IWN expenses a better expense ratio and yields barely lower than ISCV
IWN has delivered a stronger 1-year complete return however skilled a deeper five-year drawdown
IWN holds extra shares and tilts extra towards actual property, whereas ISCV has larger publicity to shopper cyclicals
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The iShares Russell 2000 Worth ETF (NYSEMKT:IWN) expenses 4 instances the expense ratio of the iShares Morningstar Small-Cap Worth ETF (NYSEMKT:ISCV), however affords broader holdings, larger current returns, and a modest tilt towards actual property over consumer-focused sectors.
Each the iShares Morningstar Small-Cap Worth ETF (ISCV) and the iShares Russell 2000 Worth ETF (IWN) observe U.S. small-cap worth shares, aiming to seize corporations buying and selling at decrease costs relative to fundamentals. This comparability focuses on their prices, efficiency, liquidity, and portfolio make-up to assist make clear which fund’s strategy could enchantment, relying on private priorities.
Metric
ISCV
IWN
Issuer
iShares
iShares
Expense ratio
0.06%
0.24%
1-yr return (as of 2026-01-05)
11.9%
13.8%
Dividend yield
2.0%
1.7%
AUM
$586.9 million
$12.4 billion
ISCV is extra inexpensive, charging simply 0.06% in annual charges in comparison with IWN’s 0.24%, and likewise delivers a barely larger yield, which can enchantment to cost-conscious, or income-focused, traders.
Metric
ISCV
IWN
Max drawdown (5 y)
-25.35%
-26.71%
Progress of $1,000 over 5 years
$1,657
$1,534
IWN tracks a Russell index of small-cap U.S. shares with worth traits, holding 1,407 securities as of its 25.4-year historical past. Its sector allocation leans most closely on monetary providers (26%), actual property (12%), and industrials (11%), with high holdings together with Blk Csh Fnd Treasury Sl Company (XTSLA) 0.99%, Echostar (NASDAQ:SATS) 0.98%, and Hecla Mining (NYSE:HL) 0.61%.
ISCV additionally focuses on U.S. small-cap worth, however with a barely completely different sector combine: monetary providers (21%), shopper cyclical (16%), and industrials (13%). Amongst its 1,101 holdings, high positions are Sandisk (NASDAQ:SNDK) 0.93%, Blk Csh Fnd Treasury Sl Company (XTSLA) 0.89%, and Rocket Corporations (NYSE:RKT) 0.60%. Neither fund introduces leverage, ESG, or different structural quirks.
For extra steering on ETF investing, take a look at the total information at this hyperlink.
Each of those funds share many comparable traits, nonetheless, there are some key variations traders ought to take into account.
For instance, whereas each funds goal small-cap shares, there are variations of their holdings. IWN leans extra closely on the monetary sector, with 26% of its general holdings in that trade. ISCV, by comparability, has solely 21% of its complete holdings within the monetary sector.
One other key distinction is price. IWN has an expense ratio of 0.24%. That is not dangerous, however ISCV boasts a a lot decrease expense ratio of 0.06%. To place this in context, somebody who invests $10,000 in IWN would anticipate to pay $24 in annual charges; the identical investor would pay $6 in annual charges for $10,000 value of ISCV shares.
Granted, this quantity is not earth-shattering, however for cost-conscious traders it will possibly make it distinction.
Lastly, there are two different key factors of divergence: dividend yield and liquidity.
ISCV affords a barely larger dividend yield at 2.0% versus 1.7% for IWN — making ISCV a better option for these searching for revenue from their funding. As for liquidity, IWN has over $12 billion in property beneath administration. ISCV, against this, has about $600 million. Whereas $600 million ought to present ample liquidity for traders to commerce out and in of shares, it’s close to a stage the place bid-ask spreads may start to widen, notably throughout a correction or bear market. Due to this fact, traders involved with liquidity threat is perhaps clever to pick out IWN.
Expense ratio: The annual charge, as a proportion of property, {that a} fund expenses to cowl working prices.Dividend yield: The annual dividends paid by a fund, expressed as a proportion of its present worth.Complete return: The funding’s worth change plus all dividends and distributions, assuming these payouts are reinvested.Max drawdown: The most important proportion drop from a fund’s peak worth to its lowest level over a selected interval.Beta: A measure of a fund’s volatility in comparison with the general market, sometimes the S&P 500.AUM (Belongings Below Administration): The whole market worth of all property managed by a fund.Small-cap: Refers to corporations with comparatively small market capitalizations, typically between $300 million and $2 billion.Worth shares: Shares thought of undervalued based mostly on monetary metrics like earnings, gross sales, or e book worth.Shopper cyclical: Sector together with corporations whose gross sales are delicate to financial cycles, like retailers, or automakers.Securities: Monetary devices that may be traded, resembling shares, bonds, or ETFs.Leverage: The usage of borrowed cash to extend potential funding returns, or losses.
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Jake Lerch has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Rocket Corporations. The Motley Idiot has a disclosure coverage.
ISCV vs. IWN: ISCV Gives Decrease Prices However IWN Gives Larger Liquidity was initially revealed by The Motley Idiot
