VTWG vs. ISCG

Last updated Jun 4, 2026

VTWG (Vanguard Russell 2000 Growth ETF) and ISCG (iShares Morningstar Small-Cap Growth ETF) are both Small Cap Growth Equities funds - VTWG 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, VTWG returned 11.33%/yr vs 11.37%/yr for ISCG. Their correlation of 0.94 suggests significant overlap in exposure. VTWG charges 0.15%/yr vs 0.06%/yr for ISCG.

Performance

VTWG vs. ISCG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Russell 2000 Growth ETF (VTWG) 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, VTWG achieves a 16.90% return, which is significantly higher than ISCG's 12.92% return. Both investments have delivered pretty close results over the past 10 years, with VTWG having a 11.33% annualized return and ISCG not far ahead at 11.37%.

VTWG

• 1D: -1.35%
• 1M: 4.49%
• YTD: 16.90%
• 6M: 15.29%
• 1Y: 37.62%
• 3Y*: 18.23%
• 5Y*: 5.70%
• 10Y*: 11.33%

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)

VTWG vs. ISCG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTWG Vanguard Russell 2000 Growth ETF	16.90%	13.07%	15.15%	18.90%	-26.49%	2.84%	34.72%	28.75%	-9.45%	22.27%
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 VTWG 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 Sep 23, 2010	0.94

The correlation between VTWG and ISCG has been stable across timeframes, ranging from 0.94 to 0.98 - a consistent structural relationship.

VTWG vs. ISCG - Sectors Allocation Comparison

Sectors	VTWG	ISCG
Technology	23.5%	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

VTWG vs. ISCG — Risk / Return Rank

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

VTWG

VTWG Risk / Return Rank: 49
VTWG Sharpe Ratio Rank: 50
VTWG Sortino Ratio Rank: 49
VTWG Omega Ratio Rank: 45
VTWG Calmar Ratio Rank: 50
VTWG Martin Ratio Rank: 53

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.

VTWG vs. ISCG - Risk-Adjusted Trends Comparison

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

	VTWG	ISCG	Difference
Sharpe ratio: Return per unit of total volatility	1.76	1.70	+0.06
Sortino ratio: Return per unit of downside risk	2.44	2.40	+0.04
Omega ratio: Gain probability vs. loss probability	1.29	1.29	0.00
Calmar ratio: Return relative to maximum drawdown	2.54	2.69	-0.15
Martin ratio: Return relative to average drawdown	9.16	10.31	-1.14
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTWG vs. ISCG - Sharpe Ratio Comparison

The current VTWG Sharpe Ratio is 1.76, which is comparable to the ISCG Sharpe Ratio of 1.70. The chart below compares the historical Sharpe Ratios of VTWG 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

	VTWG	ISCG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.76	1.70	+0.06
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	-0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.52	0.41	+0.11

Drawdowns

VTWG vs. ISCG - Drawdown Comparison

The maximum VTWG drawdown since its inception was -42.07%, smaller than the maximum ISCG drawdown of -57.72%. Use the drawdown chart below to compare losses from any high point for VTWG and ISCG.

Drawdown Indicators

	VTWG	ISCG	Difference
Max Drawdown Largest peak-to-trough decline	-42.07%	-57.72%	+15.65%
Max Drawdown (1Y) Largest decline over 1 year	-14.88%	-11.43%	-3.45%
Max Drawdown (3Y) Largest decline over 3 years	-28.58%	-26.71%	-1.87%
Max Drawdown (5Y) Largest decline over 5 years	-40.49%	-37.80%	-2.69%
Max Drawdown (10Y) Largest decline over 10 years	-42.07%	-41.48%	-0.59%
Current Drawdown Current decline from peak	-1.39%	-0.93%	-0.46%
Average Drawdown Average peak-to-trough decline	-10.53%	-11.63%	+1.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.12%	2.98%	+1.14%

Volatility

VTWG vs. ISCG - Volatility Comparison

Vanguard Russell 2000 Growth ETF (VTWG) has a higher volatility of 6.62% compared to iShares Morningstar Small-Cap Growth ETF (ISCG) at 4.93%. This indicates that VTWG'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

	VTWG	ISCG	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.62%	4.93%	+1.69%
Volatility (6M) Calculated over the trailing 6-month period	15.90%	13.09%	+2.81%
Volatility (1Y) Calculated over the trailing 1-year period	21.50%	18.13%	+3.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.52%	22.95%	+1.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.21%	23.16%	+1.05%

VTWG vs. ISCG - Expense Ratio Comparison

VTWG has a 0.15% 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

VTWG vs. ISCG - Dividend Comparison

VTWG's dividend yield for the trailing twelve months is around 0.59%, more 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%
VTWG Vanguard Russell 2000 Growth ETF	0.59%	0.64%	0.55%	0.79%	0.71%	0.54%	0.48%	0.72%	0.72%	0.64%	0.96%	0.72%

Frequently Asked Questions

Can I hold both VTWG and ISCG in my portfolio?

With a correlation of 0.97, VTWG 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, VTWG or ISCG?

VTWG has higher volatility (6.62%) compared to ISCG (4.93%). In terms of maximum drawdown, VTWG dropped -42.07% vs ISCG's -57.72%.

Which ETF is better, VTWG or ISCG?

On 10-year performance, ISCG leads with 11.37% vs 11.33% for VTWG. 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, VTWG or ISCG?

Over the 10-year period, ISCG has performed better with a 11.37% return vs 11.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTWG or ISCG?

ISCG is cheaper with a 0.06% expense ratio, compared with 0.15% for VTWG.

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

VTWG has the higher dividend yield at 0.59%, compared with 0.56% for ISCG.

What is the main difference between VTWG and ISCG?

VTWG tracks Russell 2000 Growth Index, while ISCG tracks Morningstar US Small Cap Broad Growth Extended Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.15% for VTWG and 0.06% for ISCG.

Which has better risk-adjusted returns?

VTWG currently has the higher Sharpe Ratio (1.76 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.