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SCZ - ETF AI Analysis

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SCZ

iShares MSCI EAFE Small-Cap ETF (SCZ)

Rating:58Neutral
Price Target:
SCZ, the iShares MSCI EAFE Small-Cap ETF, has a solid but not outstanding overall rating, reflecting a mix of strong and weaker small-cap holdings. Higher-quality positions like Enlight Renewable Energy, Beazley, and Gaztransport et technigaz support the fund’s rating with strong financial performance, positive earnings calls, and generally favorable valuations, though sometimes with short-term technical risks. On the other hand, weaker names such as Bluescope Steel and Pilbara Minerals, which face financial performance challenges and valuation concerns, hold back the overall score, and investors should also note the risk that several holdings show signs of overvaluation or bearish/overbought technical trends.
Positive Factors
Broad International Diversification
The fund spreads its investments across many countries outside the U.S., which helps reduce the impact of problems in any single market.
Wide Sector Spread
Holdings are spread across many different sectors, so the ETF is not overly dependent on the fortunes of just one industry.
Generally Strong Recent Performance
The ETF has shown positive performance over the year so far and in recent months, suggesting its strategy has been working in the current market.
Negative Factors
Heavy Tilt Toward Japan
A large share of the portfolio is invested in Japanese stocks, so the fund is sensitive to economic and market conditions in Japan.
Higher Expense Ratio for a Broad ETF
The fund’s ongoing fee is on the higher side compared with many broad index ETFs, which slightly reduces investors’ net returns over time.
Small-Cap Volatility Risk
Because the ETF focuses on smaller companies, its share price can be more volatile and sensitive to market downturns than large-cap funds.

SCZ vs. SPDR S&P 500 ETF (SPY)

SCZ Summary

The iShares MSCI EAFE Small-Cap ETF (SCZ) tracks the MSCI EAFE Small Cap Index, which focuses on smaller companies in developed markets outside North America, mainly in countries like Japan, the UK, and Australia. It owns many different businesses across industries such as industrials, real estate, and materials, including names like Furukawa Electric and Diploma. Investors might consider SCZ to add international diversification and tap into the growth potential of smaller companies. However, small-cap stocks can be more volatile, so the ETF’s value can go up and down more sharply than the overall market.
How much will it cost me?The iShares MSCI EAFE Small-Cap ETF (SCZ) has an expense ratio of 0.40%, which means you’ll pay $4 per year for every $1,000 invested. This expense ratio is slightly higher than average because the fund is passively managed but focuses on a niche category of international small-cap stocks, which can require more specialized tracking. Overall, it’s a reasonable cost for the diversification and growth potential it offers.
What would affect this ETF?The SCZ ETF, which focuses on small-cap companies in developed markets outside North America, could benefit from economic growth in regions like Europe and Asia, as smaller companies often thrive during periods of innovation and expansion. However, it may face challenges from rising interest rates, which can increase borrowing costs for small-cap firms, and global economic uncertainty, which could lead to higher volatility in these markets. Sector-specific trends, such as advancements in technology or shifts in industrial demand, could also impact the ETF's performance positively or negatively.

SCZ Top 10 Holdings

SCZ leans heavily into industrial and materials names, with Japanese small caps like Furukawa Electric and Mitsui Kinzoku quietly pulling the fund higher on steady, positive trends. Australia’s Pilbara Minerals has been a rising star, adding some spark from the resources side, while UK names such as Diploma and Beazley show strong fundamentals but more mixed trading, occasionally tapping the brakes. Enlight Renewable Energy adds a greener, fast-climbing note. Overall, performance is driven by a diversified mix of developed-market small caps outside North America, with no single stock dominating the story.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Furukawa Electric Co0.53%$77.28M¥3.16T735.00%
73
Outperform
Mitsui Kinzoku Co0.51%$74.21M¥2.86T468.34%
69
Neutral
Resonac Holdings Corporation0.49%$71.97M¥2.90T454.70%
72
Outperform
PLS Group0.39%$57.67MAU$20.17B358.20%
59
Neutral
Diploma0.34%$50.18M£9.31B68.98%
66
Neutral
Enlight Renewable Energy0.32%$47.06M$12.55B397.85%
77
Outperform
Accelleron Industries AG0.29%$42.20MCHF8.21B103.83%
73
Outperform
Beazley0.28%$41.36M£7.56B44.03%
76
Outperform
Bluescope Steel 0.26%$37.74MAU$13.20B35.52%
54
Neutral
IMI plc0.25%$36.93M£6.68B48.98%
75
Outperform

SCZ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
81.30
Positive
100DMA
81.25
Positive
200DMA
77.89
Positive
Market Momentum
MACD
0.94
Negative
RSI
63.71
Neutral
STOCH
87.14
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SCZ, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 83.62, equal to the 50-day MA of 81.30, and equal to the 200-day MA of 77.89, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 63.71 is Neutral, neither overbought nor oversold. The STOCH value of 87.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCZ.

SCZ Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$14.59B0.40%
58
Neutral
$184.64B0.07%
65
Neutral
$77.25B0.32%
66
Neutral
$30.34B0.33%
67
Neutral
$11.56B0.20%
65
Neutral
$10.65B0.24%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SCZ
iShares MSCI EAFE Small-Cap ETF
85.83
19.88
30.14%
IEFA
iShares Core MSCI EAFE ETF
EFA
iShares MSCI EAFE ETF
EFV
iShares MSCI EAFE Value ETF
ESGD
iShares ESG Aware MSCI EAFE ETF
JIRE
JPMorgan International Research Enhanced Equity ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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