At a glance
HSCZ charges 0.43% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $244.3M in assets, the 8th largest of that group; it paid 3.09% of its price in distributions over the past 12 months, semiannual. Over the past year it returned +14.7% with distributions reinvested (S&P 500: +11.5%), the best of those 8 funds; over three years it returned +21.9% a year. At its worst it fell 34.7% in the 2020 crash (S&P 500: 33.7%) and 19.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 15 months after the lows.
The short version
iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ) is a BlackRock fund of funds. It owns the iShares MSCI EAFE Small Cap ETF and adds currency forward contracts, so moves in the yen, euro and other currencies against the U.S. dollar largely cancel out. That gives investors small companies in 21 developed markets outside the U.S. and Canada, mostly without the currency swings, for an expense ratio of 0.43% a year.
Price history
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HSCZ +14.7% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| HSCZ official prospectus, to Dec 31, 2024 | — | +12.60% | — | +7.89% | — | +8.60% |
| MSCIACWI Ex USA Index Net index, same period | — | +5.53% | — | +4.10% | — | +4.60% |
| HSCZ price data to Oct 27, 2026 | +12.3% | +14.7% | +21.9% | +10.6% | +11.5% | +10.4% |
- Over the year to Oct 27, 2026, HSCZ returned +14.7%, 1st of 8 among similar funds.
- Its 5-year annualized return was +10.6% and its 10-year +11.5%.
- In the 2020 COVID crash it fell 34.7% and regained its old high 8.2 months after the low.
- Its worst full calendar year was 2018 (-13.9%); its best was 2019 (+27.9%).
- The deepest fall in its price history was 34.9% (Feb 12, 2020 to Mar 16, 2020), recovered by Nov 20, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +12.3% | — |
| 2025 | +25.7% | — |
| 2024 | +12.9% | +12.60% |
| 2023 | +17.0% | +17.04% |
| 2022 | -11.4% | -11.36% |
| 2021 | +17.9% | +17.78% |
| 2020 | +6.6% | +6.25% |
| 2019 | +27.9% | +27.27% |
| 2018 | -13.9% | -13.55% |
| 2017 | +24.5% | +24.33% |
| 2016 | +6.9% | +7.51% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 32.8% over that stretch · deepest drop along the way 34.7%, back to its old high 8.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 18.7% over that stretch · deepest drop along the way 19.4%, back to its old high 14.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.5700 | |
| 2025 | $1.2600 | +20.0% |
| 2024 | $1.0500 | +20.7% |
| 2023 | $0.8700 | -87.5% |
| 2022 | $6.9520 | +528.9% |
| 2021 | $1.1054 | +108.9% |
| 2020 | $0.5291 | -63.0% |
| 2019 | $1.4300 | -7.1% |
| 2018 | $1.5400 | +97.4% |
| 2017 | $0.7800 | +18.2% |
| 2016 | $0.6600 |
What's inside
As of Jul 31, 2026, the fund held 1 securities; the ten largest made up 101.41% of assets.
| Fund held | Weight | |
|---|---|---|
| ISHARES MSCI EAFE SMALL CAP ETF Other | 101.41% |
By country
United States 101.41%By asset type
Other 101.41%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $30.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +4.25%, -0.85%, +0.64%.
How it works
HSCZ tracks the MSCI EAFE Small Cap 100% Hedged to USD Index. Under MSCI's rules, small caps are the companies too small for the large- and mid-cap groups. They make up roughly the 85% to 99% band of each market's free float-adjusted value, meaning the value of shares the public can actually trade. As of July 31, 2025, the index covered 21 developed markets, including Japan, the U.K., Australia and Switzerland. It leaned toward consumer goods and services and toward industrials.
The fund doesn't buy the stocks directly. It holds a sister fund, the unhedged iShares MSCI EAFE Small Cap ETF, which was 101.4% of net assets as of July 31, 2026, plus about 180 currency forward contracts. A forward is a deal to swap currencies at a fixed rate on a future date. By agreeing in advance to exchange foreign currencies for dollars, the fund cancels out most gains or losses from exchange-rate moves.
MSCI resets the hedge once a month and doesn't adjust it in between. So between resets the fund can be slightly over-hedged (if stocks fall) or under-hedged (if they rise). The hedge helps when the dollar strengthens and holds the fund back when foreign currencies rise. BlackRock uses representative sampling, which means owning a sample that mirrors the index rather than every stock. Portfolio turnover was 16%.
What it really costs
- HSCZ charges 0.43% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- The fee includes a 0.4% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $44 in the first year and $816 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| HSCZ | $44 | $138 | $241 | $816 |
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
It adds smaller companies from overseas developed markets that U.S.-focused funds leave out, with most of the currency swings removed.
HSCZ can spread a U.S.-heavy portfolio across small overseas companies, but the ride has been bumpy. In the 2020 COVID crash it fell 34.9% between February 12 and March 16, 2020, and took about eight months to recover. In the 2022 bear market it dropped 19.4% and needed about 14.5 months to get back, recovering on December 14, 2023. Its worst calendar year in the prospectus was 2018, at -13.55%. The fund launched in 2015, so it has no 2008 record. Anyone drawing on savings in a slump could end up cashing out shares at a deep loss. The trailing yield was 3.09% as of October 27, 2026, paid twice a year. The expense ratio is 0.43%. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want developed-market small-cap stocks outside the U.S. and Canada without currency swings, at an expense ratio of 0.43%.
- People with U.S.-heavy portfolios looking for smaller companies across 21 markets such as Japan, the U.K. and Australia.
- Holders who are fine with income twice a year; the trailing yield was 3.09% as of October 27, 2026.
Look elsewhere if
- Those who want foreign currency exposure as a diversifier, since the hedge holds returns back when foreign currencies rise against the dollar.
- Anyone uneasy with steep drops: HSCZ fell 34.9% in early 2020 and 19.4% during the 2022 bear market.
- Cost-focused investors: the prospectus says this structure costs more than holding the underlying fund and currency hedges directly.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| HSCZ this fund | 0.43% | $244.3M | +14.7% | +21.9% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
What's the difference between HSCZ and the iShares MSCI EAFE Small Cap ETF?
HSCZ owns the iShares MSCI EAFE Small Cap ETF and adds currency forward contracts to remove most exchange-rate effects. The underlying fund is unhedged. It gains extra return when foreign currencies rise against the dollar and loses some when they fall. HSCZ aims to give the stock returns alone. It tends to do better than the unhedged fund when the dollar strengthens and worse when it weakens. The prospectus notes that HSCZ costs more than owning the underlying fund and hedges directly.
Does HSCZ pay dividends?
Yes. HSCZ pays distributions twice a year. Over the twelve months to October 27, 2026, it paid $1.33 per share, a trailing yield of 3.09%. Because the payout comes semiannually, it may suit investors who don't need a steady monthly check from this holding. The amount can vary from one payment to the next, depending on dividends from the overseas small companies held through the underlying fund.
What is the HSCZ expense ratio?
HSCZ's expense ratio is 0.43% a year, according to the prospectus filed November 21, 2025. Using the SEC's standard example of $10,000 invested with a 5% annual return, total costs would be about $44 after one year, $138 after three years, $241 after five years and $816 after ten years. Because HSCZ is a fund of funds that also uses currency hedges, the prospectus says it carries more costs than owning the underlying fund and hedges directly.
How has HSCZ performed over the long run?
HSCZ has beaten its broad comparison index. Through December 31, 2024, the prospectus shows average annual returns of 12.6% for one year, 7.89% for five years and 8.6% since inception. The MSCI ACWI ex USA Index returned 5.53%, 4.1% and 4.6% over the same periods. Based on price, HSCZ returned 14.7% over the year to October 27, 2026, and averaged 11.5% a year over ten years.
Is HSCZ a risky ETF?
It carries meaningful stock-market risk. HSCZ holds small companies, which tend to swing more than large ones. Its worst quarter was the first quarter of 2020, at -25.25%, and its deepest drop was 34.9% during the COVID crash. It lost 11.36% in 2022 and 13.55% in 2018. The currency hedge reduces exchange-rate risk only. It does not protect against falling stock prices. Three-year volatility was 12.7% as of October 27, 2026.