--- title: "ISCG vs. VBK: Which ETF Offers Lower Fees, More Liquidity, and Greater Returns?" type: "News" locale: "en" url: "https://longbridge.com/en/news/279463358.md" description: "The comparison between iShares Morningstar Small-Cap Growth ETF (ISCG) and Vanguard Small-Cap Growth ETF (VBK) highlights key differences in fees, liquidity, and performance. ISCG has a higher one-year return (24.7% vs. 23.0%) and a slightly better dividend yield (0.6% vs. 0.5%), while VBK boasts lower fees (0.05% vs. 0.06%) and significantly higher assets under management ($40 billion vs. $881.5 million), indicating better liquidity. Both ETFs provide diversified exposure to U.S. small-cap growth stocks, but ISCG offers a broader portfolio with 963 stocks compared to VBK's 579. Investors should weigh these factors when choosing between the two." datetime: "2026-03-17T16:05:18.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/279463358.md) - [en](https://longbridge.com/en/news/279463358.md) - [zh-HK](https://longbridge.com/zh-HK/news/279463358.md) --- # ISCG vs. VBK: Which ETF Offers Lower Fees, More Liquidity, and Greater Returns? ## Key Points - ISCG holds more stocks than VBK and has a much smaller asset base - Both ETFs delivered strong 1-year returns and similar max drawdowns - ISCG and VBK are closely matched on cost and yield, with only a minor difference in expense and payout rates - 10 stocks we like better than iShares Trust - iShares Morningstar Small-Cap Growth ETF › **Vanguard Small-Cap Growth ETF** (NYSEMKT:VBK) and **iShares Morningstar Small-Cap Growth ETF** (NYSEMKT:ISCG) both offer diversified exposure to U.S. small-cap growth stocks, but differ in portfolio breadth, assets under management (AUM), and trading liquidity. Both funds target the small-cap growth segment, with VBK tracking the CRSP U.S. Small Cap Growth Index and ISCG following a Morningstar methodology. This comparison looks at their respective costs, performance, risk, underlying holdings, and practical considerations for investors seeking to tap into smaller growth companies. ## Snapshot (cost & size) Metric VBK ISCG Issuer Vanguard IShares Expense ratio 0.05% 0.06% 1-yr return (as of 2026-03-11) 23.0% 24.7% Dividend yield 0.5% 0.6% Beta 1.17 1.13 AUM $40.0 billion $881.5 million _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 charges a slightly higher expense ratio than VBK, but the difference is just 0.01 percentage points, while ISCG also offers a marginally higher dividend yield. ## Performance & risk comparison Metric VBK ISCG Max drawdown (5 y) \-38.39% \-37.80% Growth of $1,000 over 5 years $1,097 $1,072 ## What's inside ISCG holds 963 stocks, making it one of the broader small-cap growth ETFs, and has been running for over 21 years. Its sector mix leans toward industrials (25%), technology (21%), and healthcare (16%). The top holdings are **Lumentum Holdings Inc** (NASDAQ:LITE), **Ati Inc** (NYSE:ATI), and **Rbc Bearings Inc** (NYSE:RBC), with no single stock accounting for more than 1.7% of assets. The fund does not employ leverage, currency hedges, or ESG screens. In contrast, VBK holds 579 stocks, with a higher allocation to technology (26%) and similar weightings to industrials (23%) and healthcare (17%). Its top positions are **Rocket Lab Corp** (NASDAQ:RKLB), **Comfort Systems USA Inc** (NYSE:FIX), and **Sandisk Corp** (NASDAQ:SNDK), each around 1.2%-1.3% of assets. VBK also avoids leverage or other structural quirks, tracking the CRSP U.S. Small Cap Growth Index for a straightforward approach. For more guidance on ETF investing, check out the full guide at this link. ## What this means for investors Exchange-traded funds (ETFs) are a great way for investors to gain exposure to U.S. small-cap stocks. Both the **Vanguard Small-Cap Growth ETF** (VBK) and **iShares Morningstar Small-Cap Growth ETF** (ISCG) offer compelling options for investors. Let’s delve into the pros and cons of each. First, there’s VBK. In the head-to-head matchup with ISCG, VBK takes the gold on a few fronts. It has slightly lower fees (0.05% vs. 0.06%). It also has much higher AUM ($40.0 billion vs. $0.9 billion). This is important because AUM serves as an indicator of liquidity — that is, how easily an investor can buy or sell shares. Lastly, VBK has delivered a better return over the last five years. As for ISCG, it has advantages, too. ISCG has delivered a better one-year return (24.7% vs. 23.0%). It also boasts a slightly higher dividend yield (0.6% vs. 0.5%). Finally, it has a higher concentration of industrial stocks than VBK, which may appeal to investors seeking an alternative to the tech-heavy tilt of many large or mega-cap ETFs. In summary, VBK and ISCG are both appealing options for small-cap investors. VBK wins the matchup on fees, liquidity, and long-term performance. Meanwhile, ISCG takes the prize on long-term performance, dividend yield, and sector exposure. ## Should you buy stock in iShares Trust - iShares Morningstar Small-Cap Growth ETF right now? Before you buy stock in iShares Trust - iShares Morningstar Small-Cap 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 Morningstar Small-Cap 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 $513,407**!\* Or when **Nvidia** made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, **you’d have $1,123,237**!\* Now, it’s worth noting _Stock Advisor’s_ total average return is 938% — a market-crushing outperformance compared to 188% 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 17, 2026._ _Jake Lerch has positions in Rocket Lab and has the following options: long December 2026 $30 puts on Rocket Lab. The Motley Fool has positions in and recommends Comfort Systems USA, Lumentum, RBC Bearings, Rocket Lab, and Vanguard Index Funds - Vanguard Small-Cap Growth ETF. 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 - [VBK.US](https://longbridge.com/en/quote/VBK.US.md) - [ISCG.US](https://longbridge.com/en/quote/ISCG.US.md) ## Related News & Research - [VTI vs. VOO — Which Vanguard ETF Should You Own in 2026?](https://longbridge.com/en/news/287079454.md) - [Small-Cap ETFs May Be Prepping For A Comeback Investors Are Still Ignoring: Here Are Four You Can Start With](https://longbridge.com/en/news/286806917.md) - [I'd buy this growth stock after its 35% plunge](https://longbridge.com/en/news/286685297.md) - [Here's How Much You Would Have Made Owning Vanguard Russell 1000 Growth ETF Stock In The Last 10 Years](https://longbridge.com/en/news/286983636.md) - [$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)