Broad-Market ETF Showdown: Do These Extra Stocks Really Move the Needle for VTI?
Key PointsVanguard Morningstar Total Stock Market ETF provides significantly broader diversification with more than 3,500 holdings compared to State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF.
State Street's S&P 1500 Composite Stock Market ETF (SPTM) and Vanguard's Morningstar Total Stock Market ETF (VTI) share the same expense ratio. However, they differ in breadth - SPTM focuses on 1,500 stocks while VTI offers exposure to over 3,500 holdings. Both ETFs are essential tools for investing in U.S. equities. SPTM follows the S&P Composite 1500 Index, which includes about 90% of the investable market.
VTI, on the other hand, tracks the CRSP US Total Market Index, aiming for near 100% coverage. VTI is the larger of the two, managing $2.3 trillion in assets under management (AUM), compared to SPTM's $14 billion. The beta, a measure of price volatility relative to the S&P 500, is calculated from monthly returns over the fund's history.
The 1-year return represents the total return over the past year. Dividend yield is the trailing-12-month distribution yield.
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