SA #7: ITOT Vs. VTI – Since 2015 Very Similar, But VTI Still Ahead

ITOT Vs. VTI: Since 2015 Very Similar, But VTI Still Ahead
January 13, 2023


  • The iShares Core S&P Total U.S. Stock Market ETF (ITOT) and Vanguard Total Stock Market ETF (VTI) are among the largest ETFs to invest passively in the US equity market.
  • For the longest common period since 2004, ITOT underperformed VTI by about 20%-points or slightly more than 20 basis points per year.
  • However, just looking at this long-term performance chart is somewhat misleading here. Because of several changes, the two funds tracked 5 different indices over the last 15 years.
  • Starting in December 2015, ITOT switched from the S&P 1500 to the S&P Total Market Index which made the two ETFs mostly comparable. The performance gap to VTI also narrowed.
  • The analysis shows that even passive investors should not only compare ETFs by their historical performance but also pay close attention to the underlying indices, and even more important, index/benchmark changes.
Read the Full Article on Seeking Alpha

This content is for educational and informational purposes only and no substitute for professional or financial advice. The use of any information on this website is solely on your own risk and I do not take responsibility or liability for any damages that may occur. The views expressed on this website are solely my own and do not necessarily reflect the views of any organisation I am associated with. Income- or benefit-generating links are marked with a star (*). All content that is not my intellectual property is marked as such. If you own the intellectual property displayed on this website and do not agree with my use of it, please send me an e-mail and I will remedy the situation immediately. Please also read the Disclaimer.