ITOT vs. SPTM: Which Total Stock Market ETF Is the Better Buy for Investors?
Key Points
SPTM and ITOT provide broad domestic equity exposure with identical low expense ratios.
ITOT manages a significantly larger asset base, which can offer greater liquidity.
Both ETFs maintain heavy concentrations in technology stocks.
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The State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (NYSEMKT:SPTM) and the iShares Core S&P Total U.S. Stock Market ETF (NYSEMKT:ITOT) both serve as foundational building blocks for long-term investors seeking total U.S. stock market coverage.
The two ETFs track similar underlying indexes, resulting in overlapping portfolios that capture large-, mid-, and small-cap companies in a single fund. Here’s how to decide on the right one for you.
Snapshot (cost & size)
| Metric | SPTM | ITOT |
|---|---|---|
| Issuer | State Street | iShares |
| Expense ratio | 0.03% | 0.03% |
| 1-yr return (as of May 15, 2026) | 28.40% | 28.45% |
| Dividend yield | 1.09% | 1.03% |
| Beta (5Y monthly) | 1.01 | 1.04 |
| Assets under management (AUM) | $13.5 billion | $89.0 billion |
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.
Both funds are highly cost-efficient, sharing a 0.03% expense ratio that makes them among the most affordable options available for retail investors. ITOT has a slightly lower trailing-12-month dividend yield than SPTM, which could make a difference when these two ETFs share several nearly identical features.
Performance & risk comparison
| Metric | SPTM | ITOT |
|---|---|---|
| Max drawdown (5 yr) | -24.15% | -25.35% |
| Growth of $1,000 over 5 years (total return) | $1,883 | $1,829 |
What's inside
ITOT provides broad exposure to the domestic equity market, with its sector composition led by technology at 34%, financial services at 12%, and communication services at 10%. The fund holds 2,504 stocks, and its largest positions include Nvidia, Apple, and Microsoft. This ETF launched in 2004 and has paid $1.61 per share over the trailing 12 months.
SPTM provides a similar sector profile, allocating 34% to technology, 12% to financial services, and 11% to communication services. Its top holdings are Nvidia, Apple, and Microsoft, matching ITOT. It holds 1,511 securities and has a trailing-12-month dividend of $0.95 per share.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
SPTM and ITOT are very similar in most meaningful ways for investors, but there are a couple of minor differences that could have an impact on your bottom line.
ITOT holds around 1,000 more stocks than SPTM, which could appeal to investors seeking maximum diversification. That broader reach hasn’t necessarily translated to a significant difference in volatility or earnings, as both funds have very similar max drawdowns and one- and five-year total returns. However, if you’re looking to capture the largest snapshot of the overall market, that extra diversification could be a selling point.
Also, ITOT’s larger assets under management (AUM) can offer investors greater liquidity, making it easier to buy and sell large amounts without affecting the ETF’s share price. This typically doesn’t have a major impact on everyday investors, but given that it’s one of the few differences between these funds, it’s worth considering.
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Katie Brockman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
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