Which Is the Better Total Market ETF: Schwab's SCHB or Vanguard's VTI?
Portfolio builders weighing these core funds will find subtle differences in diversification and holdings that may influence long-term strategy.
Which Is the Better Total Market ETF: Schwab's SCHB or Vanguard's VTI?
Overview
The Schwab U.S. Broad Market ETF (NYSEMKT:SCHB) and the Vanguard Total Stock Market ETF (NYSEMKT:VTI) are nearly identical core holdings, offering broad U.S. equity exposure with matching 0.03% expense ratios.
These two exchange-traded funds (ETFs) serve as the primary building blocks for millions of diversified portfolios. While the Schwab U.S. Broad Market ETF and the Vanguard Total Stock Market ETF follow different underlying market indexes, they both offer a comprehensive look at the American corporate landscape. Investors often look at these funds as proxies for the entire U.S. economy, encompassing everything from trillion-dollar tech titans to smaller regional players. Because both are market-cap weighted, the largest companies have the biggest impact on performance, leading to a high degree of correlation between the two products. Choosing between them often comes down to specific index preferences or brokerage convenience rather than significant strategy differences.
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.
