Which Small-Cap Value ETF Is Better: State Street's SLYV or iShares' ISCV?
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By Josh Kohn-Lindquist – Apr 24, 2026 at 3:51PM ESTKey PointsISCV offers a lower expense ratio and matches SLYV’s dividend yield at 2%.ISCV saw a smaller five-year drawdown and has nearly twice as many holdings.ISCV provides broader diversification across small-cap value stocks.The State Street SPDR S&P 600 Small Cap Value ETF (SLYV +0.42%) and the iShares Morningstar Small-Cap Value ETF (ISCV 0.20%) both target U.S. small-cap value stocks, but SLYV has shown stronger recent performance, while ISCV stands out for lower fees and broader diversification.Both SLYV and ISCV aim to capture the U.S. small-cap value segment, but they do so with some notable differences in portfolio makeup, cost, and recent returns. This comparison unpacks those distinctions to help investors weigh which approach best suits their needs.Snapshot (cost & size)MetricSLYVISCVIssuerState StreetISharesExpense ratio0.15%0.06%1-yr return (as of 2026-04-22)45.1%36.1%Dividend yield2.01%2.03%Beta1.211.20AUM$4.1 billion$600.6 millionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The one-year return represents total return over the trailing 12 months.ISCV is more affordable, charging just 0.06% compared to SLYV’s 0.15%, and both ETFs currently offer a 2% dividend yield, making them similar in income potential but distinct in cost.Performance & risk comparisonMetricSLYVISCVMax drawdown (5 y)-28.67%-25.34%Growth of $1,000 over 5 years$1,356$1,420What's insideISCV tracks a diverse group of over 1,000 U.S. small-cap value stocks, with sector weights led by Financial Services (21%), Consumer Cyclical (14%), and Industrials (12%). Its largest positions, such as Moderna, CF Industries, and Alcoa, each make up less than 1% of the fund, supporting broad diversification. With a fund age of nearly 22 years, ISCV has an established track record and no special quirks or overlays.SLYV, in contrast, holds around 460 companies and also skews toward Financial Services, Consumer Cyclical, and Industrials, with slightly higher weights in those sectors. Its top holdings include Eastman Chemical, Match Group, and LKQ, with similarly small position sizes. Both funds focus on value characteristics, but SLYV’s portfolio is more concentrated, which may impact volatility and sector exposure.For more guidance on ETF investing, check out the full guide at this link.What this means for investorsSince hitting the public markets, SLYV and ISCV have delivered annualized total returns of 9.3% and 8.7%, slightly lagging the S&P 500’s historical returns over time. Ultimately, I think both ETFs are solid choices for investors looking to gain exposure to U.S. small-cap value stocks, and their similar total returns support this view.Both have reasonably low expense ratios, 2% dividend yields, 1.2 betas, hold hundreds of stocks, and have smashed the broader market over the last year. However, they take slightly different approaches to reach somewhat similar returns. SLYV merely seeks to track the returns of the S&P SmallCap 600 Value Index. Meanwhile, ISCV targets the deepest discounts through the Morningstar U.S.
Small Value Extended Index. Also, the S&P SmallCap 600 Value Index has a profitability screen, where the Morningstar U.S.
Small Value Extended Index does not, so ISCV may focus more on “deep” value.Because the ETFs’ returns are similar, yet their investment strategies differ, it is up to investors interested in these two investment vehicles to choose which one best fits them. Personally, I like the added filter that ISCV stocks go through, so I would lean toward it when choosing between the two. Furthermore, its expense ratio is only 0.06% compared to SLYV’s 0.15%, making it marginally “cheaper,” which supports this decision. Realistically, for investors, both are fine.Read NextApr 24, 2026 •By Emma NewberyStock Market Today, April 24: S&P 500 and Nasdaq Set New Highs on Tech SurgeApr 24, 2026 •By Matthew BenjaminThe White House Just Closed Its Investigation of Fed Chair Powell. Here's What It Means for Markets.Apr 24, 2026 •By Will HealySLV Delivers Stronger Long Term Gains Than SGDMApr 24, 2026 •By Josh Kohn-LindquistWhich Dividend ETF Is Best for the Long Term: Fidelity's FDVV or Schwab's SCHD?Apr 24, 2026 •By Anders BylundThe Dow Is Down While the Nasdaq-100 Soars. Blame the Chips.Apr 24, 2026 •By John BallardVXUS vs. IEMG: Which International ETF Is the Better Buy?About the AuthorJosh Kohn-Lindquist is a contributing Motley Fool stock market analyst covering consumer goods, industrials, and technology stocks. Previously, Josh was a senior mutual fund accountant at Gemini Fund Services. He holds a bachelor’s degree in business management from the University of South Dakota.TMFJorykoX@JorykoliStocks MentionediShares Trust - iShares Morningstar Small-Cap Value ETFNYSEMKT: ISCV$73.91(-0.20%)-$0.14SPDR Series Trust - State Street SPDR S&P 600 Tm Small Cap Value ETFNYSEMKT: SLYV$102.67(+0.42%)+$0.43*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.