Equity: Developed Markets Ex-U.S. - Small Cap

ISDS Top Performer Intra-day
Price $24.03
Today’s Change 0.88%
10:54am 11/15/2019
GWX Bottom Performer Intra-day
Price $30.95
Today’s Change -0.83%
3:05pm 11/20/2019

ETF.com Insight

With 10 ETFs and over $17.09B in combined AUM, the Equity: Developed Markets Ex-U.S. - Small Cap segment provides exposure to the Developed Markets Ex-U.S. space with a focus on Small Cap securities.

Year-to-date, the best-performing ETF in the segment is the iShares Currency Hedged MSCI EAFE Small-Cap ETF (HSCZ), with a total return of 23.58%. Meanwhile, the most popular ETF is the iShares MSCI EAFE Small-Cap ETF (SCZ) with $9.95BB in assets under management.

Investors should take a look at the Schwab International Small-Cap Equity ETF (SCHC). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. SCHC tracks a market-cap-weighted index of the smallest 10% of companies in the FTSE Developed ex-US Index that have market caps of at least $150 million. SCHC has an expense ratio of 0.12% and tracks the FTSE Developed ex-Small Cap ex-U.S. Liquid Index.

Performance Dispersion

ETF.com Efficiency Insight

The average efficiency score in the Equity: Developed Markets Ex-U.S. - Small Cap segment is 79 out of 100, with the Schwab International Small-Cap Equity ETF(SCHC) obtaining the highest rating of 99 out of 100.

Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.43% per year, with the Schwab International Small-Cap Equity ETF (SCHC) having the lowest expense ratio, charging investors 0.12% yearly.

Investors should look for funds with tight tracking, such as the iShares Currency Hedged MSCI EAFE Small-Cap ETF (HSCZ), with a 12-month median tracking difference of 0.02%.

Tracking Difference (12 Month)

ETF.com Tradability Insight

The average tradability score in the Equity: Developed Markets Ex-U.S. - Small Cap segment is 62 out of 100, with the iShares MSCI EAFE Small-Cap ETF(SCZ) obtaining the highest rating of 88 out of 100.

The iShares MSCI EAFE Small-Cap ETF (SCZ) is the undisputed segment leader when it comes to liquidity. The fund trades 45.32M in daily average volume. Investors should also find ample liquidity in the Schwab International Small-Cap Equity ETF (SCHC), with $6.50M in daily dollar volume.

Use limit orders to trade funds such as the First Trust Developed Markets ex-US Small Cap AlphaDEX Fund(FDTS), due to their double-digit market spreads.

ETF.com/ Block Liquidity

SCZ
5
4
3
2
1
SCHC
5
4
3
2
1
FNDC
5
4
3
2
1
DLS
5
4
3
2
1
GWX
5
4
3
2
1
DDLS
5
4
3
2
1
ISCF
5
4
3
2
1
ISDS
5
4
3
2
1
FDTS
5
4
3
2
1
HSCZ
5
4
3
2
1
This measurement shows how easy it is to trade 25,000 shares of each ETF.

ETF.com Fit Insight

The MSCI World ex USA Small Cap has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.

Investors trying to match a broad market exposure should pay attention to SCZ. This fund obtains a high Fit score and investors should capture market-like returns.

Other funds diverge from the market, by nature of their investment mandates; for example, HSCZ follows a Currency Hedged Vanilla strategy and obtains a low Fit score compared with our neutral benchmark.

Index Methodology