Looking at their performances, both SCHB and VTI have generated an average annualized return of 17.1%. Additionally, both funds have lagged their respective indices by an amount less than fees since inception – most ETFs may show some tracking errors due to expenses, so a lower fee typically helps ETFs more closely follow their benchmarks.
VTI, though, is more actively traded and is the bigger fund. The ETF has $57.1 billion in assets under management and shows a 2.6 million average daily volume. SCHB, on the other hand has $5.1 billion in assets and has a 471,000 average daily volume.
No matter which ETF investors ultimately choose, the two broad stock ETFs offer long-term investors a cheap and solid core investment position. Either stock ETF can serve as a good foundation to a diversified investment portfolio.
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.