SPDR's SPTM Offers Broad Market Reach, While Vanguard's VTV Targets Value Stocks. Which Is the Better Buy?

Core Viewpoint - The Vanguard Value ETF (VTV) and the State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) serve different investment strategies, with VTV focusing on large-cap value stocks and SPTM providing broader market exposure across various market capitalizations [2][9]. Cost & Size - VTV has an expense ratio of 0.04% and assets under management (AUM) of $218 billion, while SPTM has a slightly lower expense ratio of 0.03% and AUM of $12 billion [3][4]. - The one-year return for VTV is 11.48%, compared to SPTM's 12.91%, and VTV offers a higher dividend yield of 2.05% versus SPTM's 1.13% [3][4]. Performance & Risk Comparison - Over the past five years, VTV has a maximum drawdown of -17.03%, while SPTM has a higher drawdown of -24.15% [5]. - An investment of $1,000 in VTV would grow to $1,622 over five years, whereas the same investment in SPTM would grow to $1,765 [5]. Portfolio Composition - SPTM tracks a broad U.S. equity index with 1,510 stocks, heavily weighted towards technology (34%), followed by financial services (13%) and consumer cyclical (11%) [6]. - VTV focuses on 312 large-cap value stocks, with significant sector exposure in financial services (25%), healthcare (16%), and industrials (13%) [7]. Investment Implications - SPTM offers broader market exposure and includes stocks from various sectors and sizes, making it suitable for investors seeking overall market performance [9]. - VTV targets large-cap value stocks, which may provide more stability and higher dividend income potential, appealing to income-focused investors [10].