ISCV vs. IJJ: Which Value ETF Is the Better Buy Today?

Both the iShares Morningstar Small Cap Value ETF (ISCV +0.32%) and the iShares S&P Mid-Cap 400 Value ETF (IJJ +0.49%) take a value approach to investing in U.S. equities -- they just do it with different-sized companies.

ISCV tracks small-cap companies that appear undervalued, while IJJ focuses on mid-sized firms with similar characteristics.

Snapshot (cost & size)

| Metric | ISCV | IJJ | | --- | --- | --- | | Issuer | iShares | iShares | | Expense ratio | 0.06% | 0.18% | | 1-year return (as of July 9, 2026) | 24.41% | 16.24% | | Dividend yield | 1.85% | 1.59% | | Beta | 1.02 | 0.96 | | AUM | $685.2 million | $8.7 billion |

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

ISCV is the cheaper option, with an expense ratio of 0.06% compared to 0.18% for IJJ. ISCV also pays out more to shareholders, with a 1.85% dividend yield compared to IJJ’s 1.59%.

Performance & risk comparison

| Metric | ISCV | IJJ | | --- | --- | --- | | Max drawdown (5 yr) | (25.34%) | (22.67%) | | Growth of $1,000 over 5 years (total return) | $1,500 | $1,521 |

What's inside

Launched in 2000, IJJ provides targeted exposure to 304 mid-sized companies with undervalued characteristics. Its portfolio tilts toward financial services at 21.8%, industrials at 19.1%, and consumer cyclicals at 14.0%. Its largest positions include US Foods (USFD +1.51%) at 1.3%, TD Synnex (SNX +0.54%) at 1.2%, and Reliance (RS +0.72%) at 1.1%.

ISCV holds a much broader portfolio of 1,051 stocks. Its biggest sector weights include financial services at 22.4%, consumer cyclicals at 14.6%, and industrials at 12.7%. Its top holdings are Host Hotels & Resorts (HST +0.09%) at 0.5%, Jazz Pharmaceuticals (JAZZ 1.25%) at 0.5%, and Aramark (ARMK +0.00%) at 0.5%. ISCV was launched in 2004.

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What this means for investors

Deciding between these two ETFs really comes down to which slice of the market an investor wants more exposure to -- small-cap or mid-cap.

ISCV's 1,000+ holdings spread risk across a huge swath of small, undervalued companies, and at a 0.06% expense ratio, it's about as cheap as targeted value exposure gets. That combination of low cost and broad diversification is notable: small-cap funds don't always come this inexpensive, and the extra yield (compared to IJJ) is a nice bonus for income-focused investors.

IJJ presents a similar case, but with a little more stability given its mid-cap focus. Mid-cap companies tend to hold up slightly better during volatile periods, which might appeal to investors who don't want the wider swings that typically come with small-cap stocks.

Small-cap value has had a strong run over the past year, and ISCV's outperformance during that stretch is a reminder that smaller companies can help juice returns when conditions favor risk-taking. But on a five-year basis, both funds have performed similarly -- and that’s the more important takeaway for long-term investors. Chasing the better recent return can be tempting, but cost and consistency often matter more than a single strong year.

For investors building a diversified portfolio, there's also a reasonable case for owning both of these funds -- especially for those that might be overweighted toward large caps.