Better Buy: How Small-Cap ETFs ISCG and IJT Compare on Fees, Risk, and Income

Core Insights - The iShares S&P Small-Cap 600 Growth ETF (IJT) and the iShares Morningstar Small-Cap Growth ETF (ISCG) target growth-oriented small-cap U.S. stocks but differ in cost, diversification, and trading characteristics [1] Cost & Size Comparison - IJT has an expense ratio of 0.18%, while ISCG has a significantly lower expense ratio of 0.06% [2] - As of January 23, 2026, IJT's 1-year return is 6.47%, compared to ISCG's 14.54% [2] - IJT offers a dividend yield of 0.91%, higher than ISCG's 0.61% [2] - IJT has an AUM of $6 billion, whereas ISCG has an AUM of $808 million [2] Performance & Risk Comparison - Over the past five years, IJT's maximum drawdown is -29.23%, while ISCG's is -41.47% [4] - A $1,000 investment in IJT would grow to $1,193 over five years, compared to $1,059 for ISCG [4] Portfolio Composition - ISCG holds 971 small-cap growth stocks, with sector weights of 23% in industrials, 20% in technology, and 17% in healthcare [5] - IJT contains 348 stocks, with technology as its top sector at around 20% [6] - Both funds avoid leverage, currency hedges, or other structural complexities [6] Investment Implications - ISCG is characterized as a higher-risk, higher-reward investment, having outperformed IJT over the last year but with greater volatility indicated by a higher beta [7] - The fee structure difference means investors pay $6 annually for every $10,000 invested in ISCG versus $18 for IJT, which could lead to significant savings over time [8][9]