Better Broad-Market ETF: ITOT vs. SPTM

Core Insights - The State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) and the iShares Core SP Total US Stock Market ETF (ITOT) are distinguished by their scale, liquidity, and low costs, making them attractive for investors seeking broad U.S. equity exposure [1][9] Fund Characteristics - Both SPTM and ITOT aim to track the total U.S. stock market, covering large, mid, and small caps, appealing to investors looking for low-cost diversification [2] - SPTM has an AUM of $11.9 billion, while ITOT has a significantly larger AUM of $79.1 billion, indicating greater liquidity for ITOT [3][9] - Both ETFs have an expense ratio of 0.03% and a dividend yield of 1.1% [4][3] Performance Metrics - The one-year return for SPTM is 15.7%, while ITOT has a slightly higher return of 15.9% [3] - Over five years, SPTM experienced a max drawdown of -24.14%, compared to ITOT's -25.36% [5] - A $1,000 investment in SPTM would have grown to $1,822 over five years, while the same investment in ITOT would have grown to $1,744 [5] Holdings and Sector Allocation - ITOT holds 2,490 stocks, with major sector weights in technology (34%), financial services (13%), and consumer cyclicals (11%), featuring top holdings in Nvidia, Apple, and Microsoft [6] - SPTM, with 1,511 stocks, has a similar sector profile and top holdings but offers less exposure to smaller companies [7][10] Investor Considerations - ITOT is suitable for investors seeking a longer track record and larger AUM, while SPTM may appeal to those preferring a concentration in larger U.S. stocks [11]