Is State Street's SPTM a Better U.S. Market ETF Than Vanguard's VTI?
Key Points
SPTM matches VTI on cost but offers a slightly higher dividend yield.
VTI holds a much larger number of stocks, while SPTM leans a bit more toward technology and communication services.
Both ETFs show similar recent returns and risk profiles, making structure and sector nuance the key differentiators.
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The Vanguard Total Stock Market ETF (NYSEMKT:VTI) and the State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (NYSEMKT:SPTM) both offer ultra-low fees, broad U.S. equity exposure, and nearly identical performance, but differ in sector tilt, portfolio breadth, and dividend yield.
Both VTI and SPTM aim to provide investors with comprehensive access to the U.S. stock market, spanning large-, mid-, and small-cap companies. This comparison explores how each ETF approaches the market and what may set them apart for investors seeking broad, low-cost equity exposure.
Snapshot (cost & size)
| Metric | VTI | SPTM |
|---|---|---|
| Issuer | Vanguard | SPDR |
| Expense ratio | 0.03% | 0.03% |
| 1-yr return (as of 2026-03-24) | 13.8% | 13.7% |
| Dividend yield | 1.1% | 1.1% |
| Beta | 1.01 | 1.00 |
| AUM | $2.1 trillion | $12.2 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 among the lowest-cost ways to access the U.S. stock market, with expense ratios of just 0.03%.
Performance & risk comparison
| Metric | VTI | SPTM |
|---|---|---|
| Max drawdown (5 y) | -25.37% | -24.13% |
| Growth of $1,000 over 5 years | $1,591 | $1,641 |
What's inside
SPTM tracks a broad swath of the U.S. market, holding 1,509 stocks with a noticeable tilt toward technology (34%) and communication services (11%). Its largest positions are Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT), and the fund has over 25 years of history. SPTM is designed for simplicity, with no leverage, currency hedging, or other quirks, making it a straightforward core holding.
VTI offers an even broader reach, with 3,598 holdings and a sector mix led by technology (32%), financial services (13%), and consumer cyclical companies (10%). The top holdings mirror those of SPTM — Nvidia, Apple, and Microsoft — though VTI’s deeper roster may appeal to those seeking the widest possible diversification across the U.S. equity landscape.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Both the Vanguard Total Stock Market ETF (VTI) and the State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) are solid choices for investors seeking broad U.S. market exposure. Picking between them comes down to a few key factors, since they are virtually identical in expense ratio, dividend yield, and beta.
SPTM seeks to mirror the performance of the S&P 1500. It doesn’t have the broad basket of stocks boasted by VTI, but since it doesn’t include as many small-cap holdings, which tend to be more volatile in performance, its max drawdown over the past five years is a bit lower.
VTI has more than double the holdings of SPTM, giving investors an ETF that is truly representative of the U.S. stock market. In addition, this delivers greater diversification, which can shield it from downturns in certain sectors or stocks that may cause a bigger impact to State Street’s ETF. VTI also has far larger assets under management, granting greater liquidity.
VTI is the choice for investors who want its larger diversity of stocks and higher AUM. SPTM is for those who prefer to focus on the S&P 1500 over holding smaller companies.
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Robert Izquierdo has positions in Apple, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Vanguard Total Stock Market ETF and is short shares of Apple. The Motley Fool has a disclosure policy.
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