Which Is the Better ETF, the iShares Total Market ITOT or Vanguard's Value-Oriented VTV?
Key Points
The iShares Core S&P Total U.S. Stock Market ETF provides exposure to the entire domestic market with a significant technology tilt, whereas the Vanguard Value ETF focuses on undervalued large-cap stocks.
Both funds offer an identical expense ratio of 0.03%, ranking them among the most affordable investment options for long-term core portfolios.
The Vanguard Value ETF has historically demonstrated lower price volatility and a higher dividend yield compared to the iShares Core S&P Total U.S. Stock Market ETF.
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The iShares Core S&P Total U.S. Stock Market ETF (NYSEMKT:ITOT) offers broad diversification across the entire domestic equity landscape, while the Vanguard Value ETF (NYSEMKT:VTV) isolates large-capitalization companies with lower-than-average valuations.
Investors choosing between broad domestic exposure and targeted factor strategies often weigh the trade-offs of growth potential and price stability. These two funds represent distinct approaches to U.S. equities, either capturing the entire investable universe or focusing exclusively on companies that appear undervalued relative to the broader market.
Snapshot (cost & size)
| Metric | VTV | ITOT |
|---|---|---|
| Issuer | Vanguard | iShares |
| Expense ratio | 0.03% | 0.03% |
| 1-yr return (as of June 3, 2026) | 26.41% | 25.86% |
| Dividend yield | 1.80% | 1.00% |
| Beta | 0.75 | 1.01 |
| AUM | $238.0 billion | $93.5 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. Dividend yield is the trailing-12-month distribution yield.
Both funds are exceptionally low-cost with identical 0.03% expense ratios. However, income seekers may find the Vanguard fund more appealing, as its 1.80% trailing-12-month distribution yield exceeds the 1.00% offered by the iShares fund.
Performance & risk comparison
| Metric | VTV | ITOT |
|---|---|---|
| Max drawdown (5 yr) | (17.00%) | (25.40%) |
| Growth of $1,000 over 5 years (total return) | $1,703 | $1,817 |
Historical data suggests that while a total market approach can lead to higher returns during bull markets, value-oriented strategies often demonstrate a different risk profile. The above table highlights how these differences have manifested in terms of growth and maximum price declines over the last 5 years.
What's inside
The iShares Core S&P Total U.S. Stock Market ETF seeks to track broad market results, with its portfolio currently listed with 2,498 holdings. Its composition includes a 34% allocation to technology, followed by financial services at 12% and communication services at 10%. Its largest positions include Nvidia (NASDAQ:NVDA) at 7.13%, Apple (NASDAQ:AAPL) at 6.23%, and Microsoft (NASDAQ:MSFT) at 4.34%. Launched in 2004, the iShares fund paid $1.61 per share over the trailing 12 months.
In contrast, the Vanguard Value ETF maintains a narrower focus with 331 holdings selected for their value characteristics. This portfolio emphasizes financial services at 22%, healthcare at 14%, and industrials at 14%. Its largest individual positions include JPMorgan Chase & Co (NYSE:JPM) at 3.11%, Berkshire Hathaway (NYSE:BRKB) at 2.87%, and Exxon Mobil (NYSE:XOM) at 2.51%. Also launched in 2004, the Vanguard fund has a trailing-12-month dividend of $3.97 per share.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
The iShares Core S&P Total U.S. Stock Market ETF (ITOT) and the Vanguard Value ETF (VTV) offer very different approaches to investing in the U.S. stock market. Since both provide low expense ratios, which is the better fund to buy depends on individual investor goals.
VTV targets value stocks among large-cap companies. This narrow focus results in its significantly smaller holdings compared to ITOT. However, since its stocks are considered undervalued, they possess the potential for outsized gains. This can be seen in the fund’s superior one-year return. It also boasts a higher dividend yield, which can be appealing to income-oriented investors.
ITOT gives you exposure to U.S. stocks across various market capitalizations and industries, providing far greater diversification than VTV. This means declines in any particular sector or set of companies won’t sink your portfolio’s performance.
Since ITOT includes mid-cap and small-cap stocks, it can capture the greater potential for share price gains that these smaller companies possess over their larger brethren. This is a solid ETF to serve as a foundation for investors who are starting to build their portfolios, or for those who want total U.S. stock market exposure.
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JPMorgan Chase is an advertising partner of Motley Fool Money. Robert Izquierdo has positions in Apple, JPMorgan Chase, Microsoft, Nvidia, and iShares Trust - iShares Core S&P Total U.S. Stock Market ETF. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, JPMorgan Chase, Microsoft, Nvidia, and Vanguard Value ETF. The Motley Fool has a disclosure policy.
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