Better Broad-Market ETF: iShares ITOT vs. State Street SPTM
Key Points
Both SPTM and ITOT charge the same ultra-low expense ratio and offer a similar dividend yield.
ITOT holds more stocks and manages significantly more assets under management, but its five-year growth trails SPTM.
Sector weightings and top holdings are nearly identical, with both funds emphasizing technology giants.
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The State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (NYSEMKT:SPTM) and iShares Core S&P Total U.S. Stock Market ETF (NYSEMKT:ITOT) both deliver broad U.S. equity exposure with matching fees, but diverge in asset size, number of holdings, and historical growth over five years.
Both SPTM and ITOT aim to serve as core portfolio building blocks, offering comprehensive access to U.S. stocks across all market caps. This comparison examines their cost, returns, risk profile, portfolio construction, and any unique characteristics to help investors assess which may fit their needs best.
Snapshot (cost & size)
| Metric | SPTM | ITOT |
|---|---|---|
| Issuer | SPDR | IShares |
| Expense ratio | 0.03% | 0.03% |
| 1-yr return (as of 2026-03-11) | 21.4% | 21.6% |
| Dividend yield | 1.1% | 1.1% |
| Beta | 1.00 | 1.01 |
| AUM | $12.1 billion | $81.5 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.
SPTM and ITOT are equally affordable, both charging a minimal 0.03% expense ratio, and each delivers a 1.1% dividend yield, so neither fund stands out on cost or payout.
Performance & risk comparison
| Metric | SPTM | ITOT |
|---|---|---|
| Max drawdown (5 y) | -24.15% | -25.36% |
| Growth of $1,000 over 5 years | $1,674 | $1,606 |
What's inside
ITOT tracks a broad spectrum of U.S. equities, holding 2,484 stocks as of its 22.1-year history. Its sector allocations lean 33% to technology, 12% to financial services, and 10% to consumer cyclicals, with top positions in Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT). There are no notable quirks or special screens in play.
SPTM is similarly broad, covering 1,510 stocks with technology, financial services, and consumer cyclicals as the leading sectors. Its top holdings mirror ITOT, also led by Nvidia, Apple, and Microsoft. Both funds offer straightforward, comprehensive U.S. market access without leverage, hedging, or thematic tilts.
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 iShares Core S&P Total U.S. Stock Market ETF (ITOT) are both solid funds for investors looking to gain broad market exposure. Either is good as a low-cost, foundational component to your investment portfolio.
But subtle differences exist that may tilt the choice towards one or the other, depending on your investment goals. ITOT boasts a much larger AUM, which offers higher liquidity for active investors. The ETF also sports far more stocks, providing greater diversification and more comprehensive exposure of the total U.S. market .
SPTM’s smaller basket of stocks excludes some small-cap companies, but these tend to experience greater volatility, which contributed to ITOT’s higher max drawdown over the past five years. Consequently, SPTM could be viewed as offering a slightly higher quality basket of stocks. This makes the fund an attractive choice for investors who want an ETF to hold for the long term and have a “set it and forget it” mindset.
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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 and is short shares of Apple. The Motley Fool has a disclosure policy.
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