--- title: "IJT Plays Small-Cap Growth With Guardrails, ISCG Goes All In" type: "News" locale: "en" url: "https://longbridge.com/en/news/278939844.md" description: "The iShares Morningstar Small-Cap Growth ETF (ISCG) offers a lower expense ratio and broader portfolio compared to the iShares S&P Small-Cap 600 Growth ETF (IJT), which provides a higher dividend yield and milder drawdowns. ISCG holds nearly 1,000 stocks with a heavier tilt towards industrials, while IJT has around 355 stocks with a profitability screen. Investors seeking broad exposure may prefer ISCG, while those valuing quality may opt for IJT. Both funds target U.S. small-cap growth stocks but differ in risk and portfolio construction." datetime: "2026-03-12T20:35:26.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/278939844.md) - [en](https://longbridge.com/en/news/278939844.md) - [zh-HK](https://longbridge.com/zh-HK/news/278939844.md) --- # IJT Plays Small-Cap Growth With Guardrails, ISCG Goes All In ## Key Points - ISCG charges a lower expense ratio but IJT is much larger and pays a higher dividend yield. - IJT has experienced a milder maximum drawdown and slightly stronger five-year growth of $1,000. - ISCG holds nearly three times as many stocks with a heavier tilt toward industrials. - 10 stocks we like better than iShares Trust - iShares S&P Small-Cap 600 Growth ETF › The **iShares Morningstar Small-Cap Growth ETF** (NYSEMKT:ISCG) features a lower cost and broader portfolio, while the **iShares S&P Small-Cap 600 Growth ETF** (NASDAQ:IJT) offers a higher yield, milder drawdowns, and greater assets under management. Both ISCG and IJT aim to provide exposure to U.S. small-cap growth stocks, but they take different approaches in portfolio construction, costs, and risk characteristics. This comparison examines their fees, performance, risk, and holdings to help investors determine which may better fit their objectives. ## Snapshot (cost & size) Metric ISCG IJT Issuer IShares IShares Expense ratio 0.06% 0.18% 1-yr return (as of 2026-03-11) 24.7% 18.3% Dividend yield 0.6% 0.8% Beta 1.3 1.2 AUM $923.8 million $6.8 billion _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._ ISCG is more affordable with a 0.06% expense ratio, while IJT charges 0.18% but compensates with a higher 0.8% dividend yield versus ISCG’s 0.6%—a potential draw for income-focused investors. ## Performance & risk comparison Metric ISCG IJT Max drawdown (5 y) \-41.5% \-29.2% Growth of $1,000 over 5 years $1,072 $1,091 ## What's inside IJT tracks a portfolio of 355 U.S. small-cap growth companies, with sector exposures led by industrials (19%), technology (19%), and healthcare (14%). Its largest holdings—**Interdigital** (NASDAQ:IDCC), **Moog Inc Class A** (MOG-A), and **CareTrust REIT** (NYSE:CTRE)—each represent just over 1% of assets, and the fund’s 25.6-year history highlights its longevity and liquidity. IJT’s portfolio is more concentrated than some peers, but remains broadly diversified within the small-cap growth space. ISCG, by contrast, holds 963 stocks, creating a broader spread across the small-cap growth landscape. Its allocations lean heavier into industrials (25%), technology (21%), and healthcare (16%), with top holdings like **Lumentum** (NASDAQ:LITE), **ATI** (NYSE:ATI), and RBC Bearings (NYSE:RBC) each making up less than 2% of assets. Both funds avoid leverage, currency hedges, and ESG overlays, but ISCG’s broader diversification could appeal to those seeking more comprehensive coverage. For more guidance on ETF investing, check out the full guide at this link. ## What this means for investors Small-cap growth stocks are where the market's biggest winners and most painful losses can often be found. These smaller, faster-growing companies can deliver outsized returns for patient investors, but they demand real tolerance for stomach-dropping volatility. IJT and ISCG both plant their flags squarely in this territory, targeting U.S. small-cap stocks with above-average growth characteristics. The difference lies in how wide they cast their nets. IJT holds around 335 stocks drawn from the S&P SmallCap 600, which screens for profitability before admission -- a quality gate that weeds out financially fragile companies. ISCG holds nearly 1,000 stocks using Morningstar's broader methodology, accepting far more speculative names. That breadth carries a cost: ISCG has historically suffered deeper drawdowns during market downturns. For investors who want small-cap growth with a quality filter underneath, IJT is the stronger choice -- its profitability screen has historically cushioned the worst selloffs, and its 10-year annualized return edges ahead of ISCG's. ISCG is the better fit for investors who want the broadest possible small-cap growth exposure and can absorb sharper short-term pain for the chance to own nearly every growth-oriented small company in the market. ISCG has cheaper fees, but history suggests IJT's quality screen has been worth paying for. ## Should you buy stock in iShares Trust - iShares S&P Small-Cap 600 Growth ETF right now? Before you buy stock in iShares Trust - iShares S&P Small-Cap 600 Growth ETF, consider this: The _Motley Fool Stock Advisor_ analyst team just identified what they believe are the **10 best stocks** for investors to buy now… and iShares Trust - iShares S&P Small-Cap 600 Growth ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when **Netflix** made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, **you’d have $511,735**!\* Or when **Nvidia** made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, **you’d have $1,140,464**!\* Now, it’s worth noting _Stock Advisor’s_ total average return is 946% — a market-crushing outperformance compared to 191% for the S&P 500. **Don't miss the latest top 10 list, available with _Stock Advisor_, and join an investing community built by individual investors for individual investors.** See the 10 stocks » _\*Stock Advisor returns as of March 12, 2026._ _Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lumentum and RBC Bearings. The Motley Fool has a disclosure policy._ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. ### Related Stocks - [ISCG.US](https://longbridge.com/en/quote/ISCG.US.md) - [IJT.US](https://longbridge.com/en/quote/IJT.US.md) ## Related News & Research - [$100 Invested In iShares S&P 500 Growth ETF 20 Years Ago Would Be Worth This Much Today](https://longbridge.com/en/news/286800978.md) - [EagleRock Land Nets $333 Million From Class A Share Offering Priced at $18.50](https://longbridge.com/en/news/286969275.md) - [You Shouldn't Bet Everything On Big Tech. Check This New SMID-Cap ETF For Alpha Instead](https://longbridge.com/en/news/286817034.md) - [Retirees: Buy this ETF for long-term stability and high dividends](https://longbridge.com/en/news/286943591.md) - [QDRO Acquisition Sets Separate Trading for Class A Shares and Warrants on Nasdaq](https://longbridge.com/en/news/287111744.md)