SCHB vs. SPTM: Which Total Stock Market ETF Is the Better Buy for Investors?

Core Insights - The State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) and the Schwab U.S. Broad Market ETF (SCHB) are both designed to mirror the performance of the broad U.S. stock market with minimal fees, making them suitable for core holdings in diversified portfolios [1][2] Cost and Size Comparison - Both SPTM and SCHB have an expense ratio of 0.03%, which is among the lowest in the industry [3] - As of January 25, 2026, SPTM has a 1-year return of 12.91% and SCHB has a return of 12.80% [3] - The assets under management (AUM) for SPTM is $12 billion, while SCHB has a significantly larger AUM of $38 billion [3] Performance and Risk Comparison - The maximum drawdown over 5 years for SPTM is -24.15%, while SCHB has a slightly higher drawdown of -25.40% [4] - An investment of $1,000 would grow to $1,765 in SPTM and $1,700 in SCHB over 5 years [4] Portfolio Composition - SCHB tracks the Dow Jones U.S. Broad Stock Market Index and holds 2,401 stocks, with sector allocations of 33% technology, 13% financial services, and 11% consumer cyclical [5] - SPTM follows the S&P Composite 1500 Index, providing exposure to approximately 1,510 stocks, with similar sector allocations and top holdings as SCHB [6] Implications for Investors - Both ETFs offer similar low expense ratios and dividend yields, making them comparable in terms of fees and income [7] - The top three holdings in both funds are Nvidia, Apple, and Microsoft, comprising 18.35% of SCHB's portfolio and 19.79% of SPTM's [7] - SCHB's larger AUM and number of holdings (nearly 1,000 more than SPTM) may provide greater liquidity and broader market exposure for investors [8][9]