VTI and SCHB both charge just 0.03% in annual fees and deliver nearly identical one-year returns and yields.
VTI holds a broader mix of stocks — over 3,500 versus SCHB’s 2,400 — though both funds are tech-heavy.
VTI’s vast scale and higher trading volume may appeal to those prioritizing liquidity and seamless trade execution.
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The Schwab U.S. Broad Market ETF (NYSEMKT:SCHB) and the Vanguard Total Stock Market ETF (NYSEMKT:VTI) are both designed to mirror the entire U.S. stock market, making them core building blocks for diversified portfolios.
This comparison unpacks their similarities and subtle differences, helping investors weigh cost, returns, risk, and portfolio makeup.
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 monthly) | 1.04 | 1.04 |
AUM | $38 billion | $567 billion |
Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
Both funds are equally affordable, with a 0.03% annual expense ratio. Their dividend yields are also matched at 1.11%, leaving little to separate them on cost or payout.
Metric | SCHB | VTI |
|---|
Max drawdown (5 y) | -25.40% | -25.36% |
Growth of $1,000 over 5 years | $1,734 | $1,728 |
VTI tracks a broad index that covers large-, mid-, and small-cap U.S. companies, offering exposure to 3,527 stocks. The fund is heavily weighted toward technology (making up 35% of total assets), with financial services and consumer cyclicals sectors also prominent.
Its top holdings include Apple, Nvidia, and Microsoft, together making up just over 19% of the portfolio.
SCHB aims for similar market coverage but holds a somewhat narrower 2,407 stocks. Like VTI, it skews toward technology (34% of assets), with financials and consumer cyclicals rounding out its top three sectors.
Its largest positions match VTI’s, and combined, these top three stocks make up just over 18% of total assets. Neither fund has notable quirks or tracking issues, and both offer a plain-vanilla approach to U.S. equity exposure.
For more guidance on ETF investing, check out the full guide at this link.
VTI and SCHB are similar in most ways. They offer identical expense ratios, dividend yields, and betas, meaning investors won’t notice a difference in fees, income, or risk level between the funds.
These ETFs are also nearly identical in terms of performance. While VTI has earned marginally higher 12-month total returns, the funds’ earnings are so similar that most investors won’t see a meaningful difference.
The primary differences, then, come down to number of holdings and assets under mangement.
VTI is a much larger fund on both accounts. Its larger AUM provides greater liquidity, giving it an edge for investors planning to buy or sell large amounts at a time. Everyday investors are unlikely to trade large enough quantities for the AUM to be a significant selling point, but it’s still a factor to consider, especially since it’s one of the only real differences between the two ETFs.
VTI also holds over 1,000 more stocks than SCHB, which could be an advantage for those seeking greater diversification. While the larger portfolio hasn’t necessarily resulted in higher long-term total returns or reduced risk compared to SCHB, those looking to gain exposure to a greater slice of the market may prefer VTI. On the other hand, those looking for a slightly narrower approach may opt for SCHB.
ETF: Exchange-traded fund that holds a basket of securities and trades on an exchange like a stock.
Expense ratio: Annual fund fee, expressed as a percentage of assets, covering management and operating costs.
Dividend yield: Annual dividends paid by a fund or stock divided by its current market price.
Total return: Investment performance including price changes plus all dividends and distributions, assuming reinvestment.
Beta: Measure of an investment’s volatility compared with a benchmark index, often the S&P 500.
AUM (Assets under management): Total market value of all assets a fund or manager oversees.
Max drawdown: Largest peak-to-trough decline in value over a specific period, showing worst historical loss.
Growth of $1,000: Illustration showing how a $1,000 investment would have increased or decreased over time.
Index: Basket of securities designed to track the performance of a specific market or segment.
Large-cap: Companies with relatively large market values, typically tens or hundreds of billions of dollars.
Mid-cap: Companies with medium-sized market values, generally between small-cap and large-cap firms.
Small-cap: Companies with relatively small market values, often younger or faster-growing but more volatile.
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Katie Brockman has positions in Vanguard Total Stock Market ETF. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Vanguard Total Stock Market ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Looking for a Total Stock Market ETF? Here’s How VTI and SCHB Stack Up for Investors was originally published by The Motley Fool
