ISCB vs SPY
iShares Morningstar Small-Cap ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
ISCB has a lower expense ratio. ISCB delivered stronger 1-year returns. ISCB offers more diversification with 1305 holdings.
Side-by-Side Comparison
| Metric | ISCB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.09% | |
| AUM | $283M | $789.1B | |
| Dividend Yield | 1.26% | 1.01% | |
| Holdings | 1,587 | 505 | |
| YTD Return | +17.70% | +13.79% | |
| 1Y Return | +31.65% | +23.66% | |
| 3Y Return (annualized) | +16.22% | +21.40% | |
| 5Y Return (annualized) | +7.76% | +13.37% | |
| Volatility (annualized) | 19.7% | 15.3% | |
| Max Drawdown | -61.9% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jun 28, 2004 | Jan 22, 1993 |
ISCB vs SPY Performance
iShares Morningstar Small-Cap ETF (ISCB) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year ISCB returned +31.65% while SPY returned +23.66%. Year to date, ISCB is up 17.70% versus a gain of 13.79% for SPY.
Over three years, ISCB compounded at +16.22% per year against +21.40% for SPY; over five years the annualized figures are +7.76% and +13.37% respectively. Across the full 22-year window we track, SPY has the edge at +8.85% annualized vs +8.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ISCB has been the more volatile fund, with annualized monthly volatility of 19.7% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -61.9% for ISCB and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ISCB charges 0.04% per year while SPY charges 0.09%. On a $10,000 position that is $4 vs $9 annually, a gap of $5 per year that compounds over a long holding period. On income, ISCB currently yields 1.26% against 1.01% for SPY.
Holdings Overlap
ISCB and SPY share 64 holdings out of 1744 unique holdings combined, representing a 1.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ISCB or SPY?
ISCB has an expense ratio of 0.04% while SPY charges 0.09%. ISCB is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, ISCB or SPY?
Over the past year ISCB returned +31.65% vs +23.66% for SPY, so ISCB leads on 1-year performance. Over the longest common window we track (22 years), ISCB annualized +8.05% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, ISCB or SPY?
ISCB has been the more volatile fund at 19.7% annualized versus 15.3% for SPY. Worst drawdown: ISCB -61.9% vs SPY -56.5%.
Should I hold both ISCB and SPY?
ISCB and SPY have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ISCB and SPY?
ISCB and SPY share 64 common holdings with a 1.1% weight overlap. Combined, they hold 1744 unique securities.
Which pays a higher dividend, ISCB or SPY?
ISCB yields 1.26% while SPY yields 1.01%, so ISCB currently pays the higher dividend yield.
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