Vanguard VTI vs. Schwab SCHB: Which Broad Market ETF Is the Better Buy for Investors?
Key Points
VTI and SCHB provide ultra-low-cost exposure to the U.S. equity market with identical expense ratios.
VTI holds around 1,000 more positions than SCHB, offering deeper reach into small-cap territory.
Both funds delivered nearly identical returns over the past five years.
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The Vanguard Total Stock Market ETF (NYSEMKT:VTI) and the Schwab U.S. Broad Market ETF (NYSEMKT:SCHB) are nearly identical in cost and performance, offering diversified exposure to thousands of publicly traded companies.
However, they differ primarily in the depth of their reach into the smallest market segments and the size of their total assets under management (AUM). Here’s how the two stack up overall.
Snapshot (cost & size)
| Metric | SCHB | VTI |
|---|---|---|
| Issuer | Schwab | Vanguard |
| Expense ratio | 0.03% | 0.03% |
| 1-yr return (as of June 28, 2026) | 21.0% | 21.2% |
| Dividend yield | 1.01% | 1.01% |
| Beta (5Y monthly) | 1.04 | 1.03 |
| AUM | $43.3 billion | $660.7 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.
Fees are a non-factor in this matchup, as both funds charge a minimal 0.03% expense ratio. Payouts are also balanced, with each fund providing a 1.01% trailing-12-month distribution yield for income-seeking investors.
Performance & risk comparison
| Metric | SCHB | VTI |
|---|---|---|
| Max drawdown (5 yr) | -25.40% | -25.36% |
| Growth of $1,000 over 5 years (total return) | $1,747 | $1,744 |
What’s inside
VTI provides exposure to nearly 3,500 stocks, reaching further into the small-cap market than its competitor by tracking the CRSP US Total Market Index. Its sector allocation is led by technology at 37% of assets, followed by financial services and communication services. Its largest positions include Nvidia, Apple, and Microsoft.
SCHB focuses on 2,356 holdings, resulting in a slightly higher concentration in large-cap names as it follows the Dow Jones U.S. Broad Stock Market Index. Its sector profile is similar, led by technology at 37%, and its largest positions match those of VTI.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
VTI and SCHB are remarkably similar in most meaningful ways, offering the same expense ratios and dividend yields and close to identical total returns and max drawdowns over the last five years.
The primary difference between the two comes down to diversification. While both funds hold thousands of stocks, VTI includes roughly 1,000 additional holdings and offers greater exposure across the market.
That diversification has not necessarily led to a difference in risk profile or returns, but for investors seeking access to as much of the market as possible, VTI could have the edge over SCHB.
The other difference is assets under management (AUM). VTI offers a substantially larger AUM, which provides greater liquidity and makes it easier for investors to buy and sell large amounts without affecting the ETF’s share price. This likely won’t have a major impact on everyday investors, but given how few differences there are between these two funds, it’s a factor to consider.
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Katie Brockman has positions in Vanguard Total Stock Market ETF. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
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