ISCG vs. RZG: How Do These Small Cap ETFs Measure Up to One Another?

2 hours ago 1

Jake Lerch, The Motley Fool

Sat, January 24, 2026 astatine 1:30 PM CST 5 min read

ISCG charges a overmuch little disbursal ratio and holds astir 970 stocks, offering broader diversification than RZG
RZG outperformed ISCG implicit the past 5 years, but ISCG led connected one-year full instrumentality arsenic of Jan. 9, 2026
ISCG tilts much toward industrials and technology, portion RZG leans heavy connected healthcare and fiscal services
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The iShares Morningstar Small-Cap Growth ETF (NYSEMKT:ISCG) stands retired for its ultra-low costs and broader portfolio, portion the Invesco S&P SmallCap 600 Pure Growth ETF (NYSEMKT:RZG) brings a narrower, much healthcare-tilted attack and a five-year maturation of $1,154 connected $1,000, somewhat higher than ISCG’s $1,095.

Both ISCG and RZG people U.S. small-cap maturation stocks, but they disagree successful cost, diversification, and assemblage emphasis. This examination digs into however these differences, on with caller returns and hazard profiles, whitethorn entreaty to investors seeking vulnerability to the small-cap maturation segment.

Metric

RZG

ISCG

Issuer	Invesco	IShares
Expense ratio	0.35%	0.06%
1-yr instrumentality (as of 2026-01-09)	15.9%	19.4%
Dividend yield	0.3%	0.6%
Beta	1.19	1.10
AUM	$109.9 million	$887.3 million

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

ISCG is importantly much affordable, with an disbursal ratio astir 0.3 percent points little than RZG, and it besides offers a somewhat higher dividend yield, which whitethorn entreaty to cost-conscious investors seeking a humble payout boost.

Metric

RZG

ISCG

Max drawdown (5 y)	-38.31%	-41.49%
Growth of $1,000 implicit 5 years	$1,154	$1,095

ISCG tracks a wide small-cap maturation scale and holds 971 stocks, making it 1 of the astir diversified options successful the segment. Its assemblage premix is led by industrials (23%), exertion (20%), and healthcare (17%). The apical holdings—Lumentum Holdings Inc (NASDAQ:LITE), Kratos Defense And Security Solutions (NASDAQ:KTOS), and Ati Inc (NYSE:ATI)—are each little than 1% of assets, pointing to a highly diversified approach. The money has a agelong way record, with implicit 21 years successful operation.

RZG, successful contrast, is much concentrated, with 131 holdings and a heavier tilt toward healthcare (26%), followed by industrials (18%) and fiscal services (16%). Its largest positions—ACM Research Inc (NASDAQ:ACMR), PTC Therapeutics Inc (NASDAQ:PTCT), and Progyny Inc (NASDAQ:PGNY)—make up a higher stock of assets than ISCG’s leaders, reflecting a much focused portfolio. Neither money layers connected leverage, currency hedging, oregon different structural quirks.