ISCB vs. SPSM

Last updated Jun 24, 2026

ISCB (iShares Morningstar Small-Cap ETF) and SPSM (State Street SPDR Portfolio S&P 600 Small Cap ETF) are both Small Cap Blend Equities funds - ISCB tracks the Morningstar US Small Cap Extended Index while SPSM tracks the S&P SmallCap 600 Index. Both are passively managed. Over the past 10 years, ISCB returned 9.82%/yr vs 11.47%/yr for SPSM. Their correlation of 0.94 suggests significant overlap in exposure. ISCB charges 0.04%/yr vs 0.03%/yr for SPSM.

Performance

ISCB vs. SPSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Morningstar Small-Cap ETF (ISCB) and State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ISCB achieves a 13.15% return, which is significantly lower than SPSM's 19.33% return. Over the past 10 years, ISCB has underperformed SPSM with an annualized return of 9.82%, while SPSM has yielded a comparatively higher 11.47% annualized return.

ISCB

• 1D: -0.39%
• 1M: 2.62%
• YTD: 13.15%
• 6M: 11.14%
• 1Y: 29.94%
• 3Y*: 17.02%
• 5Y*: 5.91%
• 10Y*: 9.82%

SPSM

• 1D: -0.34%
• 1M: 4.27%
• YTD: 19.33%
• 6M: 16.91%
• 1Y: 34.61%
• 3Y*: 16.26%
• 5Y*: 6.36%
• 10Y*: 11.47%

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

ISCB vs. SPSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ISCB iShares Morningstar Small-Cap ETF	13.15%	12.46%	10.90%	19.51%	-19.04%	17.46%	6.29%	29.42%	-13.92%	12.95%
SPSM State Street SPDR Portfolio S&P 600 Small Cap ETF	19.33%	6.11%	8.55%	16.11%	-16.12%	26.67%	11.69%	25.85%	-11.17%	15.44%

Correlation

The correlation between ISCB and SPSM is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Jul 9, 2013	0.94

The correlation between ISCB and SPSM has been stable across timeframes, ranging from 0.94 to 0.97 - a consistent structural relationship.

ISCB vs. SPSM - Sectors Allocation Comparison

Sectors	ISCB	SPSM
Industrials	18.5%	15.2%
Technology	16.0%	17.1%
Financial Services	15.6%	16.5%
Healthcare	13.5%	11.0%
Consumer Cyclical	11.4%	13.1%
Real Estate	8.1%	7.6%
Basic Materials	4.6%	5.0%
Energy	4.5%	5.4%
Consumer Defensive	3.2%	3.6%
Communication Services	2.6%	3.7%
Utilities	2.2%	1.9%

Return for Risk

ISCB vs. SPSM — Risk / Return Rank

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

ISCB

ISCB Risk / Return Rank: 60
ISCB Sharpe Ratio Rank: 56
ISCB Sortino Ratio Rank: 58
ISCB Omega Ratio Rank: 52
ISCB Calmar Ratio Rank: 68
ISCB Martin Ratio Rank: 67

SPSM

SPSM Risk / Return Rank: 67
SPSM Sharpe Ratio Rank: 62
SPSM Sortino Ratio Rank: 64
SPSM Omega Ratio Rank: 57
SPSM Calmar Ratio Rank: 79
SPSM Martin Ratio Rank: 74

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. SPSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Morningstar Small-Cap ETF (ISCB) and State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM). 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	SPSM	Difference
Sharpe ratio: Return per unit of total volatility	1.80	1.97	-0.17
Sortino ratio: Return per unit of downside risk	2.59	2.85	-0.26
Omega ratio: Gain probability vs. loss probability	1.31	1.34	-0.03
Calmar ratio: Return relative to maximum drawdown	3.20	3.99	-0.79
Martin ratio: Return relative to average drawdown	11.44	13.45	-2.02

ISCB vs. SPSM - Sharpe Ratio Comparison

The current ISCB Sharpe Ratio is 1.80, which is comparable to the SPSM Sharpe Ratio of 1.97. The chart below compares the historical Sharpe Ratios of ISCB and SPSM, 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. SPSM - Drawdown Comparison

The maximum ISCB drawdown since its inception was -61.25%, which is greater than SPSM's maximum drawdown of -42.89%. Use the drawdown chart below to compare losses from any high point for ISCB and SPSM.

Drawdown Indicators

	ISCB	SPSM	Difference
Max Drawdown Largest peak-to-trough decline	-61.25%	-42.89%	-18.36%
Max Drawdown (1Y) Largest decline over 1 year	-9.39%	-8.72%	-0.67%
Max Drawdown (3Y) Largest decline over 3 years	-26.22%	-27.94%	+1.72%
Max Drawdown (5Y) Largest decline over 5 years	-29.94%	-27.94%	-2.00%
Max Drawdown (10Y) Largest decline over 10 years	-44.18%	-42.89%	-1.29%
Current Drawdown Current decline from peak	-0.71%	-0.41%	-0.30%
Average Drawdown Average peak-to-trough decline	-9.78%	-7.89%	-1.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.62%	2.58%	+0.04%

Volatility

ISCB vs. SPSM - Volatility Comparison

The current volatility for iShares Morningstar Small-Cap ETF (ISCB) is 4.52%, while State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) has a volatility of 4.93%. This indicates that ISCB experiences smaller price fluctuations and is considered to be less risky than SPSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ISCB	SPSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.52%	4.93%	-0.41%
Volatility (6M) Calculated over the trailing 6-month period	11.72%	12.04%	-0.32%
Volatility (1Y) Calculated over the trailing 1-year period	16.73%	17.65%	-0.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.41%	21.42%	-0.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.67%	22.99%	-0.32%

ISCB vs. SPSM - Expense Ratio Comparison

ISCB has a 0.04% expense ratio, which is higher than SPSM's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

ISCB vs. SPSM - Dividend Comparison

ISCB's dividend yield for the trailing twelve months is around 1.30%, less than SPSM's 1.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ISCB iShares Morningstar Small-Cap ETF	1.30%	1.38%	1.31%	1.49%	1.63%	1.26%	1.26%	1.25%	1.60%	1.24%	1.58%	1.40%
SPSM State Street SPDR Portfolio S&P 600 Small Cap ETF	1.41%	1.62%	1.85%	1.61%	1.38%	1.40%	1.34%	1.58%	1.82%	1.51%	1.49%	2.37%

Frequently Asked Questions

Can I hold both ISCB and SPSM in my portfolio?

With a correlation of 0.96, ISCB and SPSM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, ISCB or SPSM?

SPSM has higher volatility (4.93%) compared to ISCB (4.52%). In terms of maximum drawdown, ISCB dropped -61.25% vs SPSM's -42.89%.

Which ETF is better, ISCB or SPSM?

On 10-year performance, SPSM leads with 11.47% vs 9.82% for ISCB. On fees, SPSM is cheaper at 0.03% per year. On volatility, ISCB has been the lower-risk option at 4.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ISCB or SPSM?

Over the 10-year period, SPSM has performed better with a 11.47% return vs 9.82%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ISCB or SPSM?

SPSM is cheaper with a 0.03% expense ratio, compared with 0.04% for ISCB.

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

SPSM has the higher dividend yield at 1.41%, compared with 1.30% for ISCB.

What is the main difference between ISCB and SPSM?

ISCB tracks Morningstar US Small Cap Extended Index, while SPSM tracks S&P SmallCap 600 Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.04% for ISCB and 0.03% for SPSM.

Which has better risk-adjusted returns?

SPSM currently has the higher Sharpe Ratio (1.97 vs 1.80), 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.