IWN prices the next expense ratio and yields barely lower than ISCV
IWN has delivered a stronger 1-year whole return however skilled a deeper five-year drawdown
IWN holds extra shares and tilts extra towards actual property, whereas ISCV has higher publicity to shopper cyclicals
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The iShares Russell 2000 Worth ETF (NYSEMKT:IWN) prices 4 occasions the expense ratio of the iShares Morningstar Small-Cap Worth ETF (NYSEMKT:ISCV), however provides broader holdings, greater latest 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 method 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 reasonably priced, charging simply 0.06% in annual charges in comparison with IWN’s 0.24%, and in addition delivers a barely greater 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 companies (26%), actual property (12%), and industrials (11%), with prime 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 totally different sector combine: monetary companies (21%), shopper cyclical (16%), and industrials (13%). Amongst its 1,101 holdings, prime 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.
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Each of those funds share many comparable traits, nevertheless, there are some key variations traders ought to think about.
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 business. ISCV, by comparability, has solely 21% of its whole holdings within the monetary sector.
One other key distinction is value. 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 might probably make it distinction.
Lastly, there are two different key factors of divergence: dividend yield and liquidity.
ISCV provides a barely greater dividend yield at 2.0% versus 1.7% for IWN — making ISCV a better option for these looking for earnings from their funding. As for liquidity, IWN has over $12 billion in property below administration. ISCV, in contrast, 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 degree the place bid-ask spreads may start to widen, significantly throughout a correction or bear market. Due to this fact, traders involved with liquidity threat is likely to be sensible to pick out IWN.
Expense ratio: The annual payment, as a share of property, {that a} fund prices to cowl working prices.
Dividend yield: The annual dividends paid by a fund, expressed as a share of its present value.
Complete return: The funding’s value change plus all dividends and distributions, assuming these payouts are reinvested.
Max drawdown: The biggest share 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, usually the S&P 500.
AUM (Property Below Administration): The overall market worth of all property managed by a fund.
Small-cap: Refers to corporations with comparatively small market capitalizations, usually between $300 million and $2 billion.
Worth shares: Shares thought of undervalued primarily based on monetary metrics like earnings, gross sales, or guide 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, akin to shares, bonds, or ETFs.
Leverage: Using 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 Presents Decrease Prices However IWN Offers Higher Liquidity was initially revealed by The Motley Idiot
