Is One of These Broad Market ETFs Better Than the Other?
Both funds charge 0.03% expense ratios and delivered similar 1-year returns, but differ in holdings count and five-year performance.
Overview
Deciding between the Schwab U.S. Broad Market ETF (NYSEMKT:SCHB) and the State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF(NYSEMKT:SPTM) involves choosing between two exceptionally low-cost vehicles that differ primarily in their index depth and total holding counts.
Both funds provide simple, efficient entries into the broad U.S. stock market for a fraction of the cost of active management. These total market funds are often used by investors as foundational blocks to ensure they do not miss out on the growth of smaller companies while maintaining heavy exposure to proven blue-chip leaders. While one tracks the S&P Composite 1500, the other follows the Dow Jones U.S. Broad Stock Market Index.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.