Key Points
Both the iShares Morningstar Small Cap Value ETF (NYSEMKT:ISCV) and the iShares S&P Mid-Cap 400 Value ETF (NYSEMKT:IJJ) take a value approach to investing in U.S. equities — they just do it with different-sized companies.
ISCV tracks small-cap companies that appear undervalued, while IJJ focuses on mid-sized firms with similar characteristics.
Snapshot (cost & size)
MetricISCVIJJIssueriSharesiSharesExpense ratio0.06%0.18%1-year return (as of July 9, 2026)24.41%16.24%Dividend yield1.85%1.59%Beta1.020.96AUM$685.2 million$8.7 billion
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
ISCV is the cheaper option, with an expense ratio of 0.06% compared to 0.18% for IJJ. ISCV also pays out more to shareholders, with a 1.85% dividend yield compared to IJJ’s 1.59%.
Performance & risk comparison
MetricISCVIJJMax drawdown (5 yr)(25.34%)(22.67%)Growth of $1,000 over 5 years (total return)$1,500$1,521
What’s inside
Launched in 2000, IJJ provides targeted exposure to 304 mid-sized companies with undervalued characteristics. Its portfolio tilts toward financial services at 21.8%, industrials at 19.1%, and consumer cyclicals at 14.0%. Its largest positions include US Foods (NYSE:USFD) at 1.3%, TD Synnex (NYSE:SNX) at 1.2%, and Reliance (NYSE:RS) at 1.1%.
ISCV holds a much broader portfolio of 1,051 stocks. Its biggest sector weights include financial services at 22.4%, consumer cyclicals at 14.6%, and industrials at 12.7%. Its top holdings are Host Hotels & Resorts (NASDAQ:HST) at 0.5%, Jazz Pharmaceuticals (NASDAQ:JAZZ) at 0.5%, and Aramark (NYSE:ARMK) at 0.5%. ISCV was launched in 2004.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Deciding between these two ETFs really comes down to which slice of the market an investor wants more exposure to — small-cap or mid-cap.
ISCV’s 1,000+ holdings spread risk across a huge swath of small, undervalued companies, and at a 0.06% expense ratio, it’s about as cheap as targeted value exposure gets. That combination of low cost and broad diversification is notable: small-cap funds don’t always come this inexpensive, and the extra yield (compared to IJJ) is a nice bonus for income-focused investors.
IJJ presents a similar case, but with a little more stability given its mid-cap focus. Mid-cap companies tend to hold up slightly better during volatile periods, which might appeal to investors who don’t want the wider swings that typically come with small-cap stocks.
Small-cap value has had a strong run over the past year, and ISCV’s outperformance during that stretch is a reminder that smaller companies can help juice returns when conditions favor risk-taking. But on a five-year basis, both funds have performed similarly — and that’s the more important takeaway for long-term investors. Chasing the better recent return can be tempting, but cost and consistency often matter more than a single strong year.
For investors building a diversified portfolio, there’s also a reasonable case for owning both of these funds — especially for those that might be overweighted toward large caps.
Should you buy stock in iShares Trust – iShares Morningstar Small-Cap Value ETF right now?
Before you buy stock in iShares Trust – iShares Morningstar Small-Cap Value ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and iShares Trust – iShares Morningstar Small-Cap Value ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $407,004!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,244,599!*
Now, it’s worth noting Stock Advisor’s total average return is 924% — a market-crushing outperformance compared to 210% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Andy Gould has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
