What this ETF is trying to do

The iShares Currency Hedged MSCI EAFE Small-Cap ETF (HSCZ) focuses on small-company stocks in developed markets outside of the U.S. and Canada. A key part of this ETF is "currency hedging." This means it uses financial tools to try to reduce the impact of changes in exchange rates between the U.S. dollar and foreign currencies.

What the numbers show

As of October 9, 2026, the share price was $43.32.

When looking at performance, it is important to distinguish between price return (the change in share price) and total return (which includes the share price change plus distributions).

• Year-to-Date (YTD): The price return is 11.32%, while the total return is 12.81%.

• One Year: The price return is 13.02%, and the total return is 16.80%.

• Three Year: The price return is 59.23%, and the total return is 74.85%.

To put the one-year price return in perspective, if you had invested $10,000 based on the estimated price from roughly one year ago ($38.33), the price-only increase would be worth approximately $1,302.

Income and distribution explanation

This ETF provides cash payments to investors. Over the last 12 months, it had a distribution yield of approximately 3.09%. It paid out distributions twice during that period, and the frequency is described as irregular or less frequent.

It is important for beginners to remember that a high distribution yield alone can be misleading. While distributions provide cash, they do not guarantee that the original investment value will stay the same.

NAV erosion explanation

"NAV erosion" happens when the net asset value of a fund declines over time, often meaning the fund is losing its underlying value.

For this ETF, the erosion-risk score is 100, and the severity is labeled as "good." The data shows "No price erosion detected," and the severe erosion-risk flag is false.

Top Holdings

The portfolio is updated as of October 11, 2026. Because the holdings list is partial, these are the Top Holdings:

• iShares MSCI EAFE Small-Cap ETF (SCZ): 98.8%

• JPY/USD Purchased: 37.61%

• EUR/USD Purchased: 17.72%

• GBP/USD Purchased: 13.49%

• AUD/USD Purchased: 10.62%

Pros

• Strong three-year total return of 74.85%.

• No price erosion detected according to the erosion-risk score.

• Provides a way to invest in international small-cap stocks while hedging currency risk.

Cons

• Distributions are irregular and less frequent.

• The portfolio is heavily concentrated in one other ETF (SCZ).

Beginner takeaway

HSCZ is an ETF for investors who want exposure to small international companies but want to limit the risk of currency swings. It has shown strong price and total returns over the last three years and currently shows no signs of NAV erosion.