ISCG offers lower fees and broader diversification, while RZG focuses on high-growth stocks with higher volatility.
The iShares Morningstar Small-Cap Growth ETF (ISCG) and Invesco S&P SmallCap 600 Pure Growth ETF (RZG) target small-cap growth but employ distinct strategies. ISCG tracks a market-cap-weighted index with 933 holdings, while RZG screens for stocks with strong sales, earnings, and price momentum, resulting in a more concentrated portfolio.
ISCG has a lower expense ratio of 0.06% compared to RZG’s 0.35%, and a slightly higher dividend yield of 0.57% versus RZG’s 0.42%. ISCG’s top sectors include industrials (23.9%), technology (22.5%), and healthcare (17.9%), while RZG’s approach may lead to higher volatility, as measured by beta relative to the S&P 500.
Both funds cater to different investor preferences, with ISCG prioritizing cost efficiency and diversification, and RZG emphasizing growth characteristics.