VTV Offers Higher Yield While SPTM Delivers Broader Growth
Key Points
SPTM and VTV both offer broad U.S. equity exposure.
SPTM covers the full market, though it has a relatively heavy focus on the technology sector.
VTV focuses on large-cap value stocks with a higher yield and lower recent returns.
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SPDR Portfolio S&P 1500 Composite Stock Market ETF (NYSEMKT:SPTM) provides comprehensive access to the entire U.S. stock market, spanning all capitalizations. Vanguard Value ETF (NYSEMKT:VTV), in contrast, targets large-cap U.S. companies with value characteristics.
Here’s how these two core ETFs stack up for investors weighing diversification versus a value tilt.
Snapshot (cost & size)
| Metric | SPTM | VTV |
|---|---|---|
| Issuer | SPDR | Vanguard |
| Expense ratio | 0.03% | 0.04% |
| 1-yr return (as of 2025-10-27) | 17.39% | 8.71% |
| Dividend yield | 1.16% | 2.09% |
| AUM | $11.49 billion | $207.8 billion |
| Beta (5Y monthly) | 1.02 | 0.86 |
Beta measures price volatility relative to the S&P 500; figures use five-year monthly returns.
Both funds are low-cost, with SPTM offering a slightly lower expense ratio. VTV stands out for its higher dividend payout, which may appeal to income-focused investors seeking a larger yield.
Performance & risk comparison
| Metric | SPTM | VTV |
|---|---|---|
| Max drawdown (5 y) | 24.15% | 17.03% |
| Growth of $1,000 over 5 years | $2,062 | $1,810 |
What's inside
Vanguard Value ETF holds 314 large-cap U.S. stocks with a value orientation, emphasizing financial services (23%), industrials (16%), and healthcare (14%).
Its top holdings include JPMorgan Chase, Berkshire Hathaway, and Exxon Mobil. With an established track record of nearly 22 years and over $200 billion in assets under management (AUM) as of Oct. 28, 2025, VTV offers deep liquidity and long-term stability. There are no notable quirks or special structures impacting the fund.
SPDR Portfolio S&P 1500 Composite Stock Market ETF, by contrast, covers a broader swath of the U.S. equity market, spanning 1,510 stocks across all capitalizations.
Its sector exposure leans more heavily toward technology (35%), with Nvidia, Apple, and Microsoft among its largest positions. This broader diversification means SPTM captures more of the U.S. market’s growth engines, particularly in tech, but with less emphasis on dividend yield.
For more guidance on ETF investing, check out the full guide at this link.
Foolish take
While VTV is a smaller fund with only 314 large-cap stocks, it offers ample diversification with holdings across all sectors of the market with fairly even sector exposure. Although it's earned lower total returns compared to SPTM, it's also more stable and less prone to significant volatility.
SPTM, by contrast, offers more exposure to the technology industry, which can also result in more substantial growth. Tech stocks can be explosive, supercharging both long- and short-term earnings. With those lucrative gains, however, also comes the potential for more ups and downs.
Both ETFs can be smart buys. VTV can be a fantastic choice for income investors looking for a higher dividend yield and more stability, while SPTM is a powerhouse investment that carries slightly more risk, comparatively. The right choice for your portfolio will depend on your goals, risk tolerance, and timeline.
Glossary
ETF (Exchange-Traded Fund): A fund that trades on stock exchanges and holds a basket of securities like stocks or bonds.
Expense ratio: The annual fee, expressed as a percentage, that a fund charges to manage investors' money.
Dividend yield: The annual dividend income paid by a fund or stock, shown as a percentage of its price.
Beta: A measure of a fund’s volatility compared to the overall market; higher than 1 means more volatile.
AUM (Assets Under Management): The total market value of assets a fund manages on behalf of investors.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a specific period.
Value stocks: Stocks considered undervalued relative to fundamentals, often with lower prices and higher dividends.
Large-cap: Companies with a large market capitalization, typically over $10 billion.
Index: A benchmark representing a group of securities used to measure market or fund performance.
Liquidity: How easily an asset or fund can be bought or sold without affecting its price.
Sector exposure: The proportion of a fund’s assets invested in specific industries, like technology or healthcare.
Growth of $1,000: The increase in value of a $1,000 investment over a set period, showing total returns.
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JPMorgan Chase is an advertising partner of Motley Fool Money. Katie Brockman has positions in Vanguard Index Funds - Vanguard Value ETF. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, JPMorgan Chase, Microsoft, Nvidia, and Vanguard Index Funds - Vanguard Value ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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