Vanguard and Schwab ETFs: A Closer Look at Investment Options

NEW YORK, NY — Investors are continuing to favor widely diversified exchange-traded funds (ETFs) as core holdings in their portfolios. Among the most popular options are the Vanguard Total Stock Market ETF (VTI) and the Schwab U.S. Broad Market ETF (SCHB), both designed to offer exposure to the American stock market at minimal costs.

As of November 17, 2025, VTI boasts an astonishing $2.02 trillion in assets under management and maintains a low expense ratio of just 0.03%. In comparison, SCHB, while also keeping the 0.03% expense ratio, has about $37.35 billion in AUM. Both funds track extensive arrays of U.S. companies, with VTI covering nearly 4,000 stocks and SCHB around 2,500.

Both funds aim to mirror the stock market’s performance rather than outperform it. With similar top holdings, including technology giants like Nvidia and Microsoft, their historical performances closely align, often making them interchangeable for long-term investors.

While both funds have identical expense ratios, certain metrics can influence investor preference. For instance, VTI has a broader selection of holdings, which some argue offers more diversification. However, given that these smaller stocks largely comprise a small percentage of total market capitalization, the practical difference can be minimal for most retail investors.

Another element to consider is liquidity. VTI’s significant assets under management provide tighter bid-ask spreads, which may benefit institutional investors or those executing large orders. In contrast, SCHB might appeal more to individual investors, particularly those trading within Schwab’s brokerage ecosystem, which traditionally offered commission-free trading on this ETF.

Overall, both ETFs present excellent options for investors looking for low-cost, diversified strategies. Their rising popularity reflects ongoing trends in passive investing, which emphasizes cost-efficiency and minimal management intervention. Understanding the subtle differences between these funds facilitates informed decision-making for investors focusing on long-term portfolio growth.

As the low-cost investment landscape continues to evolve, both VTI and SCHB stand out as trusted vehicles for broad U.S. exposure, making them foundational components for many investors’ portfolios.