Investing in Small-Cap ETFs: ISCG's Lower Fees or SLYG's Higher Dividend?

Core Insights - The State Street SPDR S&P 600 Small Cap Growth ETF (SLYG) and the iShares Morningstar Small-Cap Growth ETF (ISCG) differ in cost, portfolio breadth, and historical performance, with ISCG having lower fees and broader industrial exposure but higher volatility over time [2][3] Cost and Size Comparison - SLYG has an expense ratio of 0.15% and AUM of $3.6 billion, while ISCG has a lower expense ratio of 0.06% and AUM of $807.86 million [4] - The one-year return for SLYG is 8.96%, compared to ISCG's 18.02%, while SLYG offers a slightly higher dividend yield of 0.86% versus ISCG's 0.61% [4][5] Performance and Risk Analysis - Over five years, SLYG experienced a maximum drawdown of -29.17%, while ISCG faced a deeper drawdown of -41.49% [6] - The growth of $1,000 over five years is $1,210 for SLYG and $1,095 for ISCG, indicating SLYG's better performance in this period [6] Portfolio Composition - ISCG tracks 971 U.S. small-cap growth stocks, with sector weights led by industrials (26%), technology (18%), and healthcare (17%), and its largest holdings are under 1% of the fund [7] - SLYG holds 334 stocks with a sector tilt towards industrials (20.5%), technology (19%), and healthcare (16%), focusing on firms with strong sales growth and earnings momentum [8] Investment Implications - Investing in small-cap ETFs like SLYG and ISCG provides exposure to a broad range of small-cap stocks, which are generally more volatile but offer greater upside potential [10]