Better Broad-Market ETF: Schwab's SCHB vs. iShares' ITOT

Core Insights - The Schwab U.S. Broad Market ETF (SCHB) and iShares Core S&P Total U.S. Stock Market ETF (ITOT) are both low-cost, ultra-diversified U.S. equity ETFs with nearly identical performance metrics and sector allocations, but ITOT has a larger asset base and higher trading volume [2][4][8] Cost and Size - Both SCHB and ITOT have an expense ratio of 0.03% and a dividend yield of 1.1%, making them comparable in terms of fees and payouts [5] - As of late 2025, SCHB has $38.3 billion in assets under management (AUM), while ITOT has $80.4 billion, indicating ITOT's larger market presence [4][8] Performance and Risk Comparison - Over a five-year period, both ETFs experienced a maximum drawdown of -25.36%, demonstrating similar risk profiles [6] - A $1,000 investment in SCHB would have grown to $1,758, while the same investment in ITOT would have grown to $1,752, reflecting nearly identical performance [6] Portfolio Composition - ITOT holds 2,498 stocks, with sector allocations of 33% in technology, 13% in financial services, and 10% in consumer cyclical, featuring top positions in Nvidia (6.91%), Apple (6.03%), and Microsoft (5.41%) [7] - SCHB has 2,408 holdings with similar sector allocations: 34% in technology, 13% in financial services, and 10% in consumer cyclical, with comparable top positions in Nvidia, Apple, and Microsoft [8]