Key Points
iShares Morningstar Small-Cap Value ETF provides a significantly lower expense ratio than iShares S&P Mid-Cap 400 Value ETF.
iShares S&P Mid-Cap 400 Value ETF manages a much larger amount of assets under management (AUM) and focuses on mid-sized firms rather than small-cap stocks.
iShares Morningstar Small-Cap Value ETF has delivered higher total returns over the trailing 12 months but shows a deeper maximum drawdown over a five-year period.
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Investors choosing between iShares Morningstar Small-Cap Value ETF (NYSEMKT:ISCV) and iShares S&P Mid-Cap 400 Value ETF (NYSEMKT:IJJ) are primarily weighing the higher potential of small-cap stocks against the relative stability of mid-caps.
Both funds target domestic value stocks but focus on different size tiers within the market. While ISCV leans into smaller companies that may offer more room for growth, IJJ targets mid-sized firms that often provide a middle ground between small-cap volatility and large-cap maturity.
Snapshot (cost & size)
| Metric | ISCV | IJJ |
|---|---|---|
| Issuer | iShares | iShares |
| Expense ratio | 0.06% | 0.18% |
| 1-yr return (as of April 27, 2026) | 34.10% | 26.50% |
| Dividend yield | 1.90% | 1.70% |
| Beta | 1.03 | 1.01 |
| AUM | $644.8 million | $8.5 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The iShares Morningstar Small-Cap Value ETF is more affordable with a 0.06% expense ratio, whereas the iShares S&P Mid-Cap 400 Value ETF charges 0.18%. Additionally, the small-cap fund offers a distribution yield of 1.90%, slightly higher than the 1.70% yield for the mid-cap ETF.
Performance & risk comparison
| Metric | ISCV | IJJ |
|---|---|---|
| Max drawdown (5 yr) | (25.30%) | (22.70%) |
| Growth of $1,000 over 5 years (total return) | $1,403 | $1,444 |
What's inside
The iShares S&P Mid-Cap 400 Value ETF (NYSEMKT:IJJ) focuses on mid-sized companies, holding 308 stocks. Its largest positions include US Foods (NYSE:USFD) at 1.23%, Reliance Steel & Aluminum (NYSE:RS) at 1.10%, and Alcoa (NYSE:AA) at 1.02%. The portfolio is weighted toward financial services at 22.00%, industrials at 18.00%, and consumer cyclical at 14.00%. Launched in 2000, it has a trailing-12-month dividend of $2.34 per share.
In contrast, the iShares Morningstar Small-Cap Value ETF (NYSEMKT:ISCV) targets 1,077 smaller companies. Its top holdings include CF Industries (NYSE:CF) at 0.62%, TD SYNNEX (NYSE:SNX) at 0.57%, and Moderna (NASDAQ:MRNA) at 0.57%. This fund launched in 2004 and holds a portfolio concentrated in financial services at 21.00%, consumer cyclical at 14.00%, and industrials at 12.00%. It has a trailing-12-month dividend of $1.41 per share.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Value investing -- seeking stocks that trade below their intrinsic worth -- works across the market cap spectrum, but the experience of owning it differs meaningfully by company size.
Small-cap value stocks like those in ISCV tend to be more volatile, more sensitive to economic shifts, and harder hit in downturns, but they also carry more room to grow when conditions turn favorable. Mid-cap value stocks like those in IJJ occupy a steadier middle ground. These are companies that have generally survived their most vulnerable early stages and still trade at a discount to fair value.
Both funds apply value screens to their respective universes, but ISCV spreads exposure across more than 1,000 small-cap names while IJJ concentrates in roughly 300 mid-sized companies. ISCV also charges significantly less than IJJ, a gap that compounds in favor of long-term holders.
The right choice depends on where investors want to sit on the risk spectrum. ISCV offers deeper value exposure with more volatility and lower cost. IJJ provides a smoother ride in a more established tier of the market, at a higher fee.
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Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Moderna. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
