Here we look at 2 ETFs for the total U.S. stock market – ITOT and VTI – from iShares and Vanguard, respectively.

// TIMESTAMPS:

00:00 - Intro
00:07 - ITOT vs. VTI - Methodology and Composition
01:19 - Historical Performance
01:28 - Conclusion

// SUMMARY:

If you’ve arrived on this video, you probably already know that index funds are a great way to get instant diversification across sectors and cap sizes. Thankfully, fees have also dropped in recent years to make ETFs extremely affordable for retail investors.

ITOT is the iShares Core S&P Total U.S. Stock Market ETF. It is the second most popular fund to capture the total U.S. stock market, after VTI. It was established in 2004. The fund seeks to track the famous S&P Total Market Index. ITOT has over $42 billion in assets and has a little over 3,500 holdings.

The Vanguard Total Stock Market ETF (VTI) provides similar broad exposure to the U.S. stock market. It launched in 2001. The fund seeks to track the CRSP US Total Market Index. This ETF holds about 3,800 U.S. stocks. VTI is more popular than ITOT with over $260 billion in assets.

Both of these funds are highly liquid, with an average spread of 0.01%. Sector composition is nearly identical. They also cost the same at 0.03%, and can thus be seen as interchangeable.

The indexes for these two funds differ very slightly. Basically, VTI gets marginally more exposure to small- and mid-caps, which likely explains its very slight historical outperformance over ITOT.

Again, ITOT and VTI are basically interchangeable. This is definitely a great pair to use for tax loss harvesting purposes to avoid a wash sale, but given the choice of one over the other, I see no reason not to go with VTI from Vanguard. It has more assets and has, in my opinion, a bit more preferable exposure to smaller stocks.

Read the blog post here: https://www.optimizedportfolio.com/itot-vs-vti/

#investing #stocks #stockmarket #etfs

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