The iShares Morningstar Small-Cap Growth ETF (ISCG +1.02%) features a lower cost and broader portfolio, while the iShares S&P Small-Cap 600 Growth ETF (IJT +1.47%) offers a higher yield, milder drawdowns, and greater assets under management.
Both ISCG and IJT aim to provide exposure to U.S. small-cap growth stocks, but they take different approaches in portfolio construction, costs, and risk characteristics. This comparison examines their fees, performance, risk, and holdings to help investors determine which may better fit their objectives.
Snapshot (cost & size)
| Metric | ISCG | IJT |
|---|---|---|
| Issuer | IShares | IShares |
| Expense ratio | 0.06% | 0.18% |
| 1-yr return (as of 2026-03-11) | 24.7% | 18.3% |
| Dividend yield | 0.6% | 0.8% |
| Beta | 1.3 | 1.2 |
| AUM | $923.8 million | $6.8 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.
ISCG is more affordable with a 0.06% expense ratio, while IJT charges 0.18% but compensates with a higher 0.8% dividend yield versus ISCG’s 0.6%—a potential draw for income-focused investors.
NYSEMKT: ISCG
Key Data Points
Performance & risk comparison
| Metric | ISCG | IJT |
|---|---|---|
| Max drawdown (5 y) | -41.5% | -29.2% |
| Growth of $1,000 over 5 years | $1,072 | $1,091 |
NASDAQ: IJT
Key Data Points
What's inside
IJT tracks a portfolio of 355 U.S. small-cap growth companies, with sector exposures led by industrials (19%), technology (19%), and healthcare (14%). Its largest holdings—Interdigital (IDCC -1.41%), Moog Inc Class A (MOG-A), and CareTrust REIT (CTRE +1.09%)—each represent just over 1% of assets, and the fund’s 25.6-year history highlights its longevity and liquidity. IJT’s portfolio is more concentrated than some peers, but remains broadly diversified within the small-cap growth space.
ISCG, by contrast, holds 963 stocks, creating a broader spread across the small-cap growth landscape. Its allocations lean heavier into industrials (25%), technology (21%), and healthcare (16%), with top holdings like Lumentum (LITE +3.79%), ATI (ATI +0.67%), and RBC Bearings (RBC +1.39%) each making up less than 2% of assets. Both funds avoid leverage, currency hedges, and ESG overlays, but ISCG’s broader diversification could appeal to those seeking more comprehensive coverage.
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What this means for investors
Small-cap growth stocks are where the market's biggest winners and most painful losses can often be found. These smaller, faster-growing companies can deliver outsized returns for patient investors, but they demand real tolerance for stomach-dropping volatility. IJT and ISCG both plant their flags squarely in this territory, targeting U.S. small-cap stocks with above-average growth characteristics.
The difference lies in how wide they cast their nets. IJT holds around 335 stocks drawn from the S&P SmallCap 600, which screens for profitability before admission -- a quality gate that weeds out financially fragile companies. ISCG holds nearly 1,000 stocks using Morningstar's broader methodology, accepting far more speculative names. That breadth carries a cost: ISCG has historically suffered deeper drawdowns during market downturns.
For investors who want small-cap growth with a quality filter underneath, IJT is the stronger choice -- its profitability screen has historically cushioned the worst selloffs, and its 10-year annualized return edges ahead of ISCG's. ISCG is the better fit for investors who want the broadest possible small-cap growth exposure and can absorb sharper short-term pain for the chance to own nearly every growth-oriented small company in the market. ISCG has cheaper fees, but history suggests IJT's quality screen has been worth paying for.
