VTI vs. SPTM: How These Popular Total Stock Market ETFs Compare on Risk, Returns, and Cost

Both the State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (NYSEMKT:SPTM) and the Vanguard Total Stock Market ETF (NYSEMKT:VTI) are designed as core, low-cost vehicles for broad U.S. stock exposure, making them favorites for long-term investors seeking simplicity.

This comparison highlights how VTI’s broader portfolio and vast scale compare to SPTM’s targeted approach to capturing approximately 90% of the investable U.S. equity universe.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.

SPTM and VTI are equally affordable with identical expense ratios, and their dividend yields are also incredibly close. Investors focused on fees and income are unlikely to experience any meaningful differences between these two funds.

Performance & risk comparison

What's inside

VTI offers exposure to virtually the entire U.S. stock market, spanning 3,527 stocks. The portfolio leans heavily on technology (35% of total assets), with sizable allocations to financial services and consumer cyclicals stocks as well. Its top holdings include Apple, Nvidia, and Microsoft, collectively representing around 19% of assets.

SPTM, in contrast, tracks the S&P Composite 1500 Index, covering about 90% of the U.S. equity universe with 1,511 holdings. Its sector mix and top holdings are similar to VTI, indicating substantial overlap. Technology makes up 34% of assets, and its top three holdings match VTI -- also making up around 19% of the fund.

Both funds avoid leverage, hedging, and ESG screens, instead adhering to a straightforward indexing approach.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investors

VTI and SPTM both provide widespread exposure to the overall stock market, with thousands of stocks across all industries. With similar underlying indexes, sector allocations, and top holdings, it's no surprise that these ETFs offer nearly identical risk, drawdowns, and performance history.

Their identical expense ratios and similar dividend yields also make it more challenging to decide between the two, as investors can expect to earn roughly the same amount in dividends and pay the same fees with each fund.

The primary differences between them, then, are the assets under management (AUM) and the number of holdings.

VTI is larger on both accounts. Its much higher AUM can provide greater liquidity, making it easier for investors to buy and sell large amounts without affecting the fund's price. Everyday investors who plan to hold their ETF long-term may not need this level of liquidity, but when nearly all other aspects of these funds are identical, it is a primary differentiator.

VTI's larger portfolio could also be a selling point for some investors. While SPTM only aims to capture around 90% of U.S. equities, VTI targets the entire U.S. stock market -- with around 2,000 more stocks than SPTM.

Those extra holdings haven't necessarily translated to higher returns or decreased risk, as the two funds have experienced roughly the same max drawdowns and five-year total returns. But for those looking for maximum diversification, VTI's massive portfolio could be a deciding factor.

Glossary

ETF: Exchange-traded fund that holds a basket of securities and trades on an exchange like a stock.
Expense ratio: Annual fund operating costs expressed as a percentage of the fund's average assets.
Dividend yield: Annual dividends paid by a fund divided by its current share price, shown as a percentage.
Total return: Investment performance including price changes plus all dividends, assuming dividends are reinvested.
Beta: Measure of a fund's volatility compared with a benchmark index, typically the S&P 500.
AUM: Assets under management; the total market value of all assets in the fund.
Max drawdown: The largest peak-to-trough decline in value over a specified period.
Indexing approach: Strategy that aims to replicate a market index rather than actively selecting individual securities.
U.S. equity universe: The full set of publicly traded US stocks available to investors.
Sector weights: The percentage of a fund's assets invested in each industry sector.
Leverage: Using borrowed money or derivatives to increase a fund's exposure beyond its invested capital.

Katie Brockman has positions in Vanguard Total Stock Market ETF. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Vanguard Total Stock Market 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.