One might imagine oneself standing at a crossroads, much like Bertie Wooster faced when choosing between a jaunt to the seaside or a spot of tennis with Tuppy, but here the stakes are not merely social. The iShares Russell 2000 Value ETF (IWN +0.60%) and the iShares Morningstar Small-Cap Value ETF (ISCV +0.56%) present a similarly vexing quandary: one charges four times the fee of the other, yet offers broader holdings and a modest tilt toward real estate-a sector as reliable as a well-tied cravat in uncertain times.
Both these funds, you see, are determined to capture U.S. small-cap value stocks-those companies trading at prices that make one raise an eyebrow, as though they were offering a half-price sale on a rainy afternoon. This comparison, then, is less a battle of titans and more a matter of personal preference, much like deciding whether to invest in a new hat or a second pair of gloves. We shall examine costs, performance, liquidity, and portfolio composition to determine which might suit the discerning investor’s needs.
Snapshot (Cost & Size)
| Metric | ISCV | IWN |
|---|---|---|
| Issuer | iShares | iShares |
| Expense ratio | 0.06% | 0.24% |
| 1-yr return (as of 2026-01-05) | 11.9% | 13.8% |
| Dividend yield | 2.0% | 1.7% |
| AUM | $586.9 million | $12.4 billion |
ISCV, with its modest 0.06% fee, is the thrifty host who insists on tea at half-price, while IWN, at 0.24%, is the genial host who serves it in a silver teapot. The former also boasts a slightly higher yield, a dash of interest for those who find comfort in the steady drip of income, much like a well-maintained clockwork bird.
Performance & Risk Comparison
| Metric | ISCV | IWN |
|---|---|---|
| Max drawdown (5 y) | -25.35% | -26.71% |
| Growth of $1,000 over 5 years | $1,657 | $1,534 |
What’s Inside
IWN, the more expansive of the two, tracks a Russell index with 1,407 securities in its portfolio, a number so large it might give one pause before attempting to count them all. Its sector allocation leans heavily on financial services (26%), real estate (12%), and industrials (11%), with top holdings including the ever-reliable Blk Csh Fnd Treasury Sl Agency (XTSLA) and the sprightly Echostar (SATS +2.61%).
ISCV, by contrast, is a more selective companion, focusing on U.S. small-cap value stocks with a slightly different sector mix: financial services (21%), consumer cyclical (16%), and industrials (13%). Among its 1,101 holdings, one finds Sandisk (SNDK +12.81%) and Rocket Companies (RKT +9.65%), a portfolio as varied as a gentleman’s collection of pocket squares.
For more guidance on ETF investing, check out the full guide at this link.
What This Means For Investors
Both funds share a mutual admiration society of small-cap value stocks, yet their differences are as pronounced as the distinction between a well-tied cravat and one that has seen better days. IWN, with its 26% tilt toward financial services, is the seasoned raconteur, while ISCV, at 21%, is the cautious listener who nods wisely at the right moments.
The cost discrepancy is as stark as the difference between a first-class railway ticket and a third-class one. An investor with $10,000 in IWN would part with $24 annually, whereas ISCV would demand a mere $6-a saving that, while not enough to fund a holiday, is certainly enough to warrant a smile.
Then there is the matter of liquidity. IWN, with $12.4 billion in assets under management, is the life of the party, always ready to dance in and out of trades. ISCV, with $586.9 million, is a charming but slightly more reserved guest. While it can manage a waltz, one might feel the bid-ask spreads tightening during a market correction, much like a waistcoat that has been tightened one too many times.
Glossary
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: The annual dividends paid by a fund, expressed as a percentage of its current price.
Total return: The investment’s price change plus all dividends and distributions, assuming those payouts are reinvested.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a specific period.
Beta: A measure of a fund’s volatility compared to the overall market, typically the S&P 500.
AUM (Assets Under Management): The total market value of all assets managed by a fund.
Small-cap: Refers to companies with relatively small market capitalizations, often between $300 million and $2 billion.
Value stocks: Stocks considered undervalued based on financial metrics like earnings, sales, or book value.
Consumer cyclical: Sector including companies whose sales are sensitive to economic cycles, like retailers, or automakers.
Securities: Financial instruments that can be traded, such as stocks, bonds, or ETFs.
Leverage: The use of borrowed money to increase potential investment returns, or losses.
And so, dear reader, we find ourselves at the end of our little sojourn. Whether one chooses ISCV’s frugal charm or IWN’s gregarious exuberance is a matter best left to the investor’s inner Jeeves. After all, as the poet might say, “To choose the right ETF is to choose the right cravat-both require a discerning eye.” 🎩
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2026-01-10 21:54