The iShares Core S&P Total US Stock Market ETF (ITOT +0.32%) and the Vanguard Total Stock Market ETF (VTI +0.31%) both deliver low-cost, diversified U.S. equity exposure, but they differ in terms of fund size, number of holdings, and minor sector tilts.
This comparison unpacks subtle differences in cost, diversification, sector exposure, and risk profile to help investors decide which may better suit their needs.
Snapshot (cost & size)
| Metric | ITOT | VTI |
|---|---|---|
| Issuer | iShares | Vanguard |
| Expense ratio | 0.03% | 0.03% |
| 1-yr return (as of Jan. 3, 2025) | 14.69% | 14.76% |
| Dividend yield | 1.09% | 1.11% |
| Beta (5Y monthly) | 1.04 | 1.04 |
| AUM | $80 billion | $567 billion |
Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
Both ETFs are equally affordable with a 0.03% annual expense ratio. With very similar dividend yields as well, costs and payouts are closely aligned for cost-conscious investors.
Performance & risk comparison
| Metric | ITOT | VTI |
|---|---|---|
| Max drawdown (5 y) | -25.35% | -25.36% |
| Growth of $1,000 over 5 years | $1,730 | $1,728 |
What's inside
VTI tracks the CRSP US Total Market Index and holds 3,527 stocks, providing exposure to large-, mid-, and small-cap companies across growth and value styles.
Its largest sector is technology, making up 35% of assets, followed by financial services at 13% and consumer cyclical at 11%. The top holdings are Apple, Nvidia, and Microsoft. With a large assets under management (AUM) and a fund age of over 24 years, VTI is one of the most established and liquid U.S. market ETFs.
ITOT also sweeps the full U.S. equity market. However, with 2,498 holdings, it is slightly less diversified in terms of the number of stocks. Its sector allocation is similar, with technology at 34%, financial services at 13%, and consumer cyclical at 10%. The largest positions mirror VTI’s top lineup, and both funds avoid leverage, currency hedging, or ESG screens, keeping their strategies straightforward and broad.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
VTI and ITOT are both well-established total market ETFs with decades of history. With nearly identical foundations, there are few factors differentiating them.
While they both aim to encompass the overall market, VTI is much broader, with over 1,000 more stocks than ITOT. For investors seeking maximum diversification across all segments of the market, VTI has the edge.
VTI's assets under management (AUM) is also much larger than ITOT's. For the average investor, AUM likely won't play a significant role in deciding where to buy. However, it does provide greater liquidity, allowing investors to buy and sell larger amounts at a time without affecting the ETF's price.
In all other regards, the two funds are nearly indistinguishable. They offer identical expense ratios, so investors can expect to pay the same amount in fees with both funds. VTI offers a marginally higher dividend yield, but it's so slight that most investors won't notice a meaningful difference.
Performance-wise, the funds are also incredibly similar in both 12-month and five-year total returns. With identical betas and close to identical max drawdowns, they've also experienced similar levels of risk and volatility.
In short, AUM and the number of holdings are the main factors setting these two ETFs apart. For investors seeking greater diversification or liquidity, VTI has the advantage.
Glossary
ETF: Exchange-traded fund that holds a basket of securities and trades like a stock.
Expense ratio: Annual fund operating costs expressed as a percentage of the amount you invest.
Diversified U.S. equity exposure: Investment spread across many U.S. stocks to reduce risk from any single company.
Dividend yield: Annual dividends paid by a fund divided by its current share price, shown as a percentage.
Beta: Measure of an investment’s volatility compared with the overall market, often the S&P 500.
AUM (assets under management): Total market value of all assets a fund or manager oversees.
Max drawdown: Largest peak-to-trough decline in value over a specific period, showing worst historical loss.
Total return: Investment performance including price changes plus all dividends and distributions, assuming reinvestment.
Sector allocation: How a fund’s holdings are distributed across different industries, such as technology or financials.
Leverage (in funds): Use of borrowed money or derivatives to increase exposure beyond the fund’s actual capital.
Currency hedging: Strategy to reduce the impact of exchange-rate movements on investment returns.
ESG screens: Filters that include or exclude investments based on environmental, social, and governance criteria.
