The iShares Core S&P Total US Stock Market ETF (ITOT) and the Vanguard Total Stock Market ETF (VTI) both offer low-cost exposure to the U.S. equity market. While similar in expenses and returns, VTI has a larger AUM and more holdings, making it slightly more diversified. Both ETFs avoid complex strategies, keeping their approach straightforward.
VTI tracks the CRSP US Total Market Index, holding 3,527 stocks, with a heavy tech sector weight. Top holdings include Apple, Nvidia, and Microsoft. With over 24 years of history and a massive AUM, VTI is a well-established and liquid U.S. market ETF.
ITOT also covers the U.S. equity market but with fewer holdings at 2,498. The sector allocation is comparable to VTI, with technology as the largest sector. Both funds have similar top holdings and avoid complex strategies, providing broad market exposure.
For investors seeking maximum diversification or liquidity, VTI has the edge over ITOT due to its larger AUM and more holdings. However, in terms of expense ratios, returns, and risk profiles, the two ETFs are nearly identical, offering a straightforward and cost-effective investment option.
Read more at Yahoo Finance: How These Popular Total Stock Market ETFs Compare on Cost, Returns, and Diversification
