ISCV vs. SLYV: Which Small-Cap ETF Is the Better Buy Right Now?
Key Points
ISCV charges a lower expense ratio, but offers a slightly lower dividend yield than SLYV.
ISCV has outperformed SLYV in one-year and five-year total return, with a milder recent drawdown.
ISCV holds more positions and is less volatile, but SLYV offers much higher assets under management and deeper liquidity.
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The iShares Morningstar Small-Cap Value ETF (NYSEMKT:ISCV) stands out for its lower cost, broader diversification, and stronger recent performance, while the State Street SPDR S&P 600 Small Cap Value ETF (NYSEMKT:SLYV) commands greater assets, trading volume, and a slightly higher dividend yield.
Both the iShares Morningstar Small-Cap Value ETF (ISCV) and the State Street SPDR S&P 600 Small Cap Value ETF (SLYV) target U.S. small-cap stocks with value characteristics, but they employ different approaches in portfolio construction and management costs. This matchup compares the two popular ETFs in terms of returns, risk, sector tilts, and practical considerations for investors seeking small-cap value exposure.
Snapshot (cost & size)
| Metric | SLYV | ISCV |
|---|---|---|
| Issuer | SPDR | IShares |
| Expense ratio | 0.15% | 0.06% |
| 1-yr return (as of 2025-12-18) | 3.6% | 7.3% |
| Dividend yield | 2.1% | 1.9% |
| Beta | 1.25 | 1.22 |
| AUM | $4.1 billion | $574.8 million |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The one-year return represents total return over the trailing 12 months.
ISCV is more affordable on fees, with an expense ratio of 0.06% compared to SLYV's 0.15%.
Performance & risk comparison
| Metric | SLYV | ISCV |
|---|---|---|
| Max drawdown (5 y) | (28.68%) | (25.35%) |
| Growth of $1,000 over 5 years | $1,549 | $1,638 |
What's inside
ISCV tracks a broad collection of small-cap U.S. value stocks, holding 1,101 positions as of Dec. 2025. Its sector mix leans Financial Services (24%), Consumer Cyclical (15%), and Industrials (14%). The largest holdings --Sandisk, Rocket, and Annaly Capital Management -- are each under 1% of assets, signaling a highly diversified approach. The fund has a track record of 21 years, and the most recent ex-dividend date was Dec. 16, 2025.
SLYV, by contrast, holds 454 stocks and maintains a similar sector weighting, with Financial Services at 23%, Consumer Cyclical at 16%, and Industrials at 15%. Its top holdings -- Borgwarner, Hecla Mining, and Lincoln National -- carry slightly higher portfolio weights. SLYV’s much larger assets under management may appeal to those prioritizing liquidity, but both ETFs avoid leverage, currency hedging, or environmental, social, and governance screens.
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What this means for investors
Over the last two decades, ISCV and SLYV have generated very similar annualized total returns at 8.4% and 8.3%, respectively. ISCV has performed better across the last one and five years, however, and has done saw with a lesser drawdown and a much lower expense ratio.
That said, SLYV may be the better option for income-focused investors. Not only is its 2.1% dividend yield slightly higher than ISCV's 1.9%, but its dividend growth rates have been far superior over the last five and ten years. SLVY has increased its dividend payments by 14% annually over the past five years and by 9% each year over the previous decade. ISCV's growth is only 8% and 3% annually over the same time periods.
Ultimately, both are fine small-cap ETF options, but it depends on whether an investor prefers ISCV's lower expenses and reduced volatility or SLYV's slightly higher dividend yield, dividend growth, and stronger liquidity.
Glossary
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: Annual dividends paid by a fund divided by its share price, expressed as a percentage.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Drawdown: The percentage decline from a fund’s peak value to its lowest point over a specific period.
Assets under management (AUM): The total market value of all assets managed by a fund.
Liquidity: How easily and quickly an asset or fund can be bought or sold without affecting its price.
Beta: A measure of a fund’s volatility compared to the overall market, typically the S&P 500.
Ex-dividend date: The cutoff date to be eligible for the next dividend payment; shares bought after this date do not receive the dividend.
Portfolio weighting: The percentage of a fund’s assets allocated to a particular holding or sector.
Sector weighting: The proportion of a fund’s assets invested in specific industry sectors.
Leverage: The use of borrowed money to increase the potential return of an investment.
Currency hedging: Strategies used by funds to reduce the impact of currency exchange rate fluctuations on returns.
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Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Companies. The Motley Fool recommends BorgWarner. The Motley Fool has a disclosure policy.
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