Which iShares Small Cap Growth Stock ETF Is Best for Investors: ISCG or IJT?
Key Points
iShares Morningstar Small-Cap Growth ETF features a significantly lower expense ratio than iShares S&P Small-Cap 600 Growth ETF.
iShares S&P Small-Cap 600 Growth ETF has a more concentrated portfolio with 601 fewer holdings than its Morningstar-indexed counterpart.
Both funds lean heavily into industrials and technology, but the iShares S&P Small-Cap 600 Growth ETF has shown a smaller maximum drawdown over the last five years.
The iShares Morningstar Small-Cap Growth ETF (NYSEMKT:ISCG) provides a low-cost, broad-market approach to small-cap growth, while the iShares S&P Small-Cap 600 Growth ETF (NASDAQ:IJT) offers a more concentrated portfolio with higher trading liquidity.
Both funds aim to capture the upside of emerging American companies, but utilize different indexes. While one casts a wide net across nearly 1,000 stocks, the other follows a more restrictive selection process based on S&P criteria, impacting concentration and risk for growth-oriented investors.
Snapshot (cost & size)
| Metric | ISCG | IJT |
|---|---|---|
| Issuer | iShares | iShares |
| Expense ratio | 0.06% | 0.18% |
| 1-yr return (as of May 6, 2026) | 35.01% | 32.70% |
| Dividend yield | 0.58% | 0.77% |
| Beta | 1.28 | 1.18 |
| AUM | $947.3 million | $7.3 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The one-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The iShares Morningstar Small-Cap Growth ETF is the more affordable option with a low 0.06% expense ratio. While the iShares S&P Small-Cap 600 Growth ETF has a higher expense ratio of 0.18%, it also offers a higher yield for those seeking income.
Performance & risk comparison
Performance data show that both funds have benefited from recent tailwinds, though their paths differ. The iShares S&P Small-Cap 600 Growth ETF has historically shown better capital preservation during downturns, while the iShares Morningstar Small-Cap Growth ETF offers broader market exposure.
| Metric | ISCG | IJT |
|---|---|---|
| Max drawdown (5 yr) | (41.47%) | (29.20%) |
| Growth of $1,000 over 5 years (total return) | $1,331 | $1,273 |
What's inside
The iShares S&P Small-Cap 600 Growth ETF (IJT) tracks 353 companies with strong growth traits. Sector weights include industrials at 20%, technology at 19%, and healthcare at 14%. Its largest positions include Sanmina (1.40%), Viavi Solutions (1.29%), and FormFactor (1.29%). Launched in 2000, it has paid $1.25 per share over the trailing 12 months.
Conversely, the iShares Morningstar Small-Cap Growth ETF (ISCG) monitors 954 stocks, allocating 24% to industrials, 20% to technology, and 16% to healthcare. Top holdings include Lumentum at 2.08%, ATI at 0.67%, and APi Group at 0.63%. Launched in 2004, it has a trailing-12-month dividend of $0.35 per share.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
The ISCG ETF has been around since 2000 and has delivered an annualized total return of 9.44%. The IJT ETF has operated since 2004, delivering 9.45% annualized returns. The similarity of their returns is somewhat remarkable. That said, the two ETFs operate very differently, and I would lean toward IJT for a couple of key reasons.
First, I like that the stocks in IJT have to pass a profitability filter to be included in the ETF. Meanwhile, a decent handful of ISCG stocks are cash-burning upstarts with much more volatile prospects. This plays a large part in explaining why IJT’s five-year drawdown is much smaller than ISCG’s. This lower stability is the second reason I would lean toward IJT, as its small drawdown and lower beta suggest a smoother ride for investors.
Lastly, while IJT costs a little more than ISCG at 0.18% versus 0.06%, it offsets this difference with a higher dividend yield. Furthermore, a 0.18% expense ratio is by no means outrageous, so investors aren’t leaving a ton on the table by paying up slightly for the more stable option between these two small-cap growth stock ETFs.
Should you buy stock in iShares Trust - iShares S&P Small-Cap 600 Growth ETF right now?
Before you buy stock in iShares Trust - iShares S&P Small-Cap 600 Growth ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and iShares Trust - iShares S&P Small-Cap 600 Growth ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $473,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,204,650!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of May 6, 2026.
Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends APi Group, Lumentum, and Viavi Solutions. The Motley Fool has a disclosure policy.
Recommended Articles
Comments (0)
Click the $ button, enter the symbol, and select to link a stock, ETF, or other ticker.