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ISO

$5.06-1.56%Small Caps43/100
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iShares S&P/ASX Small Ordinaries ETF · BlackRock

Data as at 29 March 2026

TL;DR

Tracks Australian companies ranked approximately 101st to 300th on the ASX by market cap — the mid and small-cap segment below the ASX 100.

MER (Annual Fee)
0.25%
#1 lowest in Small Caps
1Y Return
+10.3%
3Y Return (p.a.)
+7.3%
Dividend Yield
1.83%
Trailing 12 months
AUM
$193.4M
Assets under management
Avg Daily Turnover
$150K
Avg shares × unit price
Unit Price
$5.06
As at 29 March 2026
Provider
BlackRock
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Strategy

Follows the S&P/ASX Small Ordinaries Index. These companies are typically growing faster than the large blue chips but have less liquidity and more earnings variability. Managed by iShares (BlackRock).

Top Holdings

Key Fact

Australian small-cap companies have historically delivered higher long-run returns than large-caps over very long periods, though they can underperform for 5+ years before outperforming. ISO provides a simple way to access this part of the market.

Suited for

Long-term investors who want exposure to the small-cap premium and can tolerate higher short-term volatility. Small-caps can significantly outperform the ASX 200 over 15+ year investment periods.

Risks

Small-caps are more volatile than large-caps and tend to fall harder during market downturns. They also have less analyst coverage and lower liquidity than ASX 100 companies.

ISO Comparisons

ETFCheck Score43/100
Fees (40%)63
Fund Size (25%)22
Liquidity (20%)42
Yield (15%)27
How scores are calculated →
Other Small Caps ETFs
VSO
0.30% MER
56
VISM
0.33% MER
46View all Small Caps ETFs →

Frequently Asked Questions - ISO

What exactly does the S&P/ASX Small Ordinaries Index include, and how small are these companies?+
ISO tracks the S&P/ASX Small Ordinaries Index, which captures approximately 200 companies ranked between positions 101 and 300 in the ASX by market capitalisation. These typically range from around $300 million to $3 billion in market cap, sitting below blue chips but above true micro-caps. Holdings span sectors like mining, technology, and consumer discretionary. At a 0.25% MER, ISO offers the cheapest broad ASX small-cap exposure, making it an efficient way to capture Australia's small-cap return premium.
How does ISO compare to VSO for Australian small-cap exposure in an SMSF?+
ISO and VSO target similar companies but use different index methodologies - S&P versus MSCI - creating subtle weighting and constituent differences. ISO's 0.25% MER undercuts VSO's 0.30%, saving $25 annually per $50,000 invested. However, VSO has delivered a slightly higher one-year return of 9.2% versus ISO's 8.4%, and offers a better yield at 2.42% compared to 2.15%. For SMSF trustees, both provide partially franked distributions, so the choice often comes down to index preference and platform availability.
What are the key risks of holding ISO during an Australian economic downturn?+
ASX small caps are significantly more volatile than large caps, and ISO can drawdown 30-40% during recessions as smaller companies face tighter credit conditions and weaker earnings. Many ISO holdings are in cyclical sectors like mining services, property developers, and discretionary retail, which amplify economic sensitivity. Liquidity risk also increases, as underlying small-cap stocks trade with wider bid-ask spreads during market stress. Australian investors should treat ISO as a long-term satellite allocation rather than a core holding, ideally with a 7-10 year horizon.
Do ISO's distributions carry franking credits for Australian tax purposes?+
Yes, ISO's distributions typically carry partial franking credits because many underlying ASX small-cap companies pay franked dividends from Australian profits. The franking level varies each distribution period depending on the dividend mix from holdings. For SMSF accounts in pension phase, these franking credits can generate valuable refundable tax offsets via the ATO. ISO's 2.15% yield combined with partial franking makes it more tax-efficient than international small-cap alternatives like VISM, where distributions are entirely unfranked.