap stocks. The fund's strategy aims to capture potential growth opportunities associated with smaller companies outside the U.S., while also offering a cost-effective way to gain broad market exposure through a single investment vehicle. The ETF’s focus on size factors aligns with investment strategies that seek to exploit market inefficiencies and achieve potentially higher returns by targeting specific segments of the global equity market.
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