ETF Research Center

The iShares Currency Hedged MSCI EAFE Small-Cap ETF tracks an index of small-cap stocks from developed markets outside the US and Canada, hedged against movements in the underlying currencies for US investors.

FUND BASICS
Category	International Equities
Fund Sponsor	BlackRock
Website	www.ishares.com
Inception date	Jun 29, 2015
Assets (mns)	$222
Currency	USD
Expense ratio	42 bp
Distributions	Semi-annual

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Market Cap
Index replication
Uses derivatives	Yes
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	1
Wgt avg mkt cap (mns)	$3,451
Large cap (>$10bn)	1.2%
Mid cap ($2-10bn)	64.0%
Small cap (<$2bn)	34.5%
Developed mkts	99.9%
Emerging mkts	0.1%

TOP TEN HOLDINGS
Total	6.5 %
WISDOMTREE GLOBAL EX-US QUALITY DI	2.1 %
STATE STREET SPDR GLOBAL DOW ETF	2.1 %
DIPLOMA PLC	0.3 %
TAIYO YUDEN CO LTD	0.3 %
ROHM CO LTD	0.3 %
BLUESCOPE STEEL LTD	0.3 %
BEAZLEY PLC	0.3 %
YASKAWA ELECTRIC CORP	0.3 %
NGK SPARK PLUG CO LTD	0.3 %
ACCELLERON INDUSTRIES AG	0.3 %

TOP COUNTRY EXPOSURE
	JAPAN	33.8 %
	BRITAIN	10.6 %
	AUSTRALIA	9.0 %
	ISRAEL	3.5 %
	SWITZERLAND	3.5 %
	GERMANY	3.4 %
	FRANCE	3.1 %
	SWEDEN	3.0 %
	ITALY	2.0 %
	SINGAPORE	1.8 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru May 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
11.7%	30.4%	11.4%	11.7%	10.7%

Market Correlations
versus...	Beta	R-squared
S&P500	0.70	55%
MSCI EAFE	0.63	72%
MSCI Emg. Mkts.	0.40	51%

Technical Indicators
Recent close	$42.85
30d moving avg.	$42.99
Annualized volatility	9.5%
Short interest (ETF)	0.3%
Relative strength (RSI)	54

Liquidity measures
Avg. volume (thou.)	27
Turnover	0.5%
Bid/Ask (% of price)	0.15%
ADV underlying (mns)	$14,128

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 3 potential alternatives to the iShares Currency Hedged MSCI EAFE Small-Cap ETF ETF based on the alternatives' overlap in portfolio holdings with HSCZ. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

HSCZ

Expense:

42 bp

ALTAR Score™:

5.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH HSCZ
Ticker	Fund Name	Overlap¹ vs HSCZ (%)	Expense ratio (bp)	Savings vs HSCZ (bp)	ALTAR Score™ (%)	ALTAR vs HSCZ (%)
ISVL	iShares International Developed Small Cap Value Factor ETF	14.9	30	12	8.2	+2.4
GBLD	Invesco MSCI Green Building ETF	2.7	39	3	9.4	+3.5
FTQI	First Trust Nasdaq BuyWrite Income ETF	0.0	75	-33	3.1	-2.8

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2020	2021	2022	2023	2024	2025E	2026E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2024	2025E	2026E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	iShares Currency Hedged MSCI EAFE Small-Cap ETF
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	9.0	%
Divided by: Fwd. P/BV	1.4	x
Less: Expense ratio	42	bp
Equals: ALTAR Score	5.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.67	CATEGORY AVERAGE	1.64

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.