Investing in the Entire U.S. Market: VTI vs. ITOT vs. SCHB
Investing in the Entire U.S. Market: VTI vs. ITOT vs. SCHB
When it comes to investing in the U.S. stock market, most people think of the S&P 500 or the Nasdaq 100. But what if you want to invest in the entire U.S. stock market—large caps, mid caps, small caps, and everything in between? That’s where total market ETFs come in. In this article, we’ll compare three of the most popular options: VTI, ITOT, and SCHB.
Table of Contents
- Quick Comparison Table
- What Is a Total Market ETF?
- Differences Between VTI, ITOT, and SCHB
- Performance Overview
- Dividend Yield and Tax Efficiency
- Which One Should You Choose?
- Summary
Quick Comparison Table
| ETF | Issuer | Expense Ratio | # of Holdings | Dividend Yield | Inception Year |
|---|---|---|---|---|---|
| VTI | Vanguard | 0.03% | ~3,900 | ~1.5% | 2001 |
| ITOT | iShares | 0.03% | ~3,700 | ~1.4% | 2004 |
| SCHB | Schwab | 0.03% | ~2,500 | ~1.4% | 2009 |
What Is a Total Market ETF?
A total market ETF is designed to give you exposure to the entire U.S. equity market, from the giants like Apple and Microsoft to small-cap growth companies. These funds are ideal for investors seeking maximum diversification with minimal complexity.
Differences Between VTI, ITOT, and SCHB
VTI – Vanguard Total Stock Market ETF
- Tracks the CRSP U.S. Total Market Index
- ~3,900 holdings, including large-, mid-, small-, and micro-cap stocks
- Extremely liquid and widely used by long-term investors
ITOT – iShares Core S&P Total U.S. Stock Market ETF
- Tracks the S&P Total Market Index
- Similar composition to VTI but slightly fewer holdings
- Often used in BlackRock-managed portfolios
SCHB – Schwab U.S. Broad Market ETF
- Tracks the Dow Jones U.S. Broad Stock Market Index
- Fewer holdings than VTI or ITOT but still represents 95%+ of the U.S. market cap
- Strong pick for Schwab account holders due to zero trading fees on its platform
Performance Overview
All three ETFs have shown very similar long-term performance due to their broad exposure:
- 5-Year CAGR: ~11–12% (as of 2025)
- Volatility: Comparable across all three
Past performance does not guarantee future results.
Dividend Yield and Tax Efficiency
While these ETFs are not focused on high dividend yields, they still provide modest income. VTI has historically had a slightly higher dividend yield, but the difference is negligible. All three ETFs are structured efficiently for tax-conscious investors.
Which One Should You Choose?
If you're already using:
- Vanguard → VTI is the natural choice
- Fidelity or general brokerages → ITOT is a solid, flexible option
- Schwab → SCHB works best with integrated fee benefits
At the end of the day, you really can't go wrong with any of them. The key difference may come down to your broker or minor personal preferences.
Summary
- Total market ETFs are a great way to invest in the entire U.S. economy.
- VTI, ITOT, and SCHB all offer low fees, diversification, and competitive returns.
- Choose based on your brokerage, platform fees, or brand preference—not performance.
If you're building a long-term portfolio, these ETFs can serve as a strong core holding.
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