Data as of January 9, 2026, shows the iShares Morningstar Small-Cap ETF (ISCB) posted a one-year return of 17.46%, outperforming the State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM), which returned 11.2% over the same period.
ISCB carries an expense ratio of 0.04%, slightly higher than SPSM's 0.03%. SPSM also offers a dividend yield of 1.62%, compared to ISCB's 1.38%.
The iShares fund holds 1,578 U.S. small-cap stocks, more than twice the 607 stocks held by the SPDR fund. ISCB's largest sector weights are in industrials at 19%, financial services at 17%, and healthcare at 13.9%. Its top holdings include Lumentum Holdings (NASDAQ:LITE), Albemarle Corp (NYSE:ALB), and Kratos Defense and Security Solutions (NASDAQ:KTOS), each accounting for less than half a percent of assets.
SPSM's portfolio shows a sector tilt toward financial services at 18%, followed by industrials at 16% and technology at 15%. Its top positions are Arrowhead Pharmaceuticals (NASDAQ:ARWR), Sanmina Corp. (NASDAQ:SANM), and Advanced Energy Industries (NASDAQ:AEIS).
In terms of assets under management, SPSM holds $13.08 billion, significantly more than ISCB's $253.45 million. Over a five-year period, ISCB showed a maximum drawdown of 32.26%, slightly better than SPSM's 34.83% drawdown. A $1,000 investment in ISCB would have grown to $1,323 over five years, compared to $1,290 for SPSM.
Both ETFs aim to provide investors access to U.S. small-cap stocks. The iShares fund is noted for its broader portfolio and recent performance, while the State Street fund offers lower costs, larger assets under management, and greater liquidity.