Which Broad Market ETF Wins for Your Portfolio, the iShares ITOT or Schwab's SCHB?

The iShares Core S&P Total U.S. Stock Market ETF (NYSEMKT:ITOT) and Schwab U.S. Broad Market ETF (NYSEMKT:SCHB) are virtually identical, ultra-low-cost vehicles for investors seeking comprehensive, one-click exposure to the entire domestic equity market.

These funds aim to capture the performance of the entire investable U.S. stock market. While they track slightly different indices, their results are nearly indistinguishable, offering diversified exposure to thousands of large-, mid-, and small-cap companies in a single ticker. They serve as reliable core building blocks for many long-term portfolios.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

Cost is a negligible factor in this matchup, as both funds carry an identical 0.03% expense ratio. Income investors will also find no meaningful difference, as both ETFs currently provide a 1% yield.

Performance & risk comparison

What's inside

The iShares Core S&P Total U.S. Stock Market ETF provides exposure to 2,448 holdings, with its largest concentrations in Technology at 35%, Financial Services at 13%, and Healthcare at 10%. Its biggest positions include Nvidia (NASDAQ:NVDA) at 7.21%, Apple (NASDAQ:AAPL) at 5.90%, and Microsoft (NASDAQ:MSFT) at 4.86%. The fund launched in 2004. The iShares Core S&P Total U.S. Stock Market ETF has paid $1.65 per share over the trailing 12 months, which on its recent ~$170.7 share price works out to a 1% yield.

The Schwab U.S. Broad Market ETF tracks the Dow Jones U.S. Broad Stock Market Index and holds 2,384 stocks. Its sector tilts are very similar, including Technology at 37%, Financial Services at 12%, and Healthcare at 10%. Its largest positions include Nvidia at 7.23%, Apple at 5.94%, and Microsoft at 4.89%. The fund launched in 2009. The Schwab U.S. Broad Market ETF has paid $0.30 per share over the trailing 12 months, which on its recent ~$30.1 share price works out to a 1% yield.

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

Which looks like the better buy

Investors seeking comprehensive exposure to the U.S. stock market can choose between the iShares Core S&P Total U.S. Stock Market ETF (ITOT) and the Schwab U.S. Broad Market ETF (SCHB). Both are nearly identical.

Each uses a market cap-weighted approach, meaning the largest companies have an outsized impact on performance. Their low expense ratios allow you to buy and hold for the long term at a minimal cost. These similarities make deciding between them a challenge, although a few considerations might sway the decision.

If your brokerage is Charles Schwab, it makes sense to pick SCHB over ITOT. The fund underwent a 3-for-1 split in October of 2024, contributing to its lower share price. However, its AUM of $45.2 billion means it is less liquid than its rival at an AUM of $97.9 billion. That said, both boast large AUMs, so liquidity is not necessarily a critical factor.

Aside from ITOT's larger assets under management, what sets this fund apart from SCHB is that it tracks the widely followed S&P index family, and it has a longer history for evaluating fund performance over time. Ultimately, both are strong broad-market ETFs, and excellent vehicles for long-term passive investing.

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 has a disclosure policy.