ETF Research Center

The iShares FactorSelect MSCI Intl Small-Cap ETF tracks an index of international small-cap firms. Stocks are selected and weighted to increase exposure to 4 factors (quality, value, momentum and small size) while maintaining similar characteristics of the MSCI World ex USA Small Cap Index.

FUND BASICS
Category	International Equities
Fund Sponsor	BlackRock
Website	www.ishares.com
Inception date	Apr 28, 2015
Assets (mns)	$90
Currency	USD
Expense ratio	40 bp
Distributions	Semi-Annually

FUND STRUCTURE
Regulation	Open-End Investment Company
Custodian
Weighting	Multi-Factor
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	679
Wgt avg mkt cap (mns)	$1,812
Large cap (>$10bn)	0.3%
Mid cap ($2-10bn)	40.7%
Small cap (<$2bn)	59.0%
Developed mkts	99.6%
Emerging mkts	0.4%

TOP TEN HOLDINGS
Total	9.0 %
LOGITECH INTERNATIONAL-REG	1.3 %
GN STORE NORD A/S	1.1 %
ASM INTERNATIONAL N.V.	1.0 %
ASR NEDERLAND NV	0.9 %
HOWDEN JOINERY GROUP PLC	0.9 %
TATE & LYLE PLC	0.8 %
EURONEXT NV	0.8 %
NORTHERN STAR RESOURCES LTD	0.7 %
DIALOG SEMICONDUCTOR PLC	0.7 %
CHARTER HALL GROUP	0.7 %

TOP COUNTRY EXPOSURE
	JAPAN	19.7 %
	BRITAIN	16.9 %
	AUSTRALIA	9.9 %
	CANADA	9.2 %
	SWITZERLAND	4.4 %
	NETHERLANDS	2.9 %
	ITALY	2.7 %
	BELGIUM	2.6 %
	HONG KONG	2.1 %
	GERMANY	2.0 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
19.7%	11.5%	--	--	6.9%

Market Correlations
versus...	Beta	R-squared
S&P500	0.85	70%
MSCI EAFE	1.03	86%
MSCI Emg. Mkts.	0.76	75%

Technical Indicators
Recent close	$30.87
30d moving avg.	$30.12
Annualized volatility	12.3%
Short interest (ETF)	3.8%
Relative strength (RSI)	75

Liquidity measures
Avg. volume (thou.)	11
Turnover	0.4%
Bid/Ask (% of price)	0.25%
ADV underlying (mns)	$1,919

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the iShares FactorSelect MSCI Intl Small-Cap ETF based on the alternatives' overlap in portfolio holdings with ISCF. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

ISCF

Expense:

40 bp

ALTAR Score™:

6.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH ISCF
Ticker	Fund Name	Overlap¹ vs ISCF (%)	Expense ratio (bp)	Savings vs ISCF (bp)	ALTAR Score™ (%)	ALTAR vs ISCF (%)
AVDV	Avantis International Small Cap Value	18.4	36	4	7.0	+0.2
GWX	SPDR International SmallCap	17.5	40	0	4.6	-2.2
ISDS	Invesco Strategic Developed ex-US Small Company	17.4	35	5	5.1	-1.8
SCHC	Schwab Intl Small-Cap Equity	17.0	12	28	6.4	-0.5
EWUS	iShares MSCI United Kingdom Small Cap	16.9	59	-19	7.3	+0.5
IEUS	iShares MSCI Europe Small Cap	16.2	40	0	6.0	-0.9
DDLS	WisdomTree Dynamic Currency Hedged Int'l SmallCap	16.1	43	-3	8.3	+1.4
FNDC	Schwab Fundamental Intl Small Cap	15.9	39	1	4.5	-2.4
SCZ	iShares MSCI EAFE Small Cap	15.9	39	1	6.0	-0.9
DLS	WisdomTree Int'l SmallCap Dividend	15.8	58	-18	8.1	+1.2
PDN	Invesco FTSE RAFI Developed Mkts ex-US Small-Mid Cap	14.5	49	-9	6.4	-0.4
FDTS	First Trust Dev Mkts ex-US Small Cap Alpha	13.5	80	-40	9.1	+2.2
DFJ	WisdomTree Japan Small Cap Dividend	13.3	58	-18	7.8	+0.9
DXJS	WisdomTree Japan Hedged Small	13.2	58	-18	7.9	+1.0
VSS	Vanguard FTSE All World ex-US Small Cap	12.7	12	28	6.5	-0.4
DFE	WisdomTree Europe Small Cap Dividend	12.4	58	-18	8.7	+1.9
SCJ	iShares MSCI Japan Small Cap	12.1	47	-7	6.1	-0.7
TLTD	FlexShares Mngstr Developed Mkts ex-US Factor Tilt	10.2	39	1	8.3	+1.4
DDEZ	WisdomTree Dynamic Currency Hedged Europe Equity	9.4	43	-3	6.7	-0.2
EUSC	WisdomTree Europe Hedged SmallCap Equity Fund	8.8	58	-18	7.4	+0.5

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

	2014	2015	2016	2017	2018	2019E	2020E
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

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	iShares FactorSelect MSCI Intl Small-Cap
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	9.3	%
Divided by: Fwd. P/BV	1.3	x
Less: Expense ratio	40	bp
Equals: ALTAR Score	6.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.65	CATEGORY AVERAGE	1.63

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.