2 months ago
VTI's dual share class nearly eliminates capital gains distributions, giving it a compounding tax advantage over ITOT and SCHB in taxable brokerage accounts.
SCHB's Schwab fractional-share access puts every automated contribution dollar to work immediately, a platform-specific edge VTI and ITOT cannot match inside Schwab.
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Three total market index ETFs dominate the do-it-yourself investor's shortlist for whole-market US equity exposure: Vanguard Total Stock Market ETF (NYSEARCA:VTI), iShares Core S&P Total U.S. Stock Market ETF (NYSEARCA:ITOT), and Schwab U.S. Broad Market ETF (NYSEARCA:SCHB). All three charge 0.03% in annual expenses, hold thousands of US stocks, and post nearly identical trailing returns.
The one-year numbers cluster tightly: VTI at around 21%, ITOT at roughly 21%, and SCHB at about 21%. Over a 30-year holding period, small structural differences in index depth, tax treatment, and ecosystem fit start to matter, and picking the wrong container for the same underlying market can quietly cost meaningful compounded dollars.
#itot #schb #Share
SCHB's Schwab fractional-share access puts every automated contribution dollar to work immediately, a platform-specific edge VTI and ITOT cannot match inside Schwab.
Don't wait: the **** yst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Three total market index ETFs dominate the do-it-yourself investor's shortlist for whole-market US equity exposure: Vanguard Total Stock Market ETF (NYSEARCA:VTI), iShares Core S&P Total U.S. Stock Market ETF (NYSEARCA:ITOT), and Schwab U.S. Broad Market ETF (NYSEARCA:SCHB). All three charge 0.03% in annual expenses, hold thousands of US stocks, and post nearly identical trailing returns.
The one-year numbers cluster tightly: VTI at around 21%, ITOT at roughly 21%, and SCHB at about 21%. Over a 30-year holding period, small structural differences in index depth, tax treatment, and ecosystem fit start to matter, and picking the wrong container for the same underlying market can quietly cost meaningful compounded dollars.
#itot #schb #Share
3 months ago
July 1 (Reuters) - The U.S. Treasury has selected two BlackRock exchange-traded funds for Trump Accounts and named Vanguard as an alternate fund partner for the government's new child savings program, which is set to launch on July 4.
BlackRock's iShares Core S&P 500 ETF (IVV) and iShares Core S&P Total U.S. Stock Market ETF (ITOT) were chosen, both carrying expense ratios of 0.03%. Vanguard Total Stock Market ETF (VTI) was named an alternate investment option.
"By giving younger Americans the opportunity to start investing earlier, Trump Accounts can help millions build long-term financial security," said BlackRock Chairman and CEO Larry Fink.
Under the scheme, the U.S. Treasury will deposit $1,000 as seed money into an investment account for each child with a valid Social Security number born between 2025 and 2028.
Many investment firms and corporations, including BlackRock, said they would match the U.S. government's $1,000 contribution for their employees.
BlackRock's iShares Core S&P 500 ETF (IVV) and iShares Core S&P Total U.S. Stock Market ETF (ITOT) were chosen, both carrying expense ratios of 0.03%. Vanguard Total Stock Market ETF (VTI) was named an alternate investment option.
"By giving younger Americans the opportunity to start investing earlier, Trump Accounts can help millions build long-term financial security," said BlackRock Chairman and CEO Larry Fink.
Under the scheme, the U.S. Treasury will deposit $1,000 as seed money into an investment account for each child with a valid Social Security number born between 2025 and 2028.
Many investment firms and corporations, including BlackRock, said they would match the U.S. government's $1,000 contribution for their employees.
3 months ago
With Trump Accounts set to officially launch on July 4, the US Treasury Department is detailing where the money in those accounts will be invested.
At launch, all funds in a Trump Account will be automatically invested in the State Street SPDR Portfolio S&P 500 ETF (SPYM), which tracks the performance of the S&P 500 index. That includes contributions by parents and others to the child's account.
That fund was selected as the default investment because it is the lowest-cost S&P 500 ETF, according to the Treasury Department, with an expense ratio of only 2 basis points, while also offering broad exposure to the US stock market. Key to the Treasury's selection of funds was that the vehicles were the lowest cost for the public.
Other low-cost index ETFs eligible for Trump accounts include iShares Core S&P 500 ETF (IVV), Vanguard Total Stock Market ETF (VTI), State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM), and iShares Core S&P Total US Stock Market ETF (ITOT).
In the coming months, the Treasury Department says parents will be able to choose how to allocate funds across other investment options. Until then, all contributions will be invested by default in the State Street fund.
At launch, all funds in a Trump Account will be automatically invested in the State Street SPDR Portfolio S&P 500 ETF (SPYM), which tracks the performance of the S&P 500 index. That includes contributions by parents and others to the child's account.
That fund was selected as the default investment because it is the lowest-cost S&P 500 ETF, according to the Treasury Department, with an expense ratio of only 2 basis points, while also offering broad exposure to the US stock market. Key to the Treasury's selection of funds was that the vehicles were the lowest cost for the public.
Other low-cost index ETFs eligible for Trump accounts include iShares Core S&P 500 ETF (IVV), Vanguard Total Stock Market ETF (VTI), State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM), and iShares Core S&P Total US Stock Market ETF (ITOT).
In the coming months, the Treasury Department says parents will be able to choose how to allocate funds across other investment options. Until then, all contributions will be invested by default in the State Street fund.
