Small Cap ETFs from iShares Offer Exciting Growth Opportunities. Is IWO or ISCG the Better Buy?
Sector weights and risk profiles differ sharply between these two funds, shaping their appeal for different investor priorities.
Small Cap ETFs from iShares Offer Exciting Growth Opportunities. Is IWO or ISCG the Better Buy?
Overview
The iShares Russell 2000 Growth ETF (NYSEMKT:IWO) offers a larger asset base and stronger recent performance, while the iShares Morningstar Small-Cap Growth ETF (NYSEMKT:ISCG) provides a more cost-effective entry into small-cap growth stocks.
Both exchange-traded funds target the volatile but potentially rewarding small-cap growth sector, which focuses on smaller companies with high expansion potential. While they share similar investment objectives, they track different indexes, which results in distinct sector weights and risk profiles. This comparison evaluates whether IWO’s significantly larger asset base and stronger recent performance justify its higher cost, or whether ISCG’s lean efficiency is more attractive.
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 as of the closing price of June 18.
Source
Originally published at www.fool.com.
