At a glance
SCZ charges 0.4% a year, above the 0.29% average of the 5 funds most like it (the 5th cheapest of 6). It has $13.20B in assets, the 2nd largest of that group; it paid 3.2% of its price in distributions over the past 12 months, semiannual. Over the past year it returned +13.1% with distributions reinvested (S&P 500: +11.5%), 3rd of those 6 funds; over three years it returned +18.3% a year. At its worst it fell 37.3% in the 2020 crash (S&P 500: 33.7%) and 33.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 7 months and 31 months after the lows. Its ten largest positions make up 2.7% of the fund, out of 2,069 in all.
The short version
iShares MSCI EAFE Small-Cap ETF (SCZ) is a BlackRock index fund that tracks the MSCI EAFE Small Cap Index. That means about 2,069 smaller companies in developed markets outside the U.S. and Canada, with Japan making up 36.73% of assets as of July 31, 2026. With $13.2 billion in net assets, it is the second-largest of six similar funds. But its 0.40% expense ratio is well above Schwab's SCHC (0.11%) and Vanguard's VSS (0.08%).
Price history
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SCZ +13.1% over the year to Nov 2, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| SCZ official prospectus, to Dec 31, 2024 | — | +1.35% | — | +2.14% | +5.38% | — |
| MSCIACW Iex USA Index Net index, same period | — | +5.53% | — | +4.10% | +4.80% | — |
| MSCIEAFE Small Cap Index Net index, same period | — | +1.82% | — | +2.30% | +5.52% | — |
| SCZ price data to Nov 2, 2026 | +9.0% | +13.1% | +18.3% | +4.9% | +8.1% | +5.4% |
- Over the year to Nov 2, 2026, SCZ returned +13.1%, 3rd of 6 among similar funds.
- Its 5-year annualized return was +4.9% and its 10-year +8.1%.
- In the 2020 COVID crash it fell 37.3% and regained its old high 6.5 months after the low.
- Its worst full calendar year was 2008 (-48.5%); its best was 2009 (+42.9%).
- The deepest fall in its price history was 61.9% (Dec 13, 2007 to Mar 9, 2009), recovered by Apr 24, 2013.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +9.0% | — |
| 2025 | +32.1% | — |
| 2024 | +1.6% | +1.35% |
| 2023 | +13.0% | +12.90% |
| 2022 | -21.3% | -21.22% |
| 2021 | +10.1% | +10.02% |
| 2020 | +11.7% | +12.07% |
| 2019 | +24.7% | +24.73% |
| 2018 | -17.6% | -17.80% |
| 2017 | +32.7% | +32.51% |
| 2016 | +2.6% | +2.42% |
| 2015 | +9.1% | +9.16% |
| 2014 | -6.1% | — |
| 2013 | +28.6% | — |
| 2012 | +21.3% | — |
| 2011 | -15.1% | — |
| 2010 | +21.5% | — |
| 2009 | +42.9% | — |
| 2008 | -48.5% | — |
| 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 37.3% over that stretch · deepest drop along the way 37.3%, back to its old high 6.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 33.3% over that stretch · deepest drop along the way 33.5%, back to its old high 30.8 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.1700 | |
| 2025 | $2.5600 | +20.2% |
| 2024 | $2.1300 | +16.4% |
| 2023 | $1.8300 | +63.4% |
| 2022 | $1.1200 | -48.1% |
| 2021 | $2.1600 | +109.7% |
| 2020 | $1.0300 | -53.0% |
| 2019 | $2.1900 | +51.0% |
| 2018 | $1.4500 | -5.2% |
| 2017 | $1.5300 | +8.5% |
| 2016 | $1.4100 | +36.6% |
| 2015 | $1.0320 | -15.5% |
| 2014 | $1.2210 | 0.0% |
| 2013 | $1.2210 | -8.1% |
| 2012 | $1.3280 | +16.5% |
| 2011 | $1.1400 | -5.1% |
| 2010 | $1.2010 | +47.4% |
| 2009 | $0.8150 | +13.5% |
| 2008 | $0.7180 |
What's inside
As of Jul 31, 2026, the fund held 2,069 securities; the ten largest made up 2.69% of assets, and 4.72% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| DIPLOMA PLC | 0.37% | |
| BLUESCOPE STEEL LIMITED | 0.28% | |
| BEAZLEY PLC | 0.28% | |
| KOKUSAI ELECTRIC CORPORATION | 0.28% | |
| IMI PLC | 0.27% | |
| WEIR GROUP PLC(THE) | 0.26% | |
| Niterra Co., Ltd. | 0.24% | |
| Accelleron Industries AG | 0.24% | |
| STOREBRAND ASA | 0.24% | |
| Games Workshop Group PLC | 0.24% | |
| GAZTRANSPORT ET TECHNIGAZ SA | 0.23% | |
| ROHM COMPANY LIMITED | 0.23% | |
| PSP Swiss Property AG | 0.23% | |
| SPIE SA | 0.23% | |
| Shizuoka Financial Group, Inc. | 0.23% |
By country
Japan 36.73%United Kingdom 11.8%Australia 10.05%Sweden 4.85%Israel 4.3%By asset type
Stocks 96.8%Other 2.92%What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $1.17B (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +3.33%, -3.23%, +1.42%.
How it works
SCZ tracks the MSCI EAFE Small Cap Index, built by MSCI Inc. It is drawn from a broader MSCI index of developed markets in Europe, Australasia and the Far East, which leaves out the U.S. and Canada. MSCI ranks each country's companies by free float-adjusted market value, which counts only shares available to public investors. The biggest companies, making up about 85% of that value, are large and mid caps. The small-cap index covers the next slice, from 85% to 99%. As of July 31, 2025, it spanned 21 countries. MSCI, not BlackRock, picks the stocks and sets their weights.
BlackRock Fund Advisors uses representative sampling. Rather than buying every stock, it holds a sample meant to match the index's size, industry mix and yield. At least 80% of assets go into index stocks or equivalent depositary receipts. Up to 20% can go into futures, options, swaps, cash and money market funds. As of July 31, 2026, the fund held 2,069 stocks plus small futures positions on the FTSE 100, Euro Stoxx 50 and TOPIX indexes.
The fund doesn't try to beat its index or move to cash when markets fall. Portfolio turnover was 18%. It may lend out securities worth up to one-third of its total assets. Because the fund is priced in U.S. dollars, a stronger dollar can reduce returns even when the stocks rise.
What it really costs
- SCZ charges 0.4% a year, versus an average of 0.29% for the similar funds below (5th of 6, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $41 in the first year and $505 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SCZ | $41 | $128 | $224 | $505 |
In a retirement portfolio
It adds thousands of smaller non-U.S. companies that many U.S.-focused portfolios barely own, but its deep past drops make it better suited as a complement than a core holding.
SCZ could add exposure to small companies in Japan, the U.K., Australia and Europe. The trade-off is sharp drops. It fell 37.3% in the 2020 COVID crash and took about 6.5 months to recover. In 2022 it lost 33.5% and needed about 31 months, until May 2025, to get back. Its deepest fall was 61.9%, from December 2007 to March 2009, and recovery took 49.5 months. Its worst calendar year was 2008, at -48.5%. Selling shares for spending in years like those would lock in losses. The trailing yield was 3.19% as of October 29, 2026, paid twice a year. Its 0.40% expense ratio is above the 0.29% average for similar funds. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting broad exposure to about 2,069 smaller companies in Japan, the U.K., Australia and other developed markets outside North America.
- Those who value a large fund with a long history: $13.2 billion in net assets as of July 31, 2026, and trading since December 2007.
- Holders who can sit through deep drops, like the 33.5% fall in 2022 that took about 31 months to recover.
Look elsewhere if
- Cost-focused investors: the 0.40% expense ratio is well above SCHC (0.11%) and VSS (0.08%), which also hold international small caps.
- Anyone needing steady monthly income: distributions come twice a year, and the trailing yield was 3.19% as of October 29, 2026.
- Investors wanting emerging markets or Canada, which the index excludes, or a smaller stake in Japan, at 36.73% of assets.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| SCZ this fund | — | 0.4% | $13.20B | +13.1% | +18.3% |
| DFIS Dimensional International Small Cap ETF | 26% | 0.39% | $5.74B | +14.0% | +23.1% |
| PDN Invesco RAFI Developed Markets ex-U.S. Smal… | 22% | 0.49% | $352.6M | +12.8% | +21.7% |
| SCHC Schwab International Small-Cap Equity ETF | 22% | 0.11% | $5.77B | +9.3% | +21.4% |
| VSS Vanguard FTSE All-World ex-US Small-Cap ETF | 22% | 0.08% | $13.55B | +7.2% | +18.0% |
| FNDC Schwab Fundamental International Small Equi… | 22% | 0.39% | $3.18B | +13.9% | +21.7% |
Questions investors ask
What does SCZ invest in?
SCZ holds smaller companies in developed markets outside the U.S. and Canada. As of July 31, 2026, it owned 2,069 stocks. The largest country weights were Japan (36.73%), the U.K. (11.8%) and Australia (10.05%). The biggest positions were Diploma PLC, BlueScope Steel, Beazley, Kokusai Electric and IMI plc. None made up more than 0.4% of assets, and the 10 largest together made up just 2.69%.
Does SCZ pay monthly dividends?
No. SCZ pays distributions twice a year, not monthly. In the 12 months to October 29, 2026, it paid $2.67 per share, a trailing yield of 3.19%. Payments can rise or fall with the companies' profits. They also move with exchange rates, because income earned in foreign currencies is worth more or less in U.S. dollars as rates change. Amounts may differ from one payment to the next.
What's the difference between SCZ and DFIS?
Both own international small-cap stocks. About 26% of their holdings overlap, the most of any similar fund. SCZ tracks the MSCI EAFE Small Cap Index. DFIS is the Dimensional International Small Cap ETF. Costs are nearly identical: 0.40% for SCZ and 0.39% for DFIS. As of October 27, 2026, DFIS returned 14% over one year and 23.1% a year over three years. SCZ returned 12.8% and 20.6% as of October 29, 2026. SCZ is larger, with $13.2 billion in net assets to DFIS's $5.7 billion.
Is SCZ's expense ratio high?
Yes, compared with most similar funds. SCZ charges 0.40% a year. That ranks 5th of 6 on cost and is above the 0.29% average for its peers. Schwab International Small-Cap Equity ETF (SCHC) charges 0.11%, and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) charges 0.08%. Each shares only about 22% of its holdings with SCZ. In the SEC's standard $10,000 example, SCZ would cost about $41 after one year and $505 over 10 years.
What is SCZ's average annual return?
As of December 31, 2024, SCZ's official average annual returns were 1.35% over one year, 2.14% over five years and 5.38% over 10 years. That trailed the MSCI EAFE Small Cap Index slightly. Based on share prices through October 29, 2026, it returned 8.1% a year over 10 years, helped by a 32.08% gain in 2025. Results have been uneven: it lost 21.22% in 2022.