IJT vs. RZG: A Tale of Two Tiny Titans

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Two little creatures, the iShares S&P Small-Cap 600 Growth ETF (IJT +0.72%) and the Invesco S&P SmallCap 600 Pure Growth ETF (RZG +0.63%), scuttle through the financial forest, both seeking to feast on small-cap growth. Yet one, RZG, is a sly fox, hunting only for “pure” prey-stocks with sales, earnings, and momentum. The other, IJT, is a plump, lumbering bear, munching broadly on all growth-tastic morsels. Let us peer into their burrows to see who truly thrives.

Snapshot (cost & size)

Metric RZG IJT
Issuer Invesco iShares
Expense ratio 0.35% 0.18%
1-yr return (as of Jan. 7, 2025) 12.99% 5.75%
Dividend yield 0.36% 0.9%
AUM $104.83 million $6.29 billion
*Beta (5Y monthly) 1.15 1.18

*Beta measures how much a fund dances with the S&P 500; the more it waltzes, the more it risks falling into the abyss.

IJT, the frugal pig, charges a mere 0.18% fee, while RZG, the glutton, demands 0.35%. IJT also offers a richer dividend treat-0.9%-compared to RZG’s meager 0.36%. But beware, dear investor: the cheapest pie may hide a bitter filling.

Performance & risk comparison

Metric RZG IJT
Max drawdown (5 y) (38.33%) (29.24%)
Growth of $1,000 over 5 years $1,199 $1,266

What’s inside

IJT, the old bear, hoards 342 tiny treasures, spread across technology, industrials, and healthcare. Its top holdings-Arrowhead Pharmaceuticals, Armstrong World Industries, and InterDigital-are mere nibbles, each less than 1.4% of the feast. A 25-year-old giant, it knows the forest well.

RZG, the sly fox, hunts only 135 prey, favoring healthcare’s sweet berries. Its top picks-Progyny, ACM Research, and ARMOUR Residential REIT-are bold, bolder than IJT’s timid snacks. Yet fewer prey means fewer surprises.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investors

What is “pure” growth, you ask? It is a recipe of sales, earnings, and momentum, cooked by the S&P. RZG, the fox, excludes all who fail the test, leaving a sparse table. IJT, the bear, gobbles all, even the stodgy.

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Pure growth ETFs promise to outpace their rivals, yet the tale is not always true. RZG, the fox, may dart ahead in a year, but over five, IJT, the bear, slogs ahead with a 21% feast, while RZG’s 13.43% is but a snack.

For short-term feasts, RZG is the sly choice. For long-term, cheaper, broader, and sweeter dividends, IJT is the bear to follow. But beware: even bears stumble, and foxes may outwit.

Glossary

Expense ratio: The price of the journey, a percentage of the treasure.
Assets under management (AUM): The total value of the forest’s gold.
Small-cap: A realm of companies with modest gold.
ETF (Exchange-Traded Fund): A bag of tricks traded on the market.
Drawdown: The deepest fall in the forest’s path.
Dividend yield: The treats offered along the way.
Beta: How much a fund waltzes with the S&P 500.
Sector weight: The proportion of the forest’s gold in each realm.
Pure growth methodology: A recipe that selects only the juiciest fruits.
Leverage: Borrowing gold to grow more, but risking the forest.
ESG overlay: A cloak of ethics draped over the hunt.
Total return: The treasure plus all treats, reinvested.

And so, dear reader, the tale ends with a warning: the forest is full of foxes and bears, but only the wariest survive. 🐍

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2026-01-10 20:13