VTI vs. SWTSX: How Do They Compare (2023)

VTI and SWTSX are both total stock market index funds. VTI is an ETF while SWTSX is a mutual fund.

Find out which of these funds has performed better in the past and what their key differences are.

FundsVanguard Total Stock Market Index Fund ETFSchwab Total Stock Market Index Fund
3-year total return+11.75%+11.68%
3-year standard deviation20.10%20.13%
Morningstar rating4/53/5
Net expense ratio0.03%0.03%
Total net assets261.51bn USD16.27bn USD
Morningstar categoryLarge BlendLarge Blend

VTI: Vanguard Total Stock Market Index Fund ETF

VTI is an exchange-traded fund that tracks the CRSP US Total Market Index. It’s the most widely used index for measuring total stock market performance.

This means you can purchase VTI shares and be exposed to approximately 3,800 publicly-traded companies from both large-cap and small-cap stocks. 

The fund consists of all U.S domestic stocks, including large caps like Apple, Microsoft, Exxon Mobil, etc., and small caps like Capital One Financial (COF) and Yelp(YELP).

SWTSX: Schwab Total Stock Market Index Fund

Charles Schwab is a good place to start your investing journey. The Schwab Total Stock Market Index Fund (SWTSX) is just one example.

SWTSX is a low-cost index fund that has consistently outperformed most actively managed mutual funds over time.

VTI vs SWTSX: Key differences

The key difference between VTI and SWTSX is that VTI is an ETF (exchange-traded fund) while SWTSX is a mutual fund.

With a mutual fund, investors get the benefit of buying the fund in dollar amounts rather than in shares. If you don’t have enough money to buy one share of an ETF, you can invest that money into a mutual fund and own a partial amount.

An ETF like VTI has its benefits. You can trade ETFs like you usually would with stocks. You can buy and sell them during trading hours. In contrast, mutual funds can only be bought and sold once per day, after the market close.

In terms of the expense ratio and annual returns, investors can expect VTI and SWTSX to show similar results. Because of their identical holdings and investment objective, we found no significant difference that would affect their performance.

VTI vs SWTSX: Which Total Stock Market Index Fund Is Better?

VTI and SWTSX are great options for investors looking to diversify their portfolios. Both have an expense ratio of 0.03%, which is lower than the average for most ETFs and mutual funds.

In this case, you do not need to own these two simultaneously. Just pick one and go with it.

Our favorite: VTI

Diego, a seasoned financial analyst in New York, brings a decade of expertise to guiding financial decisions. As a blogger for UseFidelity.com, he simplifies finance, offering insights on Fidelity Investments. Beyond numbers, he explores NYC's culture and enjoys capturing moments through his photography.

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