At a glance
ISCB charges 0.04% a year, below the 0.1% average of the 7 funds most like it (the cheapest of 8). It has $212.3M in assets, the 8th largest of that group; it paid 1.35% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +12.0% with distributions reinvested (S&P 500: +11.5%), 7th of those 8 funds; over three years it returned +20.3% a year. At its worst it fell 25.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 18 months after the low.
The short version
iShares Morningstar Small-Cap ETF (ISCB), from BlackRock's iShares line, is an index fund that tracks a Morningstar index of smaller-company stocks. Its main draw is cost. Its expense ratio of 0.04% ties for the lowest among the similar funds compared here, where the average is 0.10%. Its main drawback is size. With about $212 million in assets, it is far smaller than rivals such as Vanguard Small Cap ETF (VB).
Price history
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ISCB +12.0% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| ISCB price data to Oct 27, 2026 | +11.9% | +12.0% | +20.3% | +6.2% | — | +6.0% |
- Over the year to Oct 27, 2026, ISCB returned +12.0%, 7th of 8 among similar funds.
- Its 5-year annualized return was +6.2%.
- Its worst full calendar year was 2022 (-19.0%); its best was 2023 (+19.6%).
- The deepest fall in its price history was 29.9% (Nov 8, 2021 to Sep 26, 2022), recovered by Oct 14, 2024.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +11.9% |
| 2025 | +12.5% |
| 2024 | +10.9% |
| 2023 | +19.6% |
| 2022 | -19.0% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Not in the price data, which starts Mar 26, 2021 |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Mar 26, 2021 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 24.2% over that stretch · deepest drop along the way 25.8%, back to its old high 18 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.6500 | |
| 2025 | $0.9000 | +18.4% |
| 2024 | $0.7600 | -6.2% |
| 2023 | $0.8100 | +8.0% |
| 2022 | $0.7500 |
How it works
ISCB is an index fund, also called a passive fund. No manager picks stocks. Instead, the fund aims to match a small-cap stock index built by Morningstar, as its name shows. "Small-cap" means companies with a smaller total stock market value (share price times shares outstanding) than the giants that dominate large-company funds. Morningstar's rules decide which companies qualify, and the fund holds those stocks in roughly the index's proportions.
The fund's prospectus and iShares' fund page set out the details. They cover the exact size cut-offs, how much weight each stock gets, how often the index is rebalanced (reset to its target makeup), and the largest holdings. These details weren't available for this review, so readers who want them should check those documents directly.
Mechanically, ISCB is a plain stock fund. It does not use leverage, options strategies or buffers. Its return should roughly follow its index, minus its small yearly fee. Dividends from the stocks it owns are paid out quarterly. Like any ETF, it trades on an exchange all day at a market price, which can differ slightly from the value of its holdings. The fund launched on June 28, 2004.
What it really costs
- ISCB charges 0.04% a year, versus an average of 0.1% for the similar funds below (1st of 8, cheapest first).
In a retirement portfolio
Small-company stocks have swung more than the broad market, and ISCB's deepest drop took about two years to recover, so it fits better as a smaller slice next to a core holding than as the core itself.
ISCB could add smaller companies to a portfolio built around large-company funds, at a cost of 0.04% a year. Its price history starts March 26, 2021, so it can't show how the fund did in 2008 or the 2020 COVID crash. In the 2022 bear market, it fell 25.8% between January 4 and September 26, 2022, and took 18 months to recover. Its deepest drop was 29.9%, starting November 8, 2021, and it didn't regain that level until October 14, 2024, about 25 months later. Its worst calendar year was 2022, at -19.0%. A retiree who sold shares for spending money during that stretch would have locked in losses. Income is modest. The yield was 1.35% as of October 27, 2026, paid quarterly. Past results don't predict future ones, and a retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Cost-focused investors who want small-company stocks. ISCB's 0.04% expense ratio ties Schwab U.S. Small-Cap ETF (SCHA) for the lowest among the peers compared.
- Investors adding a small slice of small caps to a large-company core who can accept three-year volatility of 19.3% (as of October 27, 2026).
- Long-horizon investors who can wait out drops like ISCB's 29.9% fall, which took about 25 months to recover.
Look elsewhere if
- Retirees who need steady income. The trailing yield was 1.35% as of October 27, 2026, paid quarterly.
- Investors who prefer large, heavily traded funds. At about $212 million, ISCB ranks smallest of eight similar funds, while VB has about $143 billion.
- Anyone who may need to sell in a downturn. ISCB fell 25.8% in the 2022 bear market and needed 18 months to recover.
Close alternatives
Matched by legacy category (no holdings report for this fund).
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| ISCB this fund | 0.04% | $212.3M | +12.0% | +20.3% |
| DFAS Dimensional U.S. Small Cap ETF | 0.27% | $9.20B | +19.4% | +17.5% |
| VB Vanguard Small Cap ETF | 0.05% | $143.40B | +16.1% | +19.7% |
| SCHA Schwab U.S. Small-Cap ETF | 0.04% | $15.90B | +19.1% | +20.0% |
| ESML iShares ESG Aware MSCI USA Small-Cap ETF | 0.17% | $1.80B | +16.5% | +21.3% |
| BBMC JPMorgan BetaBuilders U.S. Mid Cap Equity E… | 0.07% | $1.70B | +16.5% | +22.2% |
| ISCV iShares Morningstar Small Cap Value ETF | 0.06% | $414.9M | +17.1% | +20.1% |
| ISCG iShares Morningstar Small-Cap Growth ETF | 0.06% | $652.9M | +10.3% | +21.2% |
Questions investors ask
Is ISCB good for a retirement portfolio?
ISCB may suit a supporting role in a retirement portfolio rather than serve as the main holding. It costs only 0.04% a year, but small-company stocks swing sharply. ISCB fell 29.9% from November 2021 to September 2022 and didn't fully recover until October 2024. Its yield was 1.35% as of October 27, 2026, so it adds little income. Someone who may need to sell during a downturn could face losses.
What is the ISCB expense ratio?
ISCB's expense ratio is 0.04%. That ties Schwab U.S. Small-Cap ETF (SCHA) for the lowest among the eight similar funds compared here. Vanguard Small Cap ETF (VB) charges 0.05%, and Dimensional U.S. Small Cap ETF (DFAS) charges 0.27%. The average for the group is 0.10%. The expense ratio is the yearly fee taken from the fund's assets. It is already reflected in the fund's returns.
How has ISCB performed over 1, 3 and 5 years?
Based on price history through October 27, 2026, ISCB returned 12% over one year. Over three years it returned 20.3% a year, or 74% in total. Over five years it returned 6.2% a year, or 35% in total. By calendar year, it lost 19.0% in 2022, then gained 19.6% in 2023, 10.9% in 2024 and 12.5% in 2025. It was up 11.9% for 2026 through October 27. Over one year it trailed most similar funds, ranking 7th of 8.
Does ISCB pay dividends?
Yes. ISCB pays dividends quarterly. Over the 12 months through October 27, 2026, it paid about $0.97 per share, a trailing yield of 1.35%. The payouts come from dividends paid by the small companies the fund owns. Many of those companies keep their profits to grow rather than pay them out. So ISCB yields modestly and is not built to be a main income source.
ISCB vs VB: what's the difference?
Both funds hold small-company stocks and cost almost the same: 0.04% for ISCB and 0.05% for VB. ISCB follows a Morningstar index, and the two funds' indexes differ. The biggest gap is size. VB had about $143.4 billion in net assets, compared with about $212.3 million for ISCB. VB returned 16.1% over one year (as of October 30, 2026), compared with 12% for ISCB (as of October 27, 2026). Over three years, they were close, at 19.7% and 20.3%.