ISCV vs. VBR

Last updated Jun 4, 2026

ISCV (iShares Morningstar Small Cap Value ETF) and VBR (Vanguard Small-Cap Value ETF) are both Small Cap Value Equities funds - ISCV tracks the Morningstar US Small Cap Broad Value Extended Index while VBR tracks the CRSP US Small Cap Value Index. Both are passively managed. Over the past 10 years, ISCV returned 8.58%/yr vs 10.53%/yr for VBR. With a 0.97 correlation, they move nearly in lockstep. ISCV charges 0.06%/yr vs 0.05%/yr for VBR.

Performance

ISCV vs. VBR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Morningstar Small Cap Value ETF (ISCV) and Vanguard Small-Cap Value ETF (VBR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ISCV achieves a 10.08% return, which is significantly lower than VBR's 11.67% return. Over the past 10 years, ISCV has underperformed VBR with an annualized return of 8.58%, while VBR has yielded a comparatively higher 10.53% annualized return.

ISCV

• 1D: -0.57%
• 1M: 2.04%
• YTD: 10.08%
• 6M: 10.27%
• 1Y: 27.98%
• 3Y*: 15.48%
• 5Y*: 6.54%
• 10Y*: 8.58%

VBR

• 1D: -0.39%
• 1M: 2.39%
• YTD: 11.67%
• 6M: 11.95%
• 1Y: 25.78%
• 3Y*: 16.44%
• 5Y*: 7.95%
• 10Y*: 10.53%

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

ISCV vs. VBR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ISCV iShares Morningstar Small Cap Value ETF	10.08%	10.38%	9.31%	16.55%	-10.58%	29.15%	0.86%	19.51%	-17.39%	8.59%
VBR Vanguard Small-Cap Value ETF	11.67%	9.09%	12.40%	16.00%	-9.38%	28.08%	5.90%	22.78%	-12.28%	11.81%

Correlation

The correlation between ISCV and VBR is 0.98 - 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	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since Jul 14, 2004	0.97

The correlation between ISCV and VBR has been stable across timeframes, ranging from 0.97 to 0.99 - a consistent structural relationship.

ISCV vs. VBR - Sectors Allocation Comparison

Sectors	ISCV	VBR
Financial Services	21.1%	17.6%
Consumer Cyclical	13.4%	12.4%
Industrials	12.1%	18.1%
Healthcare	11.1%	7.9%
Real Estate	11.0%	10.1%
Technology	8.9%	10.6%
Energy	7.2%	5.2%
Basic Materials	5.8%	6.3%
Consumer Defensive	3.7%	4.0%
Utilities	3.6%	4.8%
Communication Services	1.8%	2.5%

Return for Risk

ISCV vs. VBR — Risk / Return Rank

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

ISCV

ISCV Risk / Return Rank: 54
ISCV Sharpe Ratio Rank: 49
ISCV Sortino Ratio Rank: 53
ISCV Omega Ratio Rank: 47
ISCV Calmar Ratio Rank: 61
ISCV Martin Ratio Rank: 59

VBR

VBR Risk / Return Rank: 52
VBR Sharpe Ratio Rank: 49
VBR Sortino Ratio Rank: 50
VBR Omega Ratio Rank: 46
VBR Calmar Ratio Rank: 58
VBR Martin Ratio Rank: 58

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.

ISCV vs. VBR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Morningstar Small Cap Value ETF (ISCV) and Vanguard Small-Cap Value ETF (VBR). 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.

	ISCV	VBR	Difference
Sharpe ratio: Return per unit of total volatility	1.73	1.71	+0.02
Sortino ratio: Return per unit of downside risk	2.58	2.52	+0.06
Omega ratio: Gain probability vs. loss probability	1.30	1.30	0.00
Calmar ratio: Return relative to maximum drawdown	3.04	2.93	+0.11
Martin ratio: Return relative to average drawdown	10.55	10.32	+0.23
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ISCV vs. VBR - Sharpe Ratio Comparison

The current ISCV Sharpe Ratio is 1.73, which is comparable to the VBR Sharpe Ratio of 1.71. The chart below compares the historical Sharpe Ratios of ISCV and VBR, 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

	ISCV	VBR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.73	1.71	+0.02
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.32	0.40	-0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.37	0.49	-0.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.36	0.42	-0.05

Drawdowns

ISCV vs. VBR - Drawdown Comparison

The maximum ISCV drawdown since its inception was -63.14%, roughly equal to the maximum VBR drawdown of -61.98%. Use the drawdown chart below to compare losses from any high point for ISCV and VBR.

Drawdown Indicators

	ISCV	VBR	Difference
Max Drawdown Largest peak-to-trough decline	-63.14%	-61.98%	-1.16%
Max Drawdown (1Y) Largest decline over 1 year	-9.25%	-8.85%	-0.40%
Max Drawdown (3Y) Largest decline over 3 years	-25.35%	-24.19%	-1.16%
Max Drawdown (5Y) Largest decline over 5 years	-25.35%	-24.19%	-1.16%
Max Drawdown (10Y) Largest decline over 10 years	-51.56%	-45.28%	-6.28%
Current Drawdown Current decline from peak	-0.68%	-0.39%	-0.29%
Average Drawdown Average peak-to-trough decline	-9.14%	-8.27%	-0.87%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.66%	2.50%	+0.16%

Volatility

ISCV vs. VBR - Volatility Comparison

iShares Morningstar Small Cap Value ETF (ISCV) and Vanguard Small-Cap Value ETF (VBR) have volatilities of 3.80% and 3.96%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ISCV	VBR	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.80%	3.96%	-0.16%
Volatility (6M) Calculated over the trailing 6-month period	10.45%	10.46%	-0.01%
Volatility (1Y) Calculated over the trailing 1-year period	16.28%	15.17%	+1.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.83%	19.77%	+1.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.30%	21.73%	+1.57%

ISCV vs. VBR - Expense Ratio Comparison

ISCV has a 0.06% expense ratio, which is higher than VBR's 0.05% 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

ISCV vs. VBR - Dividend Comparison

ISCV's dividend yield for the trailing twelve months is around 1.88%, more than VBR's 1.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ISCV iShares Morningstar Small Cap Value ETF	1.88%	2.04%	2.01%	2.21%	2.12%	1.95%	2.01%	2.36%	2.48%	1.74%	2.49%	2.60%
VBR Vanguard Small-Cap Value ETF	1.76%	1.95%	1.98%	2.12%	2.03%	1.75%	1.68%	2.06%	2.35%	1.79%	1.77%	1.99%

Frequently Asked Questions

Can I hold both ISCV and VBR in my portfolio?

With a correlation of 0.98, ISCV and VBR 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, ISCV or VBR?

VBR has higher volatility (3.96%) compared to ISCV (3.80%). In terms of maximum drawdown, ISCV dropped -63.14% vs VBR's -61.98%.

Which ETF is better, ISCV or VBR?

On 10-year performance, VBR leads with 10.53% vs 8.58% for ISCV. On fees, VBR is cheaper at 0.05% per year. On volatility, ISCV has been the lower-risk option at 3.80%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ISCV or VBR?

Over the 10-year period, VBR has performed better with a 10.53% return vs 8.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ISCV or VBR?

VBR is cheaper with a 0.05% expense ratio, compared with 0.06% for ISCV.

Which ETF pays a higher dividend yield, ISCV or VBR?

ISCV has the higher dividend yield at 1.88%, compared with 1.76% for VBR.

What is the main difference between ISCV and VBR?

ISCV tracks Morningstar US Small Cap Broad Value Extended Index, while VBR tracks CRSP US Small Cap Value Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.06% for ISCV and 0.05% for VBR.

Which has better risk-adjusted returns?

ISCV currently has the higher Sharpe Ratio (1.73 vs 1.71), 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.