The iShares Morningstar Small-Cap Growth ETF (ISCG) has a lower expense ratio than the Invesco S&P SmallCap 600 Pure Growth ETF (RZG) and offers broader diversification with 970 stocks. While RZG outperformed ISCG over the past five years, ISCG led in one-year total return as of Jan. 9, 2026. ISCG leans more towards industrials and technology, while RZG focuses on healthcare and financial services. ISCG is significantly more affordable with a slightly higher dividend yield. Both funds target U.S. small-cap growth stocks but differ in cost, diversification, and sector emphasis.

ISCG tracks a broad small-cap growth index with 971 stocks, while RZG is more concentrated with 131 holdings. ISCG’s top sectors are industrials, technology, and healthcare, while RZG leans towards healthcare, industrials, and financial services. ISCG has a lower expense ratio, higher AUM, and dividend yield, while RZG has outperformed ISCG over the last five years.

For investors seeking exposure to the small-cap sector, ISCG and RZG are two funds worth considering. Both aim to capture returns from small-cap growth stocks, with ISCG offering lower fees, higher liquidity, and a larger AUM, while RZG has a better performance history over the last five years. Investors can choose either fund based on their goals and priorities.

Read more at Nasdaq, Inc.: ISCG vs. RZG: How Do These Small Cap ETFs Measure Up to One Another?