Small-Cap ETFs: ISCG Boasts Lower Fees and Better Recent Performance, but SLYG Has Greater Liquidity and a Lower Risk Profile

Core Insights - The State Street SPDR S&P 600 Small Cap Growth ETF (SLYG) and the iShares Morningstar Small-Cap Growth ETF (ISCG) provide exposure to U.S. small-cap growth stocks, with ISCG noted for its lower cost, broader portfolio, and higher recent returns, despite a steeper historical drawdown [1][2]. Cost and Size Comparison - SLYG has an expense ratio of 0.15% and assets under management (AUM) of $4.0 billion, while ISCG has a lower expense ratio of 0.06% and AUM of $881.5 million [3][4]. - The one-year return for SLYG is 18.3%, compared to 24.7% for ISCG, with SLYG offering a slightly higher dividend yield of 0.8% versus ISCG's 0.6% [3][4]. Performance and Risk Analysis - Over the past five years, SLYG experienced a maximum drawdown of -29.18%, while ISCG had a higher drawdown of -37.80% [5]. - The growth of $1,000 invested over five years would yield $1,086 for SLYG and $1,072 for ISCG, indicating SLYG's slightly better performance in this period [5]. Portfolio Composition - ISCG tracks a Morningstar small-cap growth index with 963 stocks, heavily weighted towards industrials (25%), followed by technology (21%) and healthcare (16%) [6]. - SLYG holds 339 stocks with a more balanced distribution across industrials (19%), technology (19%), and healthcare (17%) [7]. - Both funds maintain a diversified approach with modest concentration in top holdings, avoiding leverage and currency hedges [7].