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

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

    March 17, 2026


    The State Street SPDR S&P 600 Small Cap Growth ETF (SLYG +1.14%) and the iShares Morningstar Small-Cap Growth ETF (ISCG +1.23%) both target U.S. small-cap growth stocks, but ISCG stands out for its lower cost, broader portfolio, and somewhat higher recent returns, offset by a steeper historical drawdown.

    Both SLYG and ISCG give investors exposure to U.S. small-cap growth equities, but their underlying indexes, portfolio size, and sector tilts create notable differences. This comparison unpacks their costs, performance, risk, portfolio construction, and trading considerations to help clarify which may appeal based on an investor’s preferences.

    Snapshot (cost & size)

    Metric SLYG ISCG
    Issuer SPDR IShares
    Expense ratio 0.15% 0.06%
    1-yr return (as of 2026-03-11) 18.3% 24.7%
    Dividend yield 0.8% 0.6%
    Beta 1.06 1.13
    AUM $4.0 billion $881.5 million

    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, compared with 0.15% for SLYG, though SLYG offers a slightly higher dividend yield. Investors prioritizing cost efficiency may find ISCG’s fee structure appealing, while income-focused investors might notice SLYG’s modestly higher payout.

    Performance & risk comparison

    Metric SLYG ISCG
    Max drawdown (5 y) -29.18% -37.80%
    Growth of $1,000 over 5 years $1,086 $1,072

    What’s inside

    ISCG tracks a Morningstar small-cap growth index and holds 963 stocks as of March 11, 2026. It tilts heavily toward industrials (25%), with technology (21%) and healthcare (16%) following. Its largest positions—Lumentum Holdings Inc(LITE +1.27%), Ati Inc(ATI +0.66%), and Rbc Bearings Inc (RBC 0.49%)—collectively account for a small portion of assets, reflecting a broad, diversified approach. The fund’s sector mix and deep roster may help reduce company-specific risk but can also dilute the impact of top performers.

    SLYG, in contrast, holds 339 stocks and spreads assets more evenly across industrials (19%), technology (19%), and healthcare (17%). Its top holdings—Interdigital Inc (IDCC 3.55%), Caretrust Reit Inc (CTRE 1.05%), and Sitime Corp (SITM +0.68%)—are similarly modest in weight, keeping concentration risk in check. Both funds avoid leverage, currency hedges, or ESG overlays, offering straightforward small-cap growth exposure.

    For more guidance on ETF investing, check out the full guide at this link.

    What this means for investors

    For investors keen on small-cap stocks, the State Street SPDR S&P 600 Small Cap Growth ETF (SLYG) and the iShares Morningstar Small-Cap Growth ETF (ISCG) are both exchange-traded funds (ETFs) worth discovering. Let’s examine the differences between these two small-cap growth ETFs.

    First, SLYG excels in several areas. Two of the most important are dividend yield and AUM. The fund sports a dividend yield of 0.8%, versus 0.6% for its rival. It also has $4.0 billion in AUM, while ISCG has only $0.9 billion. This could be a critical difference for many investors. With its greater AUM, SLYG will also display greater liquidity — meaning investors will find it easier to buy and sell shares at reasonable prices, particularly in times of high volatility. Finally, SLYG has demonstrated a lower max drawdown (-29.18% vs. -37.80%). This could prove crucial for risk-averse investors.

    Turning to ISCG, its main advantages are its lower fees and better recent performance history. The fund has a very affordable expense ratio of 0.06%, compared to SLYG’s 0.15%. What’s more, it has posted a one-year performance of 24.7%, easily besting its rival’s 18.3%.

    In summary, risk-averse investors who favor higher yields and greater liquidity will likely prefer SLYG. Those willing to accept greater risk and lower liquidity, who also favor lower fees, may select ISCG.



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