iShares Small-Cap Value Comparison: ISCV vs. IWN

The iShares Morningstar Small-Cap Value ETF (ISCV) and the iShares Russell 2000 Value ETF (IWN) provide distinct pathways for investors targeting undervalued small-cap U.S. equities. While both funds offer broad diversification, they differ significantly in cost, liquidity, and benchmark tracking. ISCV tracks a Morningstar index and prioritizes cost efficiency. It is notably more affordable, charging an annual expense ratio of just 0.06%, and delivers a slightly higher payout with a 1.9% dividend yield. The fund holds approximately 1,072 stocks, with its portfolio leaning toward financial services (21%), consumer cyclicals (14%), and industrials (12%). Key holdings include Moderna, CF Industries, and Alcoa Corp. In contrast, IWN is benchmarked to the Russell 2000 Value Index and spreads its assets across roughly 1,400 companies. While it is more expensive with a 0.24% expense ratio, its significantly larger assets under management (AUM) provide the high liquidity necessary for active traders. IWN's sector mix is slightly more concentrated in financial services at 24%, with industrials comprising 13% of the portfolio. Notable holdings include Echostar, TTM Technologies, and Coeur Mining. Ultimately, the selection between the two depends on investor priorities. ISCV is positioned as a strong choice for long-term buy-and-hold investors due to its lower overhead and higher yield. IWN remains the preferred vehicle for those who trade frequently and require the ability to enter and exit large positions with minimal slippage.