In “International Small-Cap Equities: Poised to Outperform” I described the upside opportunity due to mean reversion, favorable valuations, the prospects for a declining dollar, and a worldwide economic recovery.

The small cap sector is the cheapest since 2000. Historically, this has resulted in an annual return size premium of seven percentage points over subsequent three-year periods.

After reviewing leading ETFs in this sector, iShares MSCI International Small-Cap Multi-Factor ETF (ISCF) is the top choice for a long-term core portfolio allocation.

ISCF is a solid performer with low expenses, excellent risk-adjusted performance, good diversification, and most importantly it is the highest quality ETF in the sector.

Read the full article at SeekingAlpha.