ISCG - ISCG: Nothing Special Among Small-Cap Growth Funds

2024-04-01 02:30:59 ET

Summary

• iShares Morningstar Small-Cap Growth ETF is a "me-too" fund that doesn't differentiate itself much from other small-cap growth ETFs.
• ISCG provides targeted access to small-cap domestic stocks that are projected to grow at an above-average rate compared to the market.
• The fund has a low expense ratio and offers diversification with 1,000 individual holdings, but investing in ISCG carries risks due to its focus on small-cap companies and sensitivity to market fluctuations.

Here's the truth about ETFs: there's one for everything and plenty of "me-too" funds that don't really differentiate by much other than issuer. As an example, there are tons of small-cap growth ETFs out there, and passive ones all largely behave the same with similar holdings are price drivers. The iShares Morningstar Small-Cap Growth ETF ( ISCG ), a fund that specifically targets small-capitalization U.S. equities exhibiting growth characteristics, is one of those "me-too" funds that doesn't really differentiate itself by very much....

For further details see: