What Is the ISCG ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
A low-cost ETF that offers broad diversification across US small-cap growth stocks. Its deep roster of holdings helps manage volatility while pursuing growth.
SubscribeWhat Is This ETF?
The fund tracks the Morningstar US Small Cap Broad Growth Extended Index and invests in US small-cap companies with clear revenue and earnings growth. It carries higher volatility than large-cap stocks, but aims for excess returns over the long term.
It suits long-term investors who want to increase their allocation to US small caps for more aggressive portfolio growth.
It is a passively managed (index-tracking) ETF launched by iShares in 2004.
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | Morningstar US Small Cap Broad Growth Extended Index |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Semiannual |
| Dividend Frequency | Quarterly |
| Total Expense Ratio | 0.06% |
The fund selects US small-cap stocks with strong growth momentum. It holds a very broad range of securities so that it is not concentrated in any single name, which spreads out the company-specific risk typical of small caps and tracks the index's performance efficiently.
- A relatively low total expense ratio
- Wide diversification through a broad roster of holdings
Size and Costs
Assets under management (AUM) stand at $981.8M, and the expense ratio is 0.06% per year.
Its management fee remains lower than those of comparable small-cap growth ETFs such as IWO and VBK, which makes it cost-efficient for long-term investing.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe small-cap growth segment tends to rebound sharply during rate-cutting cycles or at the early stage of an economic recovery. Recently, small and mid-sized companies in the technology and industrials sectors have been leading innovation, supporting a positive return trend.
Inflows accelerate when risk appetite spreads across the market, and smart money tends to focus on the segment especially when valuations look attractive relative to large caps. Whether the abundant liquidity typical of small caps continues to be supplied is also closely watched.
Strengths and Weaknesses
Low management fees and broad diversification are its greatest strengths, but the high volatility and economic sensitivity typical of small caps are factors investors should keep in mind.
💪 Key Strengths
⚠️ Points of Caution
Alternative ETFs and Related Products
The VUG, IWF, and IVW shown in the table are growth ETFs centered on large-cap stocks with big market capitalizations, while the key difference is that ISCG focuses on relatively smaller small-cap companies. Direct alternatives within the small-cap growth segment include IWO and VBK, and SLYG and VTWG, which use different index construction methods, can also be considered depending on individual investment goals.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VUG | Vanguard Morningstar Growth ETF | $85.06 | -3.0% | $227.5B | 0.03% | 0.41% | +2.8% |
 IWF | iShares Russell 1000 Growth ETF | $117.61 | -2.9% | $123.9B | 0.18% | 0.37% | -2.8% |
 IVW | iShares S&P 500 Growth ETF | $134.46 | -2.7% | $76.8B | 0.18% | 0.36% | +8.1% |
 SCHG | Schwab U.S. Large-Cap Growth ETF | $34.32 | -2.5% | $63.3B | 0.04% | 0.41% | +3.4% |
 SPYG | State Street SPDR Portfolio S&P 500 Growth ETF | $116.42 | -2.6% | $55.5B | 0.04% | 0.5% | +8.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| LITE | Lumentum Holdings Inc | 0.02% | $840.70 | -8.6% | $76.2B | - | - |
| OKTA | Okta Inc | 0.01% | $208.24 | -6.1% | $36.4B | 125.8 | - |
 ATI | ATI Inc | 0.01% | $165.59 | -5.4% | $22.5B | 41.3 | - |
 GH | Guardant Health Inc | 0.01% | $178.80 | -3.5% | $24.0B | - | - |
 RBC | RBC Bearings Inc | 0.01% | $462.21 | -6.8% | $14.6B | 45.7 | - |
 ITT | ITT Inc | 0.01% | $198.50 | -2.0% | $17.7B | 39.0 | 0.75% |
 ROKU | Roku Inc | 0.01% | $155.12 | -0.8% | $23.0B | 66.3 | - |
| RVMD | Revolution Medicines Inc | 0.01% | $191.31 | +0.6% | $41.0B | - | - |
 STRL | Sterling Infrastructure Inc | 0.01% | $345.91 | -7.4% | $10.6B | 19.4 | - |
 MTSI | MACOM Technology Solutions Holdings Inc | 0.01% | $234.39 | -7.1% | $17.9B | 75.4 | - |
Investor Checkpoints
Here are the key factors to check before investing in ISCG. Small-cap stocks move to a different rhythm than large caps, so it is important to fully understand costs, volatility, and the characteristics of the holdings.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Assess the impact of costs on long-term returns | On the low side |
| 📊 Sector Composition | Check the weights of major sectors such as industrials and information technology | Diversified |
| 📉 Volatility Level | Review past bear-market records and maximum drawdown | High |
| 💧 Trading Liquidity | Bid-ask spread and average daily trading volume | Good |
The fund can fall more sharply than large caps during an economic downturn, and in periods of rising interest rates, small-cap growth companies with heavy financing costs may underperform.
It is a suitable tool for investors who want low-cost exposure to the US small-cap growth universe. However, it is recommended for long-term investors who can withstand the portfolio's high volatility.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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