ITOT vs. VTV: Is Broad Market Exposure or Value Stock Stability the Better Buy for Investors?
Key Points
ITOT covers the entire U.S. stock market with heavy tech exposure, while VTV focuses on large-cap value stocks.
Both ETFs have an identical ultra-low expense ratio, but VTV pays a higher dividend yield.
ITOT has outperformed VTV over the past year, though with a deeper max drawdown.
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The iShares Core S&P Total U.S. Stock Market ETF (NYSEMKT:ITOT) offers broad-market exposure and more technology stocks, while the Vanguard Value ETF (NYSEMKT:VTV) sticks to large-cap value names and higher dividend income.
This comparison unpacks how the two ETFs differ in cost, performance, risk, and holdings to help investors understand which may better fit their needs.
Snapshot (cost & size)
| Metric | VTV | ITOT |
|---|---|---|
| Issuer | Vanguard | iShares |
| Expense ratio | 0.03% | 0.03% |
| 1-yr return (as of March 14, 2026) | 17.03% | 20.18% |
| Dividend yield | 1.88% | 1.10% |
| Beta (5Y monthly) | 0.76 | 1.04 |
| AUM | $239 billion | $82 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.
Both funds are extremely affordable, charging just 0.03% in annual expenses. However, VTV offers a higher dividend yield, which could appeal to income-focused investors. ITOT’s lower yield reflects its heavier allocation to growth-oriented sectors, such as technology.
Performance & risk comparison
| Metric | VTV | ITOT |
|---|---|---|
| Max drawdown (5 y) | -17.03% | -25.35% |
| Growth of $1,000 over 5 years | $1,497 | $1,572 |
What's inside
ITOT holds more than 2,400 stocks, spanning the entire U.S. equity market. Its portfolio leans heavily toward technology (making up nearly one-third of assets), and its top holdings include mega-cap industry leaders like Nvidia, Apple, and Microsoft. The fund’s broad reach provides instant diversification across sectors and market caps.
VTV, by contrast, includes only 312 holdings and is built around large-cap value stocks. Its biggest weights are in financial services (23%), healthcare (15%), and industrials (14%), and its largest holdings are JPMorgan Chase, Berkshire Hathaway, and Exxon Mobil.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Both ITOT and VTV offer stability in their own unique ways.
ITOT is incredibly broad, spanning the entire U.S. stock market with thousands of holdings of all sizes. That level of diversification can help mitigate risk during periods of volatility, as it’s less likely that any single company will sway the fund’s overall performance.
VTV is more concentrated, with only around 300 holdings, but it has a much greater focus on stocks from mature companies in established industries. Value stocks are built on robust fundamentals, making them more stable during economic rough patches. Most value stocks also pay consistent dividends, making this ETF a good choice for investors seeking passive dividend income.
When it comes to earning potential, ITOT has an edge. Because it covers the market as a whole, it tilts heavily toward the tech sector. While that has historically helped it earn higher total returns than VTV, it’s also led to more significant price swings over the last five years.
Choosing between the two will largely depend on your investment goals. If you’re looking for maximum diversification with greater exposure to tech stocks, you can’t beat a broad fund like ITOT. On the other hand, if you’re looking to invest in more established companies with a higher-paying dividend, VTV has the advantage.
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JPMorgan Chase is an advertising partner of Motley Fool Money. Katie Brockman has positions in Vanguard Value ETF. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, JPMorgan Chase, Microsoft, Nvidia, and Vanguard Value ETF and is short shares of Apple. The Motley Fool has a disclosure policy.
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