IWO vs. ISCG

Last updated Jun 4, 2026

IWO (iShares Russell 2000 Growth ETF) and ISCG (iShares Morningstar Small-Cap Growth ETF) are both Small Cap Growth Equities funds from iShares - IWO tracks the Russell 2000 Growth Index while ISCG tracks the Morningstar US Small Cap Broad Growth Extended Index. Both are passively managed. Over the past 10 years, IWO returned 11.23%/yr vs 11.37%/yr for ISCG. Their correlation of 0.95 suggests significant overlap in exposure. IWO charges 0.24%/yr vs 0.06%/yr for ISCG.

Performance

IWO vs. ISCG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Russell 2000 Growth ETF (IWO) 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, IWO achieves a 16.75% return, which is significantly higher than ISCG's 12.92% return. Both investments have delivered pretty close results over the past 10 years, with IWO having a 11.23% annualized return and ISCG not far ahead at 11.37%.

IWO

• 1D: -1.41%
• 1M: 4.28%
• YTD: 16.75%
• 6M: 15.06%
• 1Y: 37.09%
• 3Y*: 18.01%
• 5Y*: 5.56%
• 10Y*: 11.23%

ISCG

• 1D: -0.93%
• 1M: 3.29%
• YTD: 12.92%
• 6M: 12.57%
• 1Y: 30.64%
• 3Y*: 17.01%
• 5Y*: 5.31%
• 10Y*: 11.37%

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

IWO vs. ISCG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IWO iShares Russell 2000 Growth ETF	16.75%	12.90%	15.04%	18.51%	-26.27%	2.54%	34.68%	28.48%	-9.43%	22.25%
ISCG iShares Morningstar Small-Cap Growth ETF	12.92%	12.88%	13.35%	23.13%	-26.75%	-1.26%	43.41%	27.66%	-6.91%	24.68%

Correlation

The correlation between IWO and ISCG is 0.97 - 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	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Jul 8, 2004	0.95

The correlation between IWO and ISCG has been stable across timeframes, ranging from 0.95 to 0.98 - a consistent structural relationship.

IWO vs. ISCG - Sectors Allocation Comparison

Sectors	IWO	ISCG
Technology	23.6%	21.4%
Industrials	23.1%	24.6%
Healthcare	22.4%	15.4%
Financial Services	8.2%	10.6%
Consumer Cyclical	7.7%	9.9%
Basic Materials	4.2%	3.5%
Energy	3.5%	2.8%
Consumer Defensive	2.6%	2.9%
Communication Services	2.2%	2.8%
Real Estate	2.1%	5.2%
Utilities	0.7%	1.0%

Return for Risk

IWO vs. ISCG — Risk / Return Rank

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

IWO

IWO Risk / Return Rank: 49
IWO Sharpe Ratio Rank: 50
IWO Sortino Ratio Rank: 49
IWO Omega Ratio Rank: 45
IWO Calmar Ratio Rank: 50
IWO Martin Ratio Rank: 52

ISCG

ISCG Risk / Return Rank: 50
ISCG Sharpe Ratio Rank: 48
ISCG Sortino Ratio Rank: 48
ISCG Omega Ratio Rank: 44
ISCG Calmar Ratio Rank: 53
ISCG 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.

IWO vs. ISCG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 Growth ETF (IWO) 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.

	IWO	ISCG	Difference
Sharpe ratio: Return per unit of total volatility	1.75	1.70	+0.05
Sortino ratio: Return per unit of downside risk	2.42	2.40	+0.02
Omega ratio: Gain probability vs. loss probability	1.29	1.29	0.00
Calmar ratio: Return relative to maximum drawdown	2.51	2.69	-0.19
Martin ratio: Return relative to average drawdown	8.99	10.31	-1.31
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IWO vs. ISCG - Sharpe Ratio Comparison

The current IWO Sharpe Ratio is 1.75, which is comparable to the ISCG Sharpe Ratio of 1.70. The chart below compares the historical Sharpe Ratios of IWO 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.

Sharpe Ratios by Period

	IWO	ISCG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.75	1.70	+0.05
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.23	0.23	0.00
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	0.49	-0.03
Sharpe Ratio (All Time) Calculated using the full available price history	0.28	0.41	-0.13

Drawdowns

IWO vs. ISCG - Drawdown Comparison

The maximum IWO drawdown since its inception was -60.11%, roughly equal to the maximum ISCG drawdown of -57.72%. Use the drawdown chart below to compare losses from any high point for IWO and ISCG.

Drawdown Indicators

	IWO	ISCG	Difference
Max Drawdown Largest peak-to-trough decline	-60.11%	-57.72%	-2.39%
Max Drawdown (1Y) Largest decline over 1 year	-14.87%	-11.43%	-3.44%
Max Drawdown (3Y) Largest decline over 3 years	-28.57%	-26.71%	-1.86%
Max Drawdown (5Y) Largest decline over 5 years	-40.51%	-37.80%	-2.71%
Max Drawdown (10Y) Largest decline over 10 years	-42.02%	-41.48%	-0.54%
Current Drawdown Current decline from peak	-1.51%	-0.93%	-0.58%
Average Drawdown Average peak-to-trough decline	-16.71%	-11.63%	-5.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.14%	2.98%	+1.16%

Volatility

IWO vs. ISCG - Volatility Comparison

iShares Russell 2000 Growth ETF (IWO) has a higher volatility of 6.61% compared to iShares Morningstar Small-Cap Growth ETF (ISCG) at 4.93%. This indicates that IWO's price experiences larger fluctuations and is considered to be riskier than ISCG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IWO	ISCG	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.61%	4.93%	+1.68%
Volatility (6M) Calculated over the trailing 6-month period	15.65%	13.09%	+2.56%
Volatility (1Y) Calculated over the trailing 1-year period	21.34%	18.13%	+3.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.48%	22.95%	+1.53%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.13%	23.16%	+0.97%

IWO vs. ISCG - Expense Ratio Comparison

IWO has a 0.24% expense ratio, which is higher than ISCG's 0.06% 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

IWO vs. ISCG - Dividend Comparison

IWO's dividend yield for the trailing twelve months is around 0.40%, less than ISCG's 0.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ISCG iShares Morningstar Small-Cap Growth ETF	0.56%	0.61%	0.84%	0.77%	0.92%	0.62%	0.10%	0.27%	0.40%	0.52%	1.19%	0.64%
IWO iShares Russell 2000 Growth ETF	0.40%	0.56%	0.80%	0.73%	0.73%	0.32%	0.44%	0.71%	0.76%	0.73%	0.97%	0.89%

Frequently Asked Questions

Can I hold both IWO and ISCG in my portfolio?

With a correlation of 0.97, IWO and ISCG 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, IWO or ISCG?

IWO has higher volatility (6.61%) compared to ISCG (4.93%). In terms of maximum drawdown, IWO dropped -60.11% vs ISCG's -57.72%.

Which ETF is better, IWO or ISCG?

On 10-year performance, ISCG leads with 11.37% vs 11.23% for IWO. On fees, ISCG is cheaper at 0.06% per year. On volatility, ISCG has been the lower-risk option at 4.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IWO or ISCG?

Over the 10-year period, ISCG has performed better with a 11.37% return vs 11.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IWO or ISCG?

ISCG is cheaper with a 0.06% expense ratio, compared with 0.24% for IWO.

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

ISCG has the higher dividend yield at 0.56%, compared with 0.40% for IWO.

What is the main difference between IWO and ISCG?

IWO tracks Russell 2000 Growth Index, while ISCG tracks Morningstar US Small Cap Broad Growth Extended Index. Their fees differ too: 0.24% for IWO and 0.06% for ISCG.

Which has better risk-adjusted returns?

IWO currently has the higher Sharpe Ratio (1.75 vs 1.70), 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.