ETF Evaluator: iShares Morningstar Small-Cap Growth ETF (ISCG) Follow This ETF

iShares Morningstar Small-Cap Growth ETF Overview

iShares Morningstar Small-Cap Growth ETF (ISCG) is a passively managed U.S. Equity Small Growth exchange-traded fund (ETF). iShares launched the ETF in 2004.

The investment seeks to track the investment results of the Morningstar® U.S. Small Cap Broad Growth Extended IndexSM composed of small-capitalization U.S. equities that exhibit growth characteristics. The fund will invest at least 80% of its assets in the component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the component securities of its underlying index. The index measures the performance of U.S. stocks issued by small-capitalization companies that have exhibited above-average “growth” characteristics as determined by Morningstar, Inc.’s proprietary index methodology.

About iShares Morningstar Small-Cap Growth ETF (ISCG)

There are 4 members of the management team with an average tenure of 4.40 years: Jennifer Hsui (2012), Peter Sietsema (2025), Matt Waldron (2025) and Steven White (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Morningstar US Market TR USD index with a weighting of 100% and Morningstar US Small Brd Grt Ext TR USD index with a weighting of 100%. iShares Morningstar Small-Cap Growth ETF has 938 securities in its portfolio. The top 10 holdings constitute 5.8% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

iShares Morningstar Small-Cap Growth ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. iShares Morningstar Small-Cap Growth ETF has 0.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.1% There is 0.6% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). iShares Morningstar Small-Cap Growth ETF has 0.3% of the portfolio in cash.

Assets Under Management

The fund has $1 billion in total assets, which is below the $2 billion average for the Small Growth category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

ISCG Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The iShares Morningstar Small-Cap Growth ETF expense ratio is low compared to funds in the Small Growth category. iShares Morningstar Small-Cap Growth ETF has an expense ratio of 0.06%, which is 86% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. iShares Morningstar Small-Cap Growth ETF has a portfolio turnover rate of 42%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 75% for the Small Growth category.

Recently, in the month of June 2026, iShares Morningstar Small-Cap Growth ETF returned 4.7%, which earned it a grade of D, as the Small Growth category had an average return of 6.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

iShares Morningstar Small-Cap Growth ETF has a trailing yield of 0.57%, which is above the 0.40% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

iShares Morningstar Small-Cap Growth ETF Grades

Year to date, the ETF has returned 18.3%, 5.3 percentage points worse than the category, which translates into a grade of F. The fund has returned 32.6% over the past year (grade of D), 17.3% over the past three years (grade of C) and 5.6% per year over the past five years (grade of D) and 12.0% per year over the past 10 years (grade of B).

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