iShares Morningstar Small Cap Value ETF

iShares Morningstar Small Cap Value ETF (ISCV) is a BlackRock index fund. It tracks the Morningstar US Small Cap Broad Value Extended Index, which holds smaller US companies that trade at low prices compared with their earnings, sales and cash flow. Its 0.06% expense ratio is well below the 0.20% average of similar funds. As of July 31, 2026, it held 1,049 stocks, and no single stock made up much more than half a percent of the fund.

• Over the year to Oct 27, 2026, ISCV returned +17.1%, 5th of 9 among similar funds.
• Its 5-year annualized return was +8.3%.
• Its worst full calendar year was 2022 (-10.6%); its best was 2023 (+16.6%).
• The deepest fall in its price history was 25.3% (Nov 25, 2024 to Apr 8, 2025), recovered by Nov 26, 2025.

As of Jul 31, 2026, the fund held 1,049 securities; the ten largest made up 4.89% of assets. It also reported 5.55% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jul 31, 2026, investors withdrew a net $3.6M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +1.21%, +4.47%, +1.55%.

ISCV tracks the Morningstar US Small Cap Broad Value Extended Index, which Morningstar designs and maintains. Morningstar starts with a broad index that covers about 99.5% of the value of US public stocks, keeping only shares that trade easily. "Small cap" here means companies ranked roughly between the 90th and 99.5th percentile by size. The largest company in the index was worth $29.91 billion as of April 30, 2026. Morningstar then labels each stock value, blend or growth. Value stocks have low prices compared with their earnings, book value (net worth on the balance sheet), sales and cash flow, and they tend to have higher dividend yields.

Each stock's weight depends on the value of its shares available to the public, so bigger companies count for more. Even so, no stock dominates. As of July 31, 2026, the 10 largest of 1,049 holdings made up just 4.89% of the fund. The top three were Host Hotels & Resorts, Best Buy and Jones Lang LaSalle. As of April 30, 2026, a large share of the index was in consumer goods and services and financial companies.

BlackRock uses representative sampling. That means the fund may skip some index stocks, but it must keep at least 80% of its assets in stocks from the index. The fund may also use futures (contracts to buy an index at a set price later), hold cash, and lend out up to one-third of its assets. The prospectus reports portfolio turnover of 43%.

• ISCV charges 0.06% a year, versus an average of 0.2% for the similar funds below (2nd of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $6 in the first year and $77 over 10 years (assuming a 5% annual return).

It adds smaller, lower-priced US companies that make up only a small part of large-company core funds, and it does so at very low cost.

ISCV can add smaller, lower-priced US companies to a portfolio built mostly on large ones. It costs 0.06% a year, which is $77 over 10 years on $10,000 in the SEC's standard example. As of October 27, 2026, its yield over the past 12 months was 1.91%, paid quarterly. It has lagged the broad market. Over the 10 years to December 31, 2025, it returned 8.43% a year, while the Morningstar US Market Index returned 14.4%.

The swings can be sharp. The fund lost 39.71% in the first quarter of 2020 and 16.8% in 2018. In the 2022 bear market it fell 20.8%, then recovered about four months after its low. Since March 2021, its deepest drop was 25.3%, ending in April 2025, and it took 7.6 months to recover. Anyone forced to sell during a stretch like that would sell at low prices. The figures here don't go back to 2008. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.