Comparing iShares Core S&P Total U.S. Stock Market ETF and Vanguard Value ETF
The iShares Core S&P Total U.S. Stock Market ETF (ITOT) offers a broad array of domestic stock exposure, while the Vanguard Value ETF (VTV) focuses on large-cap companies that are typically priced lower than their market peers.
When investors ponder the choice between a comprehensive market exposure and a more targeted investment strategy, they often consider the balance between potential growth and price stability. These two funds represent distinct investment philosophies, with one capturing the entire range of U.S. stocks and the other targeting undervalued stocks.
Snapshots (cost and size)
| Metric | VTV | ITOT |
|---|---|---|
| Publisher | Vanguard | iShares |
| Expense Ratio | 0.03% | 0.03% |
| 1 Year Return (as of June 3, 2026) | 26.41% | 25.86% |
| Dividend Yield | 1.80% | 1.00% |
| Assets | $238 billion | $93.5 billion |
Beta indicates the price volatility compared to the S&P 500, calculated from five years of monthly returns. Dividend yield refers to the trailing 12-month distribution yield.
Both funds boast low expense ratios of 0.03%. However, for those seeking income, Vanguard’s dividend yield of 1.80% may be more appealing compared to iShares’ 1.00%.
Comparing Performance and Risk
| Metric | VTV | ITOT |
|---|---|---|
| Maximum Drawdown (5 years) | (17.00%) | (25.40%) |
| $1,000 Growth in 5 Years (Total Return) | $1,703 | $1,817 |
Looking back at historical performance, a total market approach often yields higher returns during market upswings, but value-based strategies typically show different risk behaviors. The data highlights the variances in growth and maximum declines over the last five years.
What’s Inside
The iShares Core S&P Total U.S. Stock Market ETF aims to track a wide range of market outcomes, currently holding 2,498 publicly traded stocks. A significant portion (34%) is in technology, followed by 12% in financial services and 10% in communications. Its top positions include: Nvidia at 7.13%, Apple at 6.23%, and Microsoft at 4.34%. Since its inception in 2004, it has distributed $1.61 per share over the last 12 months.
On the other hand, the Vanguard Value ETF narrows its focus to 331 stocks chosen based on value metrics. Its allocations include 22% in financial services, 14% in healthcare, and another 14% in industrials. Major individual holdings are: JPMorgan Chase & Co. at 3.11%, Berkshire Hathaway at 2.87%, and Exxon Mobil at 2.51%. The Vanguard Fund has also been providing a trailing dividend of $3.97 per share since 2004.
What This Means for Investors
The iShares Core S&P Total U.S. Stock Market ETF (ITOT) and the Vanguard Value ETF (VTV) present different investing strategies in the U.S. market. Both have low expense ratios, so the choice largely depends on what the investor is aiming for.
VTV is all about finding value in large-cap stocks, which means it has a smaller asset base compared to ITOT. Still, the appeal lies in the potential for significant gains, as demonstrated by its strong one-year return and higher dividend yield which attracts income-focused investors.
In contrast, ITOT provides a more diversified view of U.S. stocks across various capitalizations and industries, shielding your portfolio from sector-specific declines. By including mid-cap and small-cap stocks, ITOT allows for greater appreciation potential from smaller firms, making it a solid foundation for those just beginning to invest or desiring total exposure to the U.S. stock market.
