FLQS vs. ISCG

Last updated Jun 23, 2026

FLQS (Franklin LibertyQ U.S. Small Cap Equity ETF) and ISCG (iShares Morningstar Small-Cap Growth ETF) are both Small Cap Growth Equities funds - FLQS tracks the LibertyQ U.S. Small Cap Equity Index while ISCG tracks the Morningstar US Small Cap Broad Growth Extended Index. Both are passively managed. Over the past 5 years, FLQS returned 6.10%/yr vs 5.29%/yr for ISCG. Their correlation of 0.81 suggests significant overlap in exposure. FLQS charges 0.35%/yr vs 0.06%/yr for ISCG.

Performance

FLQS vs. ISCG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) and iShares Morningstar Small-Cap Growth ETF (ISCG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FLQS achieves a 10.18% return, which is significantly lower than ISCG's 15.33% return.

FLQS

• 1D: 0.27%
• 1M: 4.08%
• YTD: 10.18%
• 6M: 7.92%
• 1Y: 19.03%
• 3Y*: 13.04%
• 5Y*: 6.10%
• 10Y*: —

ISCG

• 1D: 0.09%
• 1M: 3.57%
• YTD: 15.33%
• 6M: 11.70%
• 1Y: 33.36%
• 3Y*: 17.90%
• 5Y*: 5.29%
• 10Y*: 12.03%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FLQS vs. ISCG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLQS Franklin LibertyQ U.S. Small Cap Equity ETF	10.18%	5.04%	8.34%	21.28%	-16.88%	26.58%	10.51%	18.34%	-5.86%	7.41%
ISCG iShares Morningstar Small-Cap Growth ETF	15.33%	12.88%	13.35%	23.13%	-26.75%	-1.26%	43.41%	27.66%	-6.91%	15.37%

Correlation

The correlation between FLQS and ISCG is 0.83, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (All Time) Calculated using the full available price history since Apr 28, 2017	0.81

The correlation between FLQS and ISCG shifts across timeframes, from 0.81 (all time) to 0.91 (5 years), reflecting how their relationship changes across market environments.

FLQS vs. ISCG - Sectors Allocation Comparison

Sectors	FLQS	ISCG
Technology	18.2%	22.0%
Industrials	16.0%	24.4%
Consumer Cyclical	15.0%	8.8%
Financial Services	12.7%	9.9%
Healthcare	9.9%	16.8%
Consumer Defensive	7.8%	2.7%
Real Estate	6.7%	4.8%
Utilities	5.7%	1.1%
Energy	4.2%	3.3%
Basic Materials	2.1%	3.2%
Communication Services	1.8%	2.8%

Return for Risk

FLQS vs. ISCG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FLQS

FLQS Risk / Return Rank: 39
FLQS Sharpe Ratio Rank: 36
FLQS Sortino Ratio Rank: 38
FLQS Omega Ratio Rank: 34
FLQS Calmar Ratio Rank: 44
FLQS Martin Ratio Rank: 40

ISCG

ISCG Risk / Return Rank: 56
ISCG Sharpe Ratio Rank: 55
ISCG Sortino Ratio Rank: 54
ISCG Omega Ratio Rank: 49
ISCG Calmar Ratio Rank: 61
ISCG Martin Ratio Rank: 64

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FLQS vs. ISCG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) and iShares Morningstar Small-Cap Growth ETF (ISCG). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FLQS	ISCG	Difference
Sharpe ratio: Return per unit of total volatility	1.25	1.80	-0.55
Sortino ratio: Return per unit of downside risk	1.92	2.52	-0.60
Omega ratio: Gain probability vs. loss probability	1.22	1.30	-0.08
Calmar ratio: Return relative to maximum drawdown	2.12	2.93	-0.81
Martin ratio: Return relative to average drawdown	6.28	11.16	-4.89

FLQS vs. ISCG - Sharpe Ratio Comparison

The current FLQS Sharpe Ratio is 1.25, which is lower than the ISCG Sharpe Ratio of 1.80. The chart below compares the historical Sharpe Ratios of FLQS and ISCG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FLQS vs. ISCG - Drawdown Comparison

The maximum FLQS drawdown since its inception was -42.16%, smaller than the maximum ISCG drawdown of -57.72%. Use the drawdown chart below to compare losses from any high point for FLQS and ISCG.

Drawdown Indicators

	FLQS	ISCG	Difference
Max Drawdown Largest peak-to-trough decline	-42.16%	-57.72%	+15.56%
Max Drawdown (1Y) Largest decline over 1 year	-9.00%	-11.43%	+2.43%
Max Drawdown (3Y) Largest decline over 3 years	-23.12%	-26.71%	+3.59%
Max Drawdown (5Y) Largest decline over 5 years	-28.05%	-37.80%	+9.75%
Max Drawdown (10Y) Largest decline over 10 years	—	-41.48%	—
Current Drawdown Current decline from peak	-0.23%	0.00%	-0.23%
Average Drawdown Average peak-to-trough decline	-7.97%	-11.61%	+3.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.04%	3.00%	+0.04%

Volatility

FLQS vs. ISCG - Volatility Comparison

The current volatility for Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) is 3.70%, while iShares Morningstar Small-Cap Growth ETF (ISCG) has a volatility of 5.78%. This indicates that FLQS experiences smaller price fluctuations and is considered to be less risky than ISCG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLQS	ISCG	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.70%	5.78%	-2.08%
Volatility (6M) Calculated over the trailing 6-month period	10.46%	13.64%	-3.18%
Volatility (1Y) Calculated over the trailing 1-year period	15.31%	18.60%	-3.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.22%	23.03%	-3.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.64%	23.20%	-1.56%

FLQS vs. ISCG - Expense Ratio Comparison

FLQS has a 0.35% expense ratio, which is higher than ISCG's 0.06% expense ratio.

Dividends

FLQS vs. ISCG - Dividend Comparison

FLQS's dividend yield for the trailing twelve months is around 1.31%, more than ISCG's 0.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FLQS Franklin LibertyQ U.S. Small Cap Equity ETF	1.31%	1.16%	1.29%	1.75%	1.40%	0.95%	1.20%	1.41%	1.27%	1.02%	0.00%	0.00%
ISCG iShares Morningstar Small-Cap Growth ETF	0.58%	0.61%	0.84%	0.77%	0.92%	0.62%	0.10%	0.27%	0.40%	0.52%	1.19%	0.64%

Frequently Asked Questions

Can I hold both FLQS and ISCG in my portfolio?

FLQS and ISCG have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FLQS or ISCG?

ISCG has higher volatility (5.78%) compared to FLQS (3.70%). In terms of maximum drawdown, FLQS dropped -42.16% vs ISCG's -57.72%.

Which ETF is better, FLQS or ISCG?

On 5-year performance, FLQS leads with 6.10% vs 5.29% for ISCG. On fees, ISCG is cheaper at 0.06% per year. On volatility, FLQS has been the lower-risk option at 3.70%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLQS or ISCG?

Over the 5-year period, FLQS has performed better with a 6.10% return vs 5.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLQS or ISCG?

ISCG is cheaper with a 0.06% expense ratio, compared with 0.35% for FLQS.

Which ETF pays a higher dividend yield, FLQS or ISCG?

FLQS has the higher dividend yield at 1.31%, compared with 0.58% for ISCG.

What is the main difference between FLQS and ISCG?

FLQS tracks LibertyQ U.S. Small Cap Equity Index, while ISCG tracks Morningstar US Small Cap Broad Growth Extended Index. They also come from different issuers: Franklin Templeton and iShares. Their fees differ too: 0.35% for FLQS and 0.06% for ISCG.

Which has better risk-adjusted returns?

ISCG currently has the higher Sharpe Ratio (1.80 vs 1.25), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.