VTI vs. SPTM: How These Popular Total Stock Market ETFs Compare on Risk, Returns, and Cost

Core Insights - The article compares two low-cost U.S. equity ETFs: State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) and Vanguard Total Stock Market ETF (VTI), highlighting their suitability for long-term investors seeking broad market exposure [1][2] Cost & Size Comparison - Both SPTM and VTI have an identical expense ratio of 0.03% and similar dividend yields, with SPTM at 1.13% and VTI at 1.11% [3] - AUM for SPTM is $12 billion, while VTI has significantly higher AUM at $567 billion, indicating greater liquidity for VTI [3][8] Performance & Risk Analysis - Over a five-year period, $1,000 invested in SPTM would grow to $1,790, while the same investment in VTI would grow to $1,723 [4] - The maximum drawdown for SPTM is -24.15%, compared to -25.36% for VTI, indicating similar risk profiles [4] Portfolio Composition - VTI offers exposure to 3,527 stocks, with a significant allocation of 35% in technology, while SPTM covers 1,511 holdings with 34% in technology [5][6] - Both ETFs have similar top holdings, including Apple, Nvidia, and Microsoft, which together represent around 19% of their assets [5][6] Investor Considerations - The primary differentiators between SPTM and VTI are AUM and the number of holdings, with VTI providing broader diversification due to its larger portfolio [8][9] - Despite VTI's larger number of stocks, both funds have shown comparable returns and risk metrics, making the choice between them more about liquidity and diversification preferences [9]