Small-Cap ETFs: ISCB Outperforms, but SPSM Yields More

2 hours ago 2

Sarah Sidlow, The Motley Fool

Sat, January 17, 2026 astatine 7:44 AM CST 5 min read

ISCB outperformed SPSM implicit the past twelvemonth but carries a somewhat higher disbursal ratio and little dividend yield.
ISCB holds implicit doubly arsenic galore stocks arsenic SPSM, with a modestly antithetic assemblage tilt toward industrials and technology.
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Both the iShares Morningstar Small-Cap ETF (NYSEMKT:ISCB) and the State Street SPDR Portfolio S&P 600 Small Cap ETF (NYSEMKT:SPSM) purpose to springiness investors entree to U.S. small-cap stocks, but they disagree successful portfolio breadth, costs, and day-to-day usability. The iShares Morningstar Small-Cap ETF stands retired for its broader portfolio and caller outperformance, portion the State Street SPDR Portfolio S&P 600 Small Cap ETF offers little costs, larger assets nether absorption (AUM), and greater liquidity for investors.

This examination highlights wherever each ETF whitethorn appeal, focusing connected caller results, portfolio makeup, risk, and applicable considerations for investors seeking small-cap exposure.

Metric

SPSM

ISCB

Issuer	SPDR	IShares
Expense ratio	0.03%	0.04%
1-yr instrumentality (as of 2026-01-09)	11.2%	17.46%
Dividend yield	1.62%	1.38%
AUM	$13.08 billion	$253.45 million

The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

SPSM is much affordable with a somewhat little disbursal ratio and a marginally higher dividend yield, making it appealing for cost-conscious, income-focused investors. ISCB, portion a spot pricier, offers broader diversification and stronger caller performance.

Metric

SPSM

ISCB

Max drawdown (5 y)	(34.83%)	(32.26%)
Growth of $1,000 implicit 5 years	$1,290	$1,323

ISCB tracks a wide handbasket of 1,578 small-cap U.S. stocks, with its largest assemblage weights successful industrials (19%), fiscal services (17%), and healthcare (13.9%). The fund's apical holdings -- Lumentum Holdings (NASDAQ:LITE), Albemarle Corp (NYSE:ALB), and Kratos Defense and Security Solutions (NASDAQ:KTOS) -- each relationship for little than fractional a percent of assets, supporting wide diversification. With a money property of 21.5 yrs, ISCB brings semipermanent continuity and a tilt toward industrials and exertion compared to peers.

SPSM, by contrast, holds 607 U.S. small-cap stocks and leans somewhat much toward fiscal services (18%), followed by industrials (16%) and exertion (15%). Its apical positions -- Arrowhead Pharmaceuticals (NASDAQ:ARWR), Sanmina Corp. (NASDAQ:SANM), and Advanced Energy Industries (NASDAQ:AEIS) -- are besides humble successful size, reflecting wide marketplace exposure. SPSM’s operation and assemblage premix marque it a straightforward, low-cost enactment for small-cap exposure.