ISCG vs VYM
iShares Morningstar Small-Cap Growth ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. ISCG delivered stronger 1-year returns. ISCG offers more diversification with 877 holdings.
Side-by-Side Comparison
| Metric | ISCG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.04% | |
| AUM | $975M | $79.0B | |
| Dividend Yield | 0.57% | 2.86% | |
| Holdings | 939 | 568 | |
| YTD Return | +16.86% | +16.16% | |
| 1Y Return | +30.35% | +26.05% | |
| 3Y Return (annualized) | +17.31% | +18.43% | |
| 5Y Return (annualized) | +6.13% | +12.21% | |
| Volatility (annualized) | 19.6% | 14.6% | |
| Max Drawdown | -58.0% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 28, 2004 | Nov 10, 2006 |
ISCG vs VYM Performance
iShares Morningstar Small-Cap Growth ETF (ISCG) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ISCG returned +30.35% while VYM returned +26.05%. Year to date, ISCG is up 16.86% versus a gain of 16.16% for VYM.
Over three years, ISCG compounded at +17.31% per year against +18.43% for VYM; over five years the annualized figures are +6.13% and +12.21% respectively. Across the full 20-year window we track, ISCG has the edge at +9.28% annualized vs +7.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ISCG has been the more volatile fund, with annualized monthly volatility of 19.6% compared with 14.6% for VYM. 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 -58.0% for ISCG and -58.8% for VYM. 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ISCG charges 0.06% per year while VYM charges 0.04%. On a $10,000 position that is $6 vs $4 annually, a gap of $2 per year that compounds over a long holding period. On income, ISCG currently yields 0.57% against 2.86% for VYM.
Holdings Overlap
ISCG and VYM share 88 holdings out of 1347 unique holdings combined, representing a 2.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ISCG or VYM?
ISCG has an expense ratio of 0.06% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, ISCG or VYM?
Over the past year ISCG returned +30.35% vs +26.05% for VYM, so ISCG leads on 1-year performance. Over the longest common window we track (20 years), ISCG annualized +9.28% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, ISCG or VYM?
ISCG has been the more volatile fund at 19.6% annualized versus 14.6% for VYM. Worst drawdown: ISCG -58.0% vs VYM -58.8%.
Should I hold both ISCG and VYM?
ISCG and VYM have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ISCG and VYM?
ISCG and VYM share 88 common holdings with a 2.1% weight overlap. Combined, they hold 1347 unique securities.
Which pays a higher dividend, ISCG or VYM?
ISCG yields 0.57% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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