Updated
Updated · The Motley Fool · Jun 8
VTI Tops SPTM With 3,598 Holdings as Both ETFs Charge 0.03%
Updated
Updated · The Motley Fool · Jun 8

VTI Tops SPTM With 3,598 Holdings as Both ETFs Charge 0.03%

2 articles · Updated · The Motley Fool · Jun 8

Summary

  • VTI reaches far deeper into the U.S. market than SPTM, holding 3,598 stocks versus 1,512 and adding micro-cap exposure that SPTM largely excludes.
  • Returns and costs are nearly identical: VTI gained 28.2% over one year versus 27.9% for SPTM, while both charge a 0.03% expense ratio and yield 1.0%.
  • Over five years, SPTM slightly led on total growth and drawdown, turning $1,000 into $1,874 versus $1,817 for VTI and posting a 24.1% max drawdown against 25.4%.
  • Asset size is the biggest practical gap beyond holdings depth, with VTI managing $664.6 billion versus $13.6 billion for SPTM, though both are described as liquid core U.S. market funds.
  • For long-term investors, the comparison suggests brokerage preference may matter more than performance, because megacap tech dominates both portfolios and narrows the impact of VTI's broader reach.

Insights

Will mega-IPOs like SpaceX finally force a winner between the nearly identical VTI and SPTM stock ETFs?
Are traditional index funds like VTI now outdated compared to newer, capital-efficient investment strategies?
When a few tech giants rule the market, is the diversification in 'total market' ETFs just an illusion?