SMEZ tracks small-cap Eurozone stocks taken from the STOXX Europe Small 200 Index.
Alternatively, for broader international developed market exposure, the iShares MSCI EAFE Small-Cap ETF (NYSEArca: SCZ) tracks small-cap stocks taken from the Europe, Australasia and the Far East, or EAFE. SCZ includes a 53.8% tilt toward Europe, 25.3% Japan and 6.7% Australasia. [Japan ETFs: Rising Suns, Attractive Valuations]
The Bank of Japan has been implementing its own loose monetary policies ever since Shinzo Abe took power in late 2012. Australia’s central also recently cut its benchmark rates to a record low earlier in February. [It Could be a Big Day for Australia ETFs]
However, the only drawback is that these small-cap ETFs do not hedge currency risks, so any further depreciation in the foreign currency could weigh on overall returns.
For more information on the international markets, visit our global ETFs category.
Max Chen contributed to this article.