iShares International Small‑Cap Equity Factor ETF

iShares International Small-Cap Equity Factor ETF (ISCF), from BlackRock, tracks a STOXX index of small companies in developed markets outside the US. The index tilts toward four traits: momentum, quality, value and low volatility. Its expense ratio (annual fee) is 0.24%, below the 0.32% average of similar funds, though SCHC (0.11%) and VSS (0.08%) cost less. It is the smallest fund in its peer group, with about $658 million in net assets as of July 31, 2026.

• Over the year to Oct 27, 2026, ISCF returned +10.4%, 5th of 7 among similar funds.
• Its 5-year annualized return was +7.5% and its 10-year +9.4%.
• In the 2020 COVID crash it fell 37.4% and regained its old high 6.7 months after the low.
• Its worst full calendar year was 2018 (-18.8%); its best was 2017 (+38.1%).
• The deepest fall in its price history was 40.8% (Jan 26, 2018 to Mar 23, 2020), recovered by Dec 4, 2020.

As of Jul 31, 2026, the fund held 1,177 securities; the ten largest made up 5.68% of assets, and 5.9% sat in cash and money-market holdings.

• Over the three months to Jul 31, 2026, investors added a net $26.4M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +2.20%, -2.69%, +2.16%.

The fund tracks the STOXX International Small-Cap Equity Factor Index. That index starts from the STOXX International Developed Markets Small Cap Index, which holds roughly the bottom 15% of each developed country's investable stock market by value, excluding the US. A computer optimization then picks and weights stocks to get as much exposure as possible to four "factors." Factors are traits linked to returns. Momentum means rising prices and earnings. Quality covers profitability, little share dilution, carbon emissions intensity and greenhouse gas reduction targets. Value means a low price compared with book value, earnings, cash flow and dividends. Low volatility means smaller price swings over the past 12 months.

Rules keep country and sector weights close to the parent index, limit trading and hold overall risk near the parent's level. No stock can exceed 10%, and stocks above 4.5% must total less than 22.5%. The index is rebalanced every quarter. It had about 1,092 stocks as of July 31, 2025. The fund held 1,177 as of July 31, 2026, and its top ten made up just 5.68% of assets.

BlackRock Fund Advisors uses "representative sampling." That means it holds a sample that resembles the index instead of every stock. At least 80% of assets go into index stocks. Up to 20% can go into futures, swaps, cash and similar holdings. Portfolio turnover was 30%.

• ISCF charges 0.24% a year, versus an average of 0.32% for the similar funds below (3rd of 7, cheapest first).
• Of that, 0.23% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $25 in the first year and $306 over 10 years (assuming a 5% annual return).

It adds about 1,177 small companies outside the US, led by Japan, the UK and Canada, to portfolios that often lean on large US stocks.

ISCF launched in April 2015, so it has no record from 2008. In the 2020 COVID crash it fell 37.4% and took 6.7 months to recover. In the 2022 bear market it fell 28.1% and needed 21.5 months, until July 2024, to get back to its old high. Its worst calendar year was 2018, a loss of 18.18%. Its deepest drop, 40.8%, ran from January 2018 to March 2020. Anyone who had to sell shares during those stretches would have locked in losses.

The trailing yield was 3.65% as of October 27, 2026. The fund pays twice a year, so the income comes in uneven lumps. Costs are modest at 0.24% a year. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).