Which Is the Better Small-Cap ETF, Schwab's SCHA or iShares' IJR?

Robert Izquierdo, The Motley Fool

Sat, July 11, 2026 astatine 1:47 PM CDT 4 min read

While the iShares Core S&P Small-Cap ETF (NYSEMKT:IJR) offers concentrated vulnerability to profitable small-caps, the Schwab U.S. Small-Cap ETF (NYSEMKT:SCHA) provides a broader, much tech-leaning portfolio with a little disbursal ratio.

Small-cap stocks are often a root of semipermanent growth, and these 2 funds supply 2 chiseled ways to seizure that segment. While the iShares money relies connected a circumstantial scale that requires companies to conscionable established eligibility requirements, the Schwab money casts a wider nett crossed the small-cap universe.

Snapshot (cost & size)

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

Cost-conscious investors whitethorn similar the Schwab fund, arsenic its 0.03% disbursal ratio is fractional that of the iShares fund. Given the output spread is minimal, some ETFs are coagulated sources of accordant income alongside their superior absorption connected superior appreciation.

Performance & hazard examination

What's wrong

The Schwab U.S. Small-Cap ETF tracks a wide scale of 1,727 stocks, providing extended diversification crossed the smaller tier of the market. Its portfolio leans towards industrials astatine 18%, exertion and financials astatine 17% each, and healthcare astatine 15%. Its largest positions see Sandisk (NASDAQ:SNDK) astatine 5.30%, Lumentum Holdings (NASDAQ:LITE) astatine 1.14%, and Revolution Medicines (NASDAQ:RVMD) astatine 0.79%. It was launched successful 2009. The Schwab money has paid $0.36 per stock implicit the trailing 12 months, which connected its caller ~$34.31 stock terms works retired to a 1.00% yield.

In contrast, the iShares Core S&P Small-Cap ETF uses a much selective approach, holding 652 positions that conscionable the S&P SmallCap 600 eligibility requirements. The portfolio is diversified crossed fiscal services astatine 19%, industrials astatine 17%, and exertion astatine 13%. Top holdings see Molina Healthcare (NYSE:MOH) astatine 0.67%, Brightspring Health Services (NASDAQ:BTSG) astatine 0.61%, and Viasat (NASDAQ:VSAT) astatine 0.57%. It was launched successful 2000. The iShares money has paid $1.64 per stock implicit the trailing 12 months, which connected its caller ~$143.69 stock terms works retired to a 1.10% yield.