ISCB vs. FDM

Last updated Jul 14, 2026

ISCB (iShares Morningstar Small-Cap ETF) and FDM (First Trust Dow Jones Select MicroCap Index Fund) are both Small Cap Blend Equities funds - ISCB tracks the Morningstar US Small Cap Extended Index while FDM tracks the Dow Jones Select Microcap Index. Both are passively managed. Over the past 10 years, ISCB returned 9.20%/yr vs 11.67%/yr for FDM. Their correlation of 0.89 suggests significant overlap in exposure. ISCB charges 0.04%/yr vs 0.60%/yr for FDM.

Performance

ISCB vs. FDM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Morningstar Small-Cap ETF (ISCB) and First Trust Dow Jones Select MicroCap Index Fund (FDM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ISCB achieves a 14.59% return, which is significantly lower than FDM's 15.49% return. Over the past 10 years, ISCB has underperformed FDM with an annualized return of 9.20%, while FDM has yielded a comparatively higher 11.67% annualized return.

ISCB

• 1D: -0.54%
• 1M: 0.95%
• 6M: 9.05%
• YTD: 14.59%
• 1Y: 25.73%
• 3Y*: 14.90%
• 5Y*: 7.28%
• 10Y*: 9.20%

FDM

• 1D: -0.17%
• 1M: 1.68%
• 6M: 11.76%
• YTD: 15.49%
• 1Y: 28.57%
• 3Y*: 18.64%
• 5Y*: 10.90%
• 10Y*: 11.67%

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

ISCB vs. FDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ISCB iShares Morningstar Small-Cap ETF	14.59%	12.46%	10.90%	19.51%	-19.04%	17.46%	6.29%	29.42%	-13.92%	12.95%
FDM First Trust Dow Jones Select MicroCap Index Fund	15.49%	18.64%	13.00%	12.76%	-11.61%	35.08%	-4.04%	27.45%	-13.53%	8.72%

Correlation

The correlation between ISCB and FDM is 0.77, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.77
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (10Y) Calculated over the trailing 10-year period	0.88
Correlation (All Time) Calculated using the full available price history since Sep 30, 2005	0.89

The correlation between ISCB and FDM shifts across timeframes, from 0.77 (1 year) to 0.89 (5 years), reflecting how their relationship changes across market environments.

ISCB vs. FDM - Sectors Allocation Comparison

Sectors	ISCB	FDM
Industrials	18.5%	14.9%
Technology	16.0%	6.8%
Financial Services	15.6%	42.2%
Healthcare	13.5%	6.2%
Consumer Cyclical	11.4%	10.4%
Real Estate	8.1%	1.4%
Basic Materials	4.6%	4.5%
Energy	4.5%	4.6%
Consumer Defensive	3.2%	4.5%
Communication Services	2.6%	3.3%
Utilities	2.2%	1.0%

Return for Risk

ISCB vs. FDM — Risk / Return Rank

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

ISCB

ISCB Risk / Return Rank: 62
ISCB Sharpe Ratio Rank: 59
ISCB Sortino Ratio Rank: 61
ISCB Omega Ratio Rank: 54
ISCB Calmar Ratio Rank: 69
ISCB Martin Ratio Rank: 68

FDM

FDM Risk / Return Rank: 63
FDM Sharpe Ratio Rank: 58
FDM Sortino Ratio Rank: 61
FDM Omega Ratio Rank: 55
FDM Calmar Ratio Rank: 75
FDM Martin Ratio Rank: 68

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.

ISCB vs. FDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Morningstar Small-Cap ETF (ISCB) and First Trust Dow Jones Select MicroCap Index Fund (FDM). 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.

	ISCB	FDM	Difference
Sharpe ratio: Return per unit of total volatility	1.56	1.54	+0.02
Sortino ratio: Return per unit of downside risk	2.29	2.27	+0.02
Omega ratio: Gain probability vs. loss probability	1.27	1.27	0.00
Calmar ratio: Return relative to maximum drawdown	2.75	3.09	-0.34
Martin ratio: Return relative to average drawdown	9.82	9.63	+0.19

ISCB vs. FDM - Sharpe Ratio Comparison

The current ISCB Sharpe Ratio is 1.56, which is comparable to the FDM Sharpe Ratio of 1.54. The chart below compares the historical Sharpe Ratios of ISCB and FDM, 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

ISCB vs. FDM - Drawdown Comparison

The maximum ISCB drawdown since its inception was -61.25%, roughly equal to the maximum FDM drawdown of -63.45%. Use the drawdown chart below to compare losses from any high point for ISCB and FDM.

Drawdown Indicators

	ISCB	FDM	Difference
Max Drawdown Largest peak-to-trough decline	-61.25%	-63.45%	+2.20%
Max Drawdown (1Y) Largest decline over 1 year	-9.39%	-9.30%	-0.09%
Max Drawdown (3Y) Largest decline over 3 years	-26.22%	-23.47%	-2.75%
Max Drawdown (5Y) Largest decline over 5 years	-29.94%	-23.74%	-6.20%
Max Drawdown (10Y) Largest decline over 10 years	-44.18%	-47.76%	+3.58%
Current Drawdown Current decline from peak	-1.91%	-2.62%	+0.71%
Average Drawdown Average peak-to-trough decline	-9.76%	-11.30%	+1.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.63%	2.97%	-0.34%

Volatility

ISCB vs. FDM - Volatility Comparison

The current volatility for iShares Morningstar Small-Cap ETF (ISCB) is 4.00%, while First Trust Dow Jones Select MicroCap Index Fund (FDM) has a volatility of 4.24%. This indicates that ISCB experiences smaller price fluctuations and is considered to be less risky than FDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ISCB	FDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.00%	4.24%	-0.24%
Volatility (6M) Calculated over the trailing 6-month period	11.58%	13.24%	-1.66%
Volatility (1Y) Calculated over the trailing 1-year period	16.59%	18.67%	-2.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.37%	21.35%	+0.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.61%	23.32%	-0.71%

ISCB vs. FDM - Expense Ratio Comparison

ISCB has a 0.04% expense ratio, which is lower than FDM's 0.60% expense ratio.

Dividends

ISCB vs. FDM - Dividend Comparison

ISCB's dividend yield for the trailing twelve months is around 1.29%, less than FDM's 1.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDM First Trust Dow Jones Select MicroCap Index Fund	1.37%	1.43%	1.56%	1.81%	1.80%	1.08%	1.68%	1.37%	1.26%	0.97%	1.13%	1.45%
ISCB iShares Morningstar Small-Cap ETF	1.29%	1.38%	1.31%	1.49%	1.63%	1.26%	1.26%	1.25%	1.60%	1.24%	1.58%	1.40%

Frequently Asked Questions

Can I hold both ISCB and FDM in my portfolio?

ISCB and FDM have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ISCB or FDM?

FDM has higher volatility (4.24%) compared to ISCB (4.00%). In terms of maximum drawdown, ISCB dropped -61.25% vs FDM's -63.45%.

Which ETF is better, ISCB or FDM?

On 10-year performance, FDM leads with 11.67% vs 9.20% for ISCB. On fees, ISCB is cheaper at 0.04% per year. On volatility, ISCB has been the lower-risk option at 4.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ISCB or FDM?

Over the 10-year period, FDM has performed better with a 11.67% return vs 9.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ISCB or FDM?

ISCB is cheaper with a 0.04% expense ratio, compared with 0.60% for FDM.

Which ETF pays a higher dividend yield, ISCB or FDM?

FDM has the higher dividend yield at 1.37%, compared with 1.29% for ISCB.

What is the main difference between ISCB and FDM?

ISCB tracks Morningstar US Small Cap Extended Index, while FDM tracks Dow Jones Select Microcap Index. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.04% for ISCB and 0.60% for FDM.

Which has better risk-adjusted returns?

ISCB currently has the higher Sharpe Ratio (1.56 vs 1.54), 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.