ISCG vs. RZG: Which Small-Cap Growth ETF Fits Your Portfolio?

By Seena Hassouna – Mar 15, 2026 at 9:54PM ESTKey PointsISCG charges a much lower expense ratio and is nearly eight times larger than RZG.Both funds delivered similar strong gains over the past year, but ISCG holds over seven times as many stocks, spreading risk more broadly.RZG leans more heavily into healthcare and technology, while ISCG puts greater weight on industrials.The iShares Morningstar Small-Cap Growth ETF (NYSEMKT:ISCG) stands out for its low cost, extensive diversification, and larger assets under management (AUM), while the Invesco S&P SmallCap 600 Pure Growth ETF (NYSEMKT:RZG) offers a more concentrated small-cap growth approach with heavier sector tilts.Both ISCG and RZG target U.S. small-cap growth stocks, but they take notably different approaches to portfolio construction and cost.†Snapshot (cost & size)MetricRZGISCGIssuerInvescoISharesExpense ratio0.35%0.06%1-yr return (as of 2026-03-13)25.2%25.9%Dividend yield0.34%0.68%Beta1.151.33AUM$113.8 million$923.8 millionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.ISCG is meaningfully more affordable thanks to its 0.06% expense ratio versus 0.35% for RZG, and it also delivers a slightly higher payout with a 0.6% yield compared to RZG’s 0.34%.Performance & risk comparisonMetricRZGISCGMax drawdown (5 y)-38.31%-41.50%Growth of $1,000 over 5 years$1,016$1,044What's insideISCG tracks a broad index of nearly 1,000 small-cap U.S. growth stocks, with 25% in industrials, 21% in technology, and 16% in healthcare. Its top holdings—Lumentum Holdings Inc (LITE +1.04%), Ati Inc (ATI 2.83%), and Rbc Bearings Inc (RBC 1.88%)—each make up less than 2% of assets, reflecting a highly diversified portfolio. The fund has a long track record at over 21 years, and no leverage, hedging, or other unusual quirks are present.By contrast, RZG is more concentrated, holding about 130 stocks with bigger bets on healthcare (24%) and technology (19%). Its largest positions—ACM Research Inc (ACMR +2.19%), Clear Secure Inc (YOU 0.40%), and Powell Industries Inc (POWL 2.11%)—hover around 1.5% each. Both funds avoid leverage and complex strategies, but RZG’s narrower focus may appeal to investors seeking more targeted growth exposure.For more guidance on ETF investing, check out the full guide at this link.What this means for investorsSmall-cap growth is a category where cost and construction choices matter more than they might seem. ISCG and RZG both target U.S. small-cap growth stocks, but they get there differently.The cost gap is hard to ignore. ISCG's 0.06% expense ratio is nearly six times cheaper than RZG's 0.35%. Over a long holding period, that drag compounds. ISCG also runs nearly eight times the assets, which means tighter spreads and easier entry and exit for most investors.Where it gets more nuanced is performance. RZG's five-year return edge comes partly from its concentrated approach — roughly 130 stocks vs. ISCG's nearly 1,000, with heavier bets on healthcare. But concentration cuts both ways, and both funds have underperformed the S&P 500 over the last five years with nearly identical max drawdowns. The extra cost of RZG needs to be justified by that targeted tilt, and whether it is depends on what you're building toward.TMF Writers add your take here...Read NextMar 12, 2026 •By Sara AppinoIJT Plays Small-Cap Growth With Guardrails, ISCG Goes All InFeb 23, 2026 •By Katie BrockmanBetter Buy: How Small-Cap ETFs ISCG and IJT Compare on Fees, Risk, and IncomeJan 24, 2026 •By Jake LerchISCG vs. RZG: How Do These Small Cap ETFs Measure Up to One Another?Jan 24, 2026 •By Sarah SidlowInvesting in Small-Cap ETFs: ISCG's Lower Fees or SLYG's Higher Dividend?Stocks MentionediShares Trust - iShares Morningstar Small-Cap Growth ETFNYSEMKT: ISCG$54.96(-0.20%)-$0.11Invesco Exchange-Traded Fund Trust - Invesco S&P SmallCap 600 Pure Growth ETFNYSEMKT: RZG$55.63(-0.04%)-$0.02*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.