Invesco (RZG) vs. iShares (IJT): Which Small Cap Growth ETF Is the Better Buy?
RZG delivered stronger 1-year returns at 39.70%, but IJT's lower 0.18% expense ratio and $8.3B in assets offer cost advantages for long-term investors.
Overview
Investors comparing the iShares S&P Small-Cap 600 Growth ETF (NASDAQ:IJT) and the Invesco S&P SmallCap 600 Pure Growth ETF (NYSEMKT:RZG) must weigh the significantly lower ownership costs of the iShares fund against the Invesco fund's stronger recent 1-year total return.
Both funds target the small-cap segment of the U.S. market but use different selection criteria. IJT focuses on classic growth factors such as earnings momentum and sales growth, while RZG weights companies in the same small-company universe by its “growth score.” This technical nuance creates distinct risk-reward profiles for investors seeking small-company exposure.
Details
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. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.