What is better to buy today vti or itot

The decision between the Vanguard Total Stock Market ETF (VTI) and the iShares Core S&P Total U.S. Stock Market ETF (ITOT) depends on your specific investment goals and preferences. Here's a detailed analysis to help you choose: 1. **Expense Ratio and Cost**: Both ETFs have the same expense ratio of 0.03%, which is a low cost compared to the broader market. This indicates that neither ETF is significantly more expensive than the other, and the cost difference is not a determining factor in this comparison. 2. **Market Exposure and Diversification**: Both ETFs aim to provide exposure to the total U.S. stock market, with VTI tracking the CRSP US Total Market Index and ITOT tracking the S&P Total Market Index. The portfolio compositions of the two ETFs are very similar, with a high correlation in their industry holdings. The top three industries in both portfolios account for 55% of the holdings, indicating a strong alignment in terms of market exposure. 3. **Performance and Risk-Adjusted Metrics**: Over the past 10 years, both ETFs have delivered similar annualized returns, with VTI at 12.34% and ITOT at 12.44%. The year-to-date (YTD) returns as of the latest data are also close, with VTI at 15.65% and ITOT at 15.58%. The risk-adjusted performance metrics, such as the Sharpe ratio, Sortino ratio, and Omega ratio, are also very similar for both ETFs. 4. **Liquidity and Trading**: Both ETFs have high average daily volumes, indicating good liquidity. This is important for executing trades at favorable prices and minimizing slippage. ITOT has slightly lower average daily volume compared to VTI, which could result in slightly higher slippage costs in trading. 5. **Fund Manager and AUM**: Vanguard manages VTI, while BlackRock manages ITOT. VTI has significantly higher Assets Under Management (AUM) than ITOT, which could be indicative of greater investor confidence and market presence. 6. **Tax Efficiency**: Both ETFs are generally more tax-efficient than actively managed funds, as they have lower turnover and fewer tax events. However, there is no significant difference in tax efficiency between the two ETFs. 7. **Dividends and Volatility**: The dividend yields for both ETFs are similar, with VTI at 1.55% and ITOT at 1.54%. The volatility, measured by the daily standard deviation, is also very close, with VTI at 11.46% and ITOT at 11.52%. In conclusion, the choice between VTI and ITOT is primarily a matter of personal preference and investment strategy. Both ETFs offer excellent market exposure, cost efficiency, and performance. If you prefer the larger fund with higher AUM and a slight edge in average return, VTI may be the better choice. If you prefer the slightly lower AUM and the slight edge in the S&P Total Market Index tracking, ITOT could be the better fit.