Better Broad-Market ETF: ITOT vs. SPTM
Key Points
Both SPTM and ITOT deliver nearly identical ultra-low fees and similar sector allocations.
ITOT holds more stocks, is much larger, and trades with higher liquidity for large transactions.
Recent returns and yields are almost indistinguishable, but SPTM has shown a slightly smaller drawdown.
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The State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (NYSEMKT:SPTM) and the iShares Core SP Total US Stock Market ETF (NYSEMKT:ITOT) stand out for their broad U.S. equity exposure, near-identical costs, and very similar performance and sector makeup, with ITOT offering greater scale and liquidity.
Both SPTM and ITOT aim to track the total U.S. stock market across large, mid, and small caps, making them popular options for investors seeking broad, low-cost diversification. This matchup highlights the subtle but important differences that could matter for those prioritizing fund size, trading needs, or slight nuances in risk and performance.
Snapshot (cost & size)
| Metric | SPTM | ITOT |
|---|---|---|
| Issuer | SPDR | IShares |
| Expense ratio | 0.03% | 0.03% |
| 1-yr return (as of 2025-12-19) | 15.7% | 15.9% |
| Dividend yield | 1.1% | 1.1% |
| AUM | $11.9 billion | $79.1 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
Both SPTM and ITOT are priced at an extremely low 0.03% expense ratio, making them among the most affordable options for broad U.S. stock market exposure, and both offer a 1.1% dividend yield as of the latest data.
Performance & risk comparison
| Metric | SPTM | ITOT |
|---|---|---|
| Max drawdown (5 y) | -24.14% | -25.36% |
| Growth of $1,000 over 5 years | $1,822 | $1,744 |
What's inside
ITOT covers nearly the entire investable U.S. equity universe, holding 2,490 stocks as of Dec. 2025. Its largest sector weights are technology (34%), financial services (13%), and consumer cyclicals (11%), with top holdings concentrated in Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT). With $79.1 billion in assets under management (AUM) and a fund history stretching almost 22 years, ITOT is one of the most established and liquid total market ETFs available. There are no leverage, currency, or ESG quirks to watch for.
SPTM offers a nearly identical sector profile and top holdings, also led by Nvidia, Apple, and Microsoft, but holds a slightly smaller basket of 1,511 stocks. Its focus remains on the broad U.S. market, but with less depth in the smallest companies. SPTM is considerably smaller in AUM and may appeal to investors already using the State Street SPDR suite for portfolio building blocks.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
The State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) and the iShares Core SP Total US Stock Market ETF (ITOT) are very similar, including the expense ratio, making a choice between the two a tough one.
ITOT has a few key differences compared to SPTM. Its AUM is far greater, offering more liquidity. Moreover, ITOT has a longer track record, and its larger set of holdings provides exposure to nearly the entire U.S. stock market.
SPTM may be younger than ITOT, but it still encompasses the top 1,511 U.S. stocks. This provides investors with broad market exposure, while helping it achieve a lower drawdown than ITOT. As a result, SPTM can be seen as offering a bit higher quality, but lower growth potential compared to ITOT, as it isn't exposing you to some smaller companies.
Still, these two ETFs are very much comparable for investors looking for broad market exposure. ITOT is for those who like an ETF with a longer history and larger AUM. SPTM is for investors who want a greater concentration in the largest U.S. stocks.
Glossary
ETF: Exchange-traded fund; a fund that trades on stock exchanges and holds a basket of securities.
Expense ratio: The annual fee, as a percentage of assets, charged by a fund to cover operating costs.
Dividend yield: Annual dividends paid by a fund or stock, expressed as a percentage of its current price.
Beta: A measure of an investment's volatility compared to the overall market, typically the S&P 500.
AUM: Assets under management; the total market value of assets that a fund manages.
Liquidity: How easily and quickly an asset can be bought or sold without affecting its price.
Max drawdown: The largest observed percentage drop from a fund's peak value to its lowest point over a period.
Sector allocation: The distribution of a fund's investments across different industry sectors.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Composite index: An index that combines multiple market segments or asset classes into a single benchmark.
Small caps: Companies with relatively small market capitalizations, typically considered higher risk and higher growth.
Leverage: The use of borrowed money or financial derivatives to increase the potential return of an investment.
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Robert Izquierdo has positions in Apple, Microsoft, Nvidia, and iShares Trust - iShares Core S&P Total U.s. Stock Market ETF. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. 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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