Okay, let’s talk small-cap ETFs. It’s like choosing between two slightly less terrible options when everyone else is buying NFTs. We’ve got the iShares Morningstar Small-Cap ETF (ISCB) and the Vanguard Small-Cap ETF (VB). Both aim to give you exposure to those plucky, underdog companies that are trying so hard to become the next Amazon. Spoiler alert: most won’t. But, hey, diversification, right?
ISCB has been putting up slightly better recent returns, which is nice. It also holds more companies. It’s like being the person who brings 72 different dips to a party. VB, on the other hand, is the reliable, slightly boring friend who always shows up with a decent cheese plate. It’s bigger, more liquid, and less likely to give you a panic attack. Honestly, in this market, that’s a win.
The Nitty Gritty (Because Numbers Matter, Apparently)
| Metric | VB | ISCB |
|---|---|---|
| Issuer | Vanguard | iShares |
| Expense Ratio | 0.03% | 0.04% |
| 1-yr Return (as of 2026-02-04) | 9.5% | 12.9% |
| Dividend Yield | 1.26% | 1.31% |
| AUM | $162.3 billion | $263.9 million |
Look, both are ridiculously cheap. We’re talking pennies per $10,000 invested. That’s less than my daily latte. The dividend yields are basically a wash. So, don’t base your entire retirement plan on a fraction of a percent. That’s just…optimistic.
Performance & Risk: Let’s Not Pretend It’s a Sure Thing
| Metric | VB | ISCB |
|---|---|---|
| Max Drawdown (5 y) | -28.16% | -29.95% |
| Growth of $1,000 over 5 years | $1,284 | $1,269 |
See? Both took a hit. Welcome to the stock market. It’s not a straight line to riches. It’s more like a roller coaster designed by someone who hates joy. VB held up slightly better over five years, but honestly, in the grand scheme of things, it’s noise. It’s like arguing over which shade of beige is more sophisticated.
Inside the Black Box (What Are We Actually Buying?)
ISCB is holding 1,568 companies. That’s a lot of hoping and praying. Their top holdings are Lumentum Holdings Inc, Albemarle Corp, and Exact Sciences Corp. VB is a bit more focused, with Rocket Lab Corp, Sandisk Corp, and Ciena Corp leading the charge. VB’s sheer size makes it easier to get in and out without moving the market. That’s good, because nobody likes a crowded exit.
Honestly, both portfolios are pretty standard small-cap fare. Lots of industrials, tech, and financials. It’s the same story everywhere. Everyone’s chasing the same growth, and hoping to avoid the inevitable disappointment.
The Bottom Line (Because You Didn’t Read All That, Did You?)
ISCB and VB are both perfectly reasonable ETFs. They’re not going to make you a millionaire overnight, but they won’t completely ruin your life either. If you’re a hyper-cost-conscious investor, VB’s slightly lower expense ratio is appealing. But honestly, the difference is negligible. Choose whichever one you like better. Or flip a coin. It’s all a gamble anyway.
Just remember: past performance is not indicative of future results. And if anyone tells you they have a foolproof investment strategy, run the other way. They’re probably selling something.
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2026-02-16 20:16