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<h2>Key Points</h2><ul><li>ISCG holds more stocks than VBK and has a much smaller asset base</li><li>Both ETFs delivered strong 1-year returns and similar max drawdowns</li><li>ISCG and VBK are closely matched on cost and yield, with only a minor difference in expense and payout rates</li><li>10 stocks we like better than iShares Trust - iShares Morningstar Small-Cap Growth ETF ›</li></ul><p><strong>Vanguard Small-Cap Growth ETF</strong> <span class="ticker">(NYSEMKT:VBK)</span> and<strong> iShares Morningstar Small-Cap Growth ETF</strong> <span class="ticker">(NYSEMKT:ISCG)</span> both offer diversified exposure to U.S. small-cap growth stocks, but differ in portfolio breadth, assets under management (AUM), and trading liquidity.</p><p>Both funds target the small-cap growth segment, with VBK tracking the CRSP U.S. Small Cap Growth Index and ISCG following a Morningstar methodology. This comparison looks at their respective costs, performance, risk, underlying holdings, and practical considerations for investors seeking to tap into smaller growth companies.</p><h2 id="snapshot-cost-amp-size">Snapshot (cost &amp; size)</h2><section><table><tbody><tr><th>Metric</th><th>VBK</th><th>ISCG</th></tr><tr><td>Issuer</td><td>Vanguard</td><td>IShares</td></tr><tr><td>Expense ratio</td><td>0.05%</td><td>0.06%</td></tr><tr><td>1-yr return (as of 2026-03-11)</td><td>23.0%</td><td>24.7%</td></tr><tr><td>Dividend yield</td><td>0.5%</td><td>0.6%</td></tr><tr><td>Beta</td><td>1.17</td><td>1.13</td></tr><tr><td>AUM</td><td>$40.0 billion</td><td>$881.5 million</td></tr></tbody></table></section><p><em>Beta measures price volatility relative to the S&amp;P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.</em></p><p>ISCG charges a slightly higher expense ratio than VBK, but the difference is just 0.01 percentage points, while ISCG also offers a marginally higher dividend yield.</p><h2 id="performance-amp-risk-comparison">Performance &amp; risk comparison</h2><section><table><tbody><tr><th>Metric</th><th>VBK</th><th>ISCG</th></tr><tr><td>Max drawdown (5 y)</td><td>-38.39%</td><td>-37.80%</td></tr><tr><td>Growth of $1,000 over 5 years</td><td>$1,097</td><td>$1,072</td></tr></tbody></table></section><h2 id="whatx27s-inside">What's inside</h2><p>ISCG holds 963 stocks, making it one of the broader small-cap growth ETFs, and has been running for over 21 years. Its sector mix leans toward industrials (25%), technology (21%), and healthcare (16%). The top holdings are <strong>Lumentum Holdings Inc</strong> <span class="ticker">(NASDAQ:LITE)</span>, <strong>Ati Inc</strong> <span class="ticker">(NYSE:ATI)</span>, and <strong>Rbc Bearings Inc</strong> <span class="ticker">(NYSE:RBC)</span>, with no single stock accounting for more than 1.7% of assets. The fund does not employ leverage, currency hedges, or ESG screens.</p><p>In contrast, VBK holds 579 stocks, with a higher allocation to technology (26%) and similar weightings to industrials (23%) and healthcare (17%). Its top positions are <strong>Rocket Lab Corp</strong> <span class="ticker">(NASDAQ:RKLB)</span>, <strong>Comfort Systems USA Inc</strong> <span class="ticker">(NYSE:FIX)</span>, and <strong>Sandisk Corp</strong> <span class="ticker">(NASDAQ:SNDK)</span>, each around 1.2%-1.3% of assets. VBK also avoids leverage or other structural quirks, tracking the CRSP U.S. Small Cap Growth Index for a straightforward approach.</p><p>For more guidance on ETF investing, check out the full guide at this link.</p><h2 id="what-this-means-for-investors">What this means for investors</h2><p>Exchange-traded funds (ETFs) are a great way for investors to gain exposure to U.S. small-cap stocks. Both the <strong>Vanguard Small-Cap Growth ETF</strong> (VBK) and<strong> iShares Morningstar Small-Cap Growth ETF</strong> (ISCG) offer compelling options for investors. Let’s delve into the pros and cons of each.</p><p>First, there’s VBK. In the head-to-head matchup with ISCG, VBK takes the gold on a few fronts. It has slightly lower fees (0.05% vs. 0.06%). It also has much higher AUM ($40.0 billion vs. $0.9 billion). This is important because AUM serves as an indicator of liquidity — that is, how easily an investor can buy or sell shares. Lastly, VBK has delivered a better return over the last five years.</p><p>As for ISCG, it has advantages, too. ISCG has delivered a better one-year return (24.7% vs. 23.0%). It also boasts a slightly higher dividend yield (0.6% vs. 0.5%). Finally, it has a higher concentration of industrial stocks than VBK, which may appeal to investors seeking an alternative to the tech-heavy tilt of many large or mega-cap ETFs.</p><p>In summary, VBK and ISCG are both appealing options for small-cap investors. VBK wins the matchup on fees, liquidity, and long-term performance. Meanwhile, ISCG takes the prize on long-term performance, dividend yield, and sector exposure. </p><h2>Should you buy stock in iShares Trust - iShares Morningstar Small-Cap Growth ETF right now?</h2>
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<p style="color: #767676; text-align: left"><em>*Stock Advisor returns as of March 17, 2026. </em></p><p><em>Jake Lerch has positions in Rocket Lab and has the following options: long December 2026 $30 puts on Rocket Lab. The Motley Fool has positions in and recommends Comfort Systems USA, Lumentum, RBC Bearings, Rocket Lab, and Vanguard Index Funds - Vanguard Small-Cap Growth ETF. The Motley Fool has a disclosure policy.</em></p>
<p>The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.</p>
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ISCG

<p>The comparison between iShares Morningstar Small-Cap Growth ETF (ISCG) and Vanguard Small-Cap Growth ETF (VBK) highlights key differences in fees, liquidity, and performance. ISCG has a higher one-year return (24.7% vs. 23.0%) and a slightly better dividend yield (0.6% vs. 0.5%), while VBK boasts lower fees (0.05% vs. 0.06%) and significantly higher assets under management ($40 billion vs. $881.5 million), indicating better liquidity. Both ETFs provide diversified exposure to U.S. small-cap growth stocks, but ISCG offers a broader portfolio with 963 stocks compared to VBK's 579. Investors should weigh these factors when choosing between the two.</p>

ISCG vs. VBK: Which ETF Offers Lower Fees, More Liquidity, and Greater Returns?