Is the iShares Core S&P Total U.S. Stock Market ETF the Best Broad Market Fund?
Key Points
The Schwab U.S. Broad Market ETF and the iShares Core S&P Total U.S. Stock Market ETF both offer an identical 0.03% expense ratio and 1.0% dividend yield.
While both funds target the total U.S. market, the iShares Core S&P Total U.S. Stock Market ETF is significantly larger with $91.1 billion in assets under management (AUM).
Performance and risk metrics are nearly mirrored, with both ETFs showing a 1.01 beta and an identical five-year maximum drawdown of -25.4%.
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The Schwab U.S. Broad Market ETF (NYSEMKT:SCHB) and the iShares Core S&P Total U.S. Stock Market ETF (NYSEMKT:ITOT) are nearly identical in cost and performance, making the choice largely a matter of issuer preference or brokerage availability.
Investors seeking to capture the entirety of American corporate growth often turn to total market funds as a one-stop solution. By holding the Schwab fund or the iShares fund, one can avoid the need to pick individual sectors or stocks, instead relying on the market's own weighting system to drive returns. This comparison examines how these two low-cost giants stack up in terms of portfolio composition and historical volatility.
Snapshot (cost & size)
| Metric | SCHB | ITOT |
|---|---|---|
| Issuer | Schwab | iShares |
| Expense ratio | 0.03% | 0.03% |
| 1-yr return (as of May 11, 2026) | 32.3% | 32.4% |
| Dividend yield | 1.0% | 1.0% |
| Beta | 1.01 | 1.01 |
| AUM | $42.1B | $91.1B |
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.
Cost is a primary driver of long-term success, and both the Schwab fund and the iShares fund excel here with a 0.03% expense ratio. This ultra-low fee means that only $3 out of every $10,000 invested goes toward management costs annually. With both funds also offering a 1.0% dividend yield, the income generated is essentially identical, allowing investors to focus on other factors like liquidity or brokerage preference.
Performance & risk comparison
| Metric | SCHB | ITOT |
|---|---|---|
| Max drawdown (5 yr) | (25.4%) | (25.4%) |
| Growth of $1,000 over 5 years (total return) | $1,865 | $1,861 |
What's inside
The iShares Core S&P Total U.S. Stock Market ETF tracks a broad index that includes 2,506 holdings, though it provides comprehensive exposure across sectors like Technology at 32%, Financial Services at 13%, and Consumer Cyclical at 10%. Its largest positions include Nvidia Corp (NASDAQ:NVDA) at 7.44%, Apple Inc (NASDAQ:AAPL) at 5.99%, and Microsoft Corp (NASDAQ:MSFT) at 4.27%. These technology giants command a significant portion of the portfolio, reflecting the current market-cap-weighted reality of the U.S. stock market. Launched in 2004, the iShares fund provides a window into the total market.
In comparison, the Schwab U.S. Broad Market ETF holds 2,420 positions, offering a more traditional total market structure since its launch in 2009. Its sector allocation is also led by Technology at 31%, followed by Financial Services at 13% and Healthcare at 10%. Its largest positions include Nvidia Corp (NASDAQ:NVDA) at 7.26%, Apple Inc (NASDAQ:AAPL) at 5.96%, and Microsoft Corp (NASDAQ:MSFT) at 4.42%. Over the trailing 12 months, the Schwab fund has a trailing-12-month dividend of $0.30 per share. Both products are highly efficient, with no reported quirks to complicate the investment case.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
There is not a lot of difference between these two all-cap, broad market ETFs. They include basically the same number of holdings, have similar returns, and both have very low expense ratios. These two ETFs even have similar distribution yields, although the Schwab yield is a tad higher at 1.07% compared to 1.03% for the iShares yield, so this different is neglible.
These types of ETFs often serve as a foundation for a broader portfolio, giving investors an ETF that is representative of the entire U.S. market. Typically, an investor will build a portfolio around an all-market ETF like these two, adding exposure to large-caps, small-caps, growth, and value investments. In addition, more aggressive growth or tech-oriented stocks or ETFs are needed to generate alpha and long-term returns. They can be offset by more stable dividend or income funds, or those that invest in value stocks.
Schwab and iShares are two of the biggest, most respected names in the investment world, so you really canʻt go wrong with either one of these ETFs.
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Dave Kovaleski 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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