iShares Small-Cap Europe ETF Switches to MSCI Index

The iShares MSCI Europe Small-Cap ETF (NasdaqGM: IEUS) has switched to an index from MSCI as part of the ETF’s recent change in investment objective.

Last week, BlackRock (NYSE: BLK), parent company of iShares, the world’s largest ETF issuer, said IEUS was shifting its focus to European small-caps after previously being known as the iShares Developed Small-Cap ex North America ETF. With the new index and focus on European small-caps, IEUS has dropped is Australian and Asian exposure, which previously accounted for a significant portion of the ETF’s weight.

The $38.3 million IEUS is now benchmarked to the MSCI Europe Small Cap Index after previously tracking the FTSE Developed Small Cap ex-North America Index. IEUS, which charges 0.4% per year, is home to 843 stocks with an almost 34.8% weight to the U.K., according to iShares data.

Germany is the ETF’s only other double-digit country weight with Switzerland, Sweden and France rounding out the top-five geographic exposures.

“We believe that the breadth and quality of our index offering, and the power of our internationally recognized brand are the key factors driving the increasing adoption of MSCI indexes by ETF providers,” said Diana Tidd, Managing Director and Head of the MSCI Index Business in the Americas, in a statement. “We are excited to further strengthen our relationship with iShares.”