Both the iShares Core S&P Total U.S. Stock Market ETF (NYSEMKT:ITOT) and the Vanguard Morningstar Total Stock Market ETF (NYSEMKT:VTI)aim to capture the entire investable U.S. stock market.
While they track slightly different benchmarks, they both serve as foundational building blocks for a diversified portfolio, and the choice often comes down to brand preference rather than significant differences in performance or cost.
Snapshot (cost & size)
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Both ETFs are exceptionally cost-efficient, featuring a 0.03% expense ratio. This means investors pay just $3 annually for every $10,000 invested. Their dividend payouts are also aligned, with each providing a similar 1% yield.
Performance & risk comparison
What’s inside
VTI maintains a massive portfolio of 3,531 holdings, aiming for exhaustive coverage of the domestic equity market. The portfolio is market-cap weighted, leading to a heavy concentration in technology at 36% of assets, while financial services and industrials follow at 12% and 10%, respectively. Its largest positions include Nvidia, Apple, and Microsoft.
ITOT tracks a slightly different benchmark, resulting in a narrower but still broad collection of 2,449 stocks. Its sector weights closely mirror its competitor, and its top three holdings also match those of VTI.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
In most meaningful ways, VTI and ITOT are virtually identical. With similar one- and five-year total returns, expense ratios, and portfolio makeup, investors won’t notice many differences between the two funds that impact their bottom line.
VTI is significantly larger in terms of its assets under management (AUM), which can provide greater liquidity and make it easier for investors to buy and sell large amounts at a time. Because both funds are massive, however, VTI’s larger AUM likely won’t make much of a difference for the average investor.
