Key Points
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Vanguard, State Street (iShares), and Schwab offer three of the best total stock market ETFs.
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The Vanguard Total Stock Market ETF provides slightly broader coverage and better liquidity.
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In reality though, all three are terrific choices and you can’t really go wrong with any of them.
2026’s major rotation away from U.S. tech and toward other stock market sectors should provide a good lesson for investors. Sometimes, it pays to own the whole market instead of trying to pick winners and losers. Sure, you’ll end up owning some underperformers, but you’ll also own the leaders. That makes the entire ride smoother and helps you capture the whole U.S. economic growth story.
Three of the best total U.S. stock market exchange-traded funds (ETFs) share two important traits — they’re ultra-cheap (each has an expense ratio of just 0.03%) and they’re incredibly diversified. That makes them perfect to buy and hold forever.
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A couple examining their financial statements.
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1. Vanguard Total Stock Market ETF
The Vanguard Total Stock Market ETF (NYSEMKT: VTI) is the most diversified of these three ETFs, at least based on the number of securities held. It holds roughly 3,500 individual stocks, comprising nearly the entirety of the investable U.S. stock market.
The 1,000 or so companies that this fund owns that the next two don’t are very small micro-cap stocks. That means that even though there are more companies being held, the difference is negligible to overall performance. This portfolio is market cap-weighted, so we’re talking tiny allocations.
2. iShares Core S&P Total U.S. Stock Market ETF
The iShares Core S&P Total U.S. Stock Market ETF (NYSEMKT: ITOT) takes a similar approach, but holds a comparatively smaller 2,500 stocks. In terms of overall sector and individual weightings, it’s virtually the same as the Vanguard Total Stock Market ETF.
3. Schwab U.S. Broad Market ETF
The Schwab U.S. Broad Market ETF (NYSEMKT: SCHB) is more similar to the iShares Core S&P Total U.S. Stock Market ETF than the Vanguard ETF. It also targets around 2,500 stocks and omits a lot of the micro-caps that iShares ETF also does.
Vanguard vs. iShares vs. Schwab: Which total stock market ETF to choose?
In terms of performance and behavior, the three ETFs will be almost identical. The differences between them are minor enough that you probably wouldn’t even notice them unless you knew they were there.
The most important characteristics of these funds are common to all three. The razor-thin expense ratios mean they cost next to nothing to own. They’re incredibly diversified and own nearly the entire U.S. stock market. They’re highly liquid and highly tradable, which means you also lose next to nothing in terms of trading spreads.
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If you’re looking for maximum diversification, choose Vanguard. If you’re looking for maximum liquidity, Vanguard is probably also the best choice based on sheer size and the number of shares traded daily.
In reality though, all three are terrific choices and you can’t really go wrong with any of them over the long term.
Whether you have just a few hundred dollars to put to work or major capital to invest, all three of these ETFs make for ideal core holdings that you can buy and let grow forever.
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David Dierking has positions in Vanguard Total Stock Market ETF. The Motley Fool has positions in and recommends Vanguard Total Stock Market ETF. The Motley Fool has a disclosure policy.