ISCV vs. IJJ: The Rising Small-Cap ETF That Challenges the Popular Mid-Cap ETF

Both the iShares SP Mid-Cap 400 Value ETF (NYSEMKT:IJJ)and the iShares Morningstar Small-Cap Value ETF (NYSEMKT:ISCV) put successful akin markets, but disagree successful size, cost, and marketplace headdress focus. IJJ focuses connected mid-cap value, portion ISCV tilts toward smaller companies with a broader portfolio and little fees.

*Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

ISCV appears to beryllium much affordable with a little disbursal ratio, and its output edges somewhat higher than IJJ’s, which whitethorn entreaty to cost-conscious investors seeking a humble income boost.

ISCV tracks a small-cap worth universe, holding 1,097 stocks with a dense tilt toward fiscal services (21%), user cyclicals (15%), and industrials (13%). Its largest positions, specified arsenic SanDisk (NASDAQ:SNDK), Blk Csh Fnd Treasury Sl Agency (XTSLA), and Rocket Companies Class A (NYSE:RKT), are each nether 1% of assets, making the money broadly diversified. With implicit 21 years successful the market, ISCV offers vulnerability to smaller, much volatile companies that tin behave otherwise from the broader market.

By contrast, IJJ focuses connected the mid-cap worth segment, with apical sectors successful fiscal services (19%), industrials (15%), and user cyclicals (12%). Its apical holdings—Flex (NASDAQ:FLEX), Talen Energy Corporation (NASDAQ:TLN), and US Foods Holding (NYSE:USFD)—hold somewhat larger weights, but the money wide is much concentrated, tracking 296 stocks. IJJ’s attack whitethorn suit those who similar mid-sized companies, which whitethorn connection perchance greater stableness than tiny caps.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.

Along with having a smaller disbursal ratio, ISCV besides has a somewhat cheaper trailing price-to-earnings (P/E) ratio compared to IJJ implicit the past 12 months. The small-cap ETF has a P/E ratio of 15.50, portion IJJ's is 18.30, making ISCV look to beryllium an adjacent much affordable investment. It is besides worthy noting that ISCV has much than triple the full holdings of the mid-cap ETF, making its diverseness abundantly clear.