SCHA vs. ISCB: Which Small-Cap ETF Is the Better Buy for Investors in 2026?
Sector allocations, expense ratios, and yield profiles set these two small-cap ETFs apart for investors seeking portfolio diversification.
SCHA vs. ISCB: Which Small-Cap ETF Is the Better Buy for Investors in 2026?
Overview
Investors seeking small-cap exposure often prioritize low fees and broad diversification. Both the Schwab U.S. Small-Cap ETF (NYSEMKT:SCHA) and the iShares Morningstar Small-Cap ETF (NYSEMKT:ISCB) track hundreds of smaller U.S. companies, but differences in index methodologies, expense ratios, and divdend yields create distinct profiles for those weighing these two options for a core portfolio position.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Details
While both funds feature low fees, SCHA is the slightly cheaper option, with an expense ratio of 0.03%, compared to ISCB’s 0.04%. ISCB offers a higher payout with a dividend yield of 1.27%, compared to SCHA’s 1.00%.
Source
Originally published at www.fool.com.
