VTI and SCHB each cost simply 0.03% in annual charges and ship almost equivalent one-year returns and yields.
VTI holds a broader mixture of shares — over 3,500 versus SCHB’s 2,400 — although each funds are tech-heavy.
VTI’s huge scale and better buying and selling quantity could enchantment to these prioritizing liquidity and seamless commerce execution.
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The Schwab U.S. Broad Market ETF (NYSEMKT:SCHB) and the Vanguard Whole Inventory Market ETF (NYSEMKT:VTI) are each designed to reflect your entire U.S. inventory market, making them core constructing blocks for diversified portfolios.
This comparability unpacks their similarities and delicate variations, serving to buyers weigh price, returns, danger, and portfolio make-up.
Metric | SCHB | VTI |
|---|
Issuer | Schwab | Vanguard |
Expense ratio | 0.03% | 0.03% |
1-yr return (as of Jan. 2, 2026) | 15.81% | 16.06% |
Dividend yield | 1.11% | 1.11% |
Beta (5Y month-to-month) | 1.04 | 1.04 |
AUM | $38 billion | $567 billion |
Beta measures worth volatility relative to the S&P 500. The 1-yr return represents whole return over the trailing 12 months.
Each funds are equally reasonably priced, with a 0.03% annual expense ratio. Their dividend yields are additionally matched at 1.11%, leaving little to separate them on price or payout.
Metric | SCHB | VTI |
|---|
Max drawdown (5 y) | -25.40% | -25.36% |
Progress of $1,000 over 5 years | $1,734 | $1,728 |
VTI tracks a broad index that covers large-, mid-, and small-cap U.S. corporations, providing publicity to three,527 shares. The fund is closely weighted towards expertise (making up 35% of whole property), with monetary companies and shopper cyclicals sectors additionally outstanding.
Its prime holdings embody Apple, Nvidia, and Microsoft, collectively making up simply over 19% of the portfolio.
SCHB goals for comparable market protection however holds a considerably narrower 2,407 shares. Like VTI, it skews towards expertise (34% of property), with financials and shopper cyclicals rounding out its prime three sectors.
Its largest positions match VTI’s, and mixed, these prime three shares make up simply over 18% of whole property. Neither fund has notable quirks or monitoring points, and each supply a plain-vanilla method to U.S. fairness publicity.
For extra steering on ETF investing, try the total information at this hyperlink.
VTI and SCHB are comparable in most methods. They provide equivalent expense ratios, dividend yields, and betas, which means buyers will not discover a distinction in charges, earnings, or danger stage between the funds.
These ETFs are additionally almost equivalent by way of efficiency. Whereas VTI has earned marginally increased 12-month whole returns, the funds’ earnings are so comparable that the majority buyers will not see a significant distinction.
The first variations, then, come right down to variety of holdings and property below mangement.
VTI is a a lot bigger fund on each accounts. Its bigger AUM gives higher liquidity, giving it an edge for buyers planning to purchase or promote giant quantities at a time. On a regular basis buyers are unlikely to commerce giant sufficient portions for the AUM to be a big promoting level, nevertheless it’s nonetheless an element to contemplate, particularly because it’s one of many solely actual variations between the 2 ETFs.
VTI additionally holds over 1,000 extra shares than SCHB, which might be a bonus for these searching for higher diversification. Whereas the bigger portfolio hasn’t essentially resulted in increased long-term whole returns or diminished danger in comparison with SCHB, these seeking to achieve publicity to a higher slice of the market could choose VTI. However, these searching for a barely narrower method could go for SCHB.
ETF: Trade-traded fund that holds a basket of securities and trades on an alternate like a inventory.
Expense ratio: Annual fund payment, expressed as a share of property, masking administration and working prices.
Dividend yield: Annual dividends paid by a fund or inventory divided by its present market worth.
Whole return: Funding efficiency together with worth modifications plus all dividends and distributions, assuming reinvestment.
Beta: Measure of an funding’s volatility in contrast with a benchmark index, typically the S&P 500.
AUM (Property below administration): Whole market worth of all property a fund or supervisor oversees.
Max drawdown: Largest peak-to-trough decline in worth over a particular interval, exhibiting worst historic loss.
Progress of $1,000: Illustration exhibiting how a $1,000 funding would have elevated or decreased over time.
Index: Basket of securities designed to trace the efficiency of a particular market or section.
Giant-cap: Firms with comparatively giant market values, sometimes tens or a whole lot of billions of {dollars}.
Mid-cap: Firms with medium-sized market values, usually between small-cap and large-cap corporations.
Small-cap: Firms with comparatively small market values, typically youthful or faster-growing however extra unstable.
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Katie Brockman has positions in Vanguard Whole Inventory Market ETF. The Motley Idiot has positions in and recommends Apple, Microsoft, Nvidia, and Vanguard Whole Inventory Market ETF. The Motley Idiot recommends the next choices: lengthy January 2026 $395 calls on Microsoft and quick January 2026 $405 calls on Microsoft. The Motley Idiot has a disclosure coverage.
On the lookout for a Whole Inventory Market ETF? This is How VTI and SCHB Stack Up for Buyers was initially revealed by The Motley Idiot
