Which Small Cap ETF Is the Better Buy in 2026? iShares and JPMorgan Have Compelling Offerings

JPMorgan BetaBuilders U.S. Small Cap Equity ETF (BBSC) and iShares Morningstar Small-Cap ETF (ISCB) offer different approaches to small-cap investing. BBSC delivers superior recent performance (35.8% 1-year return vs 27.8%) with a more concentrated portfolio of 728 holdings, while ISCB provides broader diversification with 1,557 holdings, lower costs (0.04% vs 0.09% expense ratio), and higher dividend yield (1.30% vs 1.00%). The article recommends BBSC as the better buy based on stronger performance metrics, despite ISCB's advantages in cost and diversification.