ISCG vs. RZG: How Do These Small Cap ETFs Measure Up to One Another?

Core Insights - The article compares two small-cap growth ETFs: iShares Morningstar Small-Cap Growth ETF (ISCG) and Invesco S&P SmallCap 600 Pure Growth ETF (RZG), highlighting their differences in cost, diversification, and sector focus [4][10]. Fund Comparison - ISCG has a broader portfolio with 971 holdings, while RZG is more concentrated with 131 holdings, leading to a higher share of assets in its top positions [1][2]. - ISCG's sector allocation is primarily in industrials (23%), technology (20%), and healthcare (17%), whereas RZG is more heavily tilted towards healthcare (26%), followed by industrials (18%) and financial services (16%) [1][2]. Performance Metrics - Over the past five years, RZG has outperformed ISCG with a total return of 20% compared to ISCG's 12% [9]. - However, ISCG has shown a better one-year total return as of January 9, 2026 [5]. Cost and Yield - ISCG has a lower expense ratio of 0.06% compared to RZG's 0.35%, making it more affordable for investors [8]. - ISCG also offers a higher dividend yield of 0.6% versus RZG's 0.3%, appealing to income-focused investors [8]. Liquidity and Size - ISCG has a larger asset under management (AUM) of $887 million compared to RZG's $110 million, which may provide greater liquidity for trading [8]. Risk Profile - Both funds have similar risk profiles and have underperformed the S&P 500 over the last five years, with nearly identical maximum drawdowns during market corrections [7].