Small-Cap ETFs: ISCB Outperforms, but SPSM Yields More

Core Insights - The article compares two small-cap ETFs: iShares Morningstar Small-Cap ETF (ISCB) and State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM), highlighting their differences in portfolio breadth, costs, and performance [4]. Group 1: ETF Overview - ISCB tracks 1,578 small-cap U.S. stocks, with sector weights in industrials (19%), financial services (17%), and healthcare (13.9%) [2]. - SPSM holds 607 U.S. small-cap stocks, with a sector tilt towards financial services (18%), industrials (16%), and technology (15%) [1]. Group 2: Performance and Cost - ISCB has performed slightly better over the last five years, showing more growth and a smaller maximum drawdown compared to SPSM [7]. - SPSM offers a lower expense ratio and a higher dividend yield, making it attractive for cost-conscious investors [3][7]. Group 3: Sector Exposure - ISCB's inclusion of healthcare among its top sectors may appeal to investors looking for defensive opportunities, while SPSM's higher concentration in technology may attract those wanting to capitalize on tech sector trends [8].