ISCB vs. HSMV

Last updated Jun 4, 2026

ISCB (iShares Morningstar Small-Cap ETF) and HSMV (First Trust Horizon Managed Volatility Small/Mid ETF) are both Small Cap Blend Equities funds. ISCB is passively managed, while HSMV is actively managed. Over the past 5 years, ISCB returned 5.72%/yr vs 3.69%/yr for HSMV. Their correlation of 0.87 suggests significant overlap in exposure. ISCB charges 0.04%/yr vs 0.80%/yr for HSMV.

Performance

ISCB vs. HSMV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Morningstar Small-Cap ETF (ISCB) and First Trust Horizon Managed Volatility Small/Mid ETF (HSMV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ISCB achieves a 11.43% return, which is significantly higher than HSMV's 3.11% return.

ISCB

• 1D: -0.67%
• 1M: 2.77%
• YTD: 11.43%
• 6M: 11.42%
• 1Y: 29.48%
• 3Y*: 16.41%
• 5Y*: 5.72%
• 10Y*: 9.30%

HSMV

• 1D: -0.50%
• 1M: -2.09%
• YTD: 3.11%
• 6M: 3.06%
• 1Y: 4.19%
• 3Y*: 8.36%
• 5Y*: 3.69%
• 10Y*: —

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

ISCB vs. HSMV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
ISCB iShares Morningstar Small-Cap ETF	11.43%	12.46%	10.90%	19.51%	-19.04%	17.46%	57.55%
HSMV First Trust Horizon Managed Volatility Small/Mid ETF	3.11%	1.57%	13.17%	5.01%	-9.44%	23.72%	34.70%

Correlation

The correlation between ISCB and HSMV is 0.67, 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	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (All Time) Calculated using the full available price history since Apr 8, 2020	0.87

Over the past year, the correlation between ISCB and HSMV has dropped to 0.67 - well below their long-term average of 0.87, suggesting their price drivers have been diverging.

ISCB vs. HSMV - Sectors Allocation Comparison

Sectors	ISCB	HSMV
Industrials	18.5%	15.0%
Financial Services	15.9%	16.6%
Technology	14.6%	1.7%
Healthcare	13.3%	4.9%
Consumer Cyclical	11.8%	7.8%
Real Estate	8.2%	23.8%
Energy	4.9%	2.8%
Basic Materials	4.6%	5.4%
Consumer Defensive	3.4%	7.9%
Communication Services	2.6%	2.3%
Utilities	2.3%	11.9%

Return for Risk

ISCB vs. HSMV — Risk / Return Rank

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

ISCB

ISCB Risk / Return Rank: 56
ISCB Sharpe Ratio Rank: 52
ISCB Sortino Ratio Rank: 53
ISCB Omega Ratio Rank: 49
ISCB Calmar Ratio Rank: 63
ISCB Martin Ratio Rank: 62

HSMV

HSMV Risk / Return Rank: 15
HSMV Sharpe Ratio Rank: 15
HSMV Sortino Ratio Rank: 15
HSMV Omega Ratio Rank: 14
HSMV Calmar Ratio Rank: 16
HSMV Martin Ratio Rank: 17

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. HSMV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Morningstar Small-Cap ETF (ISCB) and First Trust Horizon Managed Volatility Small/Mid ETF (HSMV). 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.

	ISCB	HSMV	Difference
Sharpe ratio: Return per unit of total volatility	1.80	0.41	+1.39
Sortino ratio: Return per unit of downside risk	2.60	0.68	+1.92
Omega ratio: Gain probability vs. loss probability	1.31	1.07	+0.23
Calmar ratio: Return relative to maximum drawdown	3.15	0.54	+2.61
Martin ratio: Return relative to average drawdown	11.26	1.62	+9.63
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ISCB vs. HSMV - Sharpe Ratio Comparison

The current ISCB Sharpe Ratio is 1.80, which is higher than the HSMV Sharpe Ratio of 0.41. The chart below compares the historical Sharpe Ratios of ISCB and HSMV, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ISCB	HSMV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.80	0.41	+1.39
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	0.25	+0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.41	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.38	0.67	-0.30

Drawdowns

ISCB vs. HSMV - Drawdown Comparison

The maximum ISCB drawdown since its inception was -61.25%, which is greater than HSMV's maximum drawdown of -19.16%. Use the drawdown chart below to compare losses from any high point for ISCB and HSMV.

Drawdown Indicators

	ISCB	HSMV	Difference
Max Drawdown Largest peak-to-trough decline	-61.25%	-19.16%	-42.09%
Max Drawdown (1Y) Largest decline over 1 year	-9.39%	-7.83%	-1.56%
Max Drawdown (3Y) Largest decline over 3 years	-26.22%	-15.45%	-10.77%
Max Drawdown (5Y) Largest decline over 5 years	-29.94%	-19.16%	-10.78%
Max Drawdown (10Y) Largest decline over 10 years	-44.18%	—	—
Current Drawdown Current decline from peak	-0.67%	-4.36%	+3.69%
Average Drawdown Average peak-to-trough decline	-9.80%	-5.62%	-4.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.63%	2.59%	+0.04%

Volatility

ISCB vs. HSMV - Volatility Comparison

iShares Morningstar Small-Cap ETF (ISCB) has a higher volatility of 4.28% compared to First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) at 2.85%. This indicates that ISCB's price experiences larger fluctuations and is considered to be riskier than HSMV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ISCB	HSMV	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.28%	2.85%	+1.43%
Volatility (6M) Calculated over the trailing 6-month period	11.43%	7.28%	+4.15%
Volatility (1Y) Calculated over the trailing 1-year period	16.51%	10.37%	+6.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.39%	15.00%	+6.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.68%	16.06%	+6.62%

ISCB vs. HSMV - Expense Ratio Comparison

ISCB has a 0.04% expense ratio, which is lower than HSMV's 0.80% expense ratio.

Dividends

ISCB vs. HSMV - Dividend Comparison

ISCB's dividend yield for the trailing twelve months is around 1.27%, less than HSMV's 2.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HSMV First Trust Horizon Managed Volatility Small/Mid ETF	2.00%	2.01%	1.43%	1.43%	1.26%	0.76%	0.80%	0.00%	0.00%	0.00%	0.00%	0.00%
ISCB iShares Morningstar Small-Cap ETF	1.27%	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 HSMV in my portfolio?

ISCB and HSMV have a correlation of 0.67, 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 HSMV?

ISCB has higher volatility (4.28%) compared to HSMV (2.85%). In terms of maximum drawdown, ISCB dropped -61.25% vs HSMV's -19.16%.

Which ETF is better, ISCB or HSMV?

On 5-year performance, ISCB leads with 5.72% vs 3.69% for HSMV. On fees, ISCB is cheaper at 0.04% per year. On volatility, HSMV has been the lower-risk option at 2.85%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ISCB or HSMV?

Over the 5-year period, ISCB has performed better with a 5.72% return vs 3.69%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ISCB or HSMV?

ISCB is cheaper with a 0.04% expense ratio, compared with 0.80% for HSMV.

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

HSMV has the higher dividend yield at 2.00%, compared with 1.27% for ISCB.

What is the main difference between ISCB and HSMV?

They also come from different issuers: iShares and First Trust. Their fees differ too: 0.04% for ISCB and 0.80% for HSMV.

Which has better risk-adjusted returns?

ISCB currently has the higher Sharpe Ratio (1.80 vs 0.41), 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.