Wealthy PotSWTSX vs VTI: Same 0.03% Fee, About 94% Overlap, and the Real Choice Is Mutual Fund or ETF
SWTSX and VTI both own the whole US stock market for 0.03% a year, and neither has a minimum. SWTSX is Schwab's Total Stock Market Index Fund, a mutual fund. VTI is Vanguard's Total Stock Market ETF. In their latest SEC holdings filings, 99.4% of SWTSX's money and 99.5% of VTI's sat in stocks the other also held, an overlap of 94.1%. Over the ten years to 31 December 2025 the two prospectuses show 14.18% a year for SWTSX and 14.25% for VTI. The portfolios are interchangeable. What differs is how you buy them: SWTSX is priced once a day in exact dollar amounts, VTI trades on an exchange all day. Choose by account and habit, then hold one.
Table of Contents
The Short Answer
- Fees: a tie at 0.03%. Both prospectuses print the same cost example: $3 after one year and $39 after ten on $10,000.
- Minimums: none on either. SWTSX's prospectus says "There is no minimum initial investment for the fund." VTI's prospectus sets no minimum either; your broker decides whether you can buy fractions of a share.
- Overlap: 94.1%. Our calculation from the funds' N-PORT filings for 31 July 2026 (SWTSX) and 30 June 2026 (VTI).
- Ten-year return to 31 December 2025: VTI 14.25%, SWTSX 14.18% a year. The gap was 0.07 of a point, from each fund's prospectus.
- Holdings: 2,885 vs 3,507 on the issuers' pages as of 31 August 2026. VTI samples a broader index; SWTSX expects to hold the largest 2,000 to 2,800 US stocks.
- Tax drag: the same. Ten years of after-tax figures show 0.48 of a point lost to taxes on distributions for SWTSX and 0.47 for VTI.
- Do not hold both. They are the same market twice.
How Much SWTSX and VTI Overlap
The two funds track different indexes that measure the same thing. SWTSX's goal, in Schwab's words, is "to track the total return of the entire U.S. stock market, as measured by the Dow Jones U.S. Total Stock Market Index." VTI tracks the index Vanguard's prospectus calls the CRSP US Total Market Index, renamed the Morningstar US Total Market Index on 29 July 2026 after Morningstar bought CRSP. Vanguard's supplement says the fund's objective and strategy did not change.
| SEC portfolio filings | SWTSX (31 Jul 2026) | VTI's fund (30 Jun 2026) |
|---|---|---|
| Holdings in our dataset | 2,850 | 3,159 |
| Held by both funds | 2,768 | 2,768 |
| Share of the fund in those shared holdings | 99.4% | 99.5% |
| Holdings the other fund did not own | 82 (0.36% of SWTSX) | 391 (0.26% of VTI) |
| Overlap, sum of the smaller weight in each shared stock | 94.1% | |
Why it is not 99%. The filings are a month apart, so weights differ with prices: Microsoft was 4.75% of SWTSX on 31 July and 3.83% of VTI on 30 June. Taking the smaller weight of each shared stock turns those price moves into a lower overlap number. The positions only one fund held were tiny: 0.36% of SWTSX and 0.26% of VTI.
Run the pair yourself in the Portfolio Overlap Checker.
SWTSX vs VTI Side by Side
| SWTSX | VTI | |
|---|---|---|
| Full name | Schwab Total Stock Market Index Fund | Vanguard Total Stock Market ETF (since 29 Jul 2026: Vanguard Morningstar Total Stock Market ETF) |
| Structure | Mutual fund | ETF share class of a larger fund |
| Index | Dow Jones U.S. Total Stock Market Index | Morningstar US Total Market Index (formerly CRSP) |
| Expense ratio | 0.03% | 0.03% |
| Prospectus cost on $10,000 over 10 years | $39 | $39 |
| Minimum | None | None set by the fund; fractional shares depend on your broker |
| Holdings (31 Aug 2026) | 2,885 | 3,507 |
| Net assets | $45.5 billion (2 Oct 2026) | $689.2 billion ETF class; $2.3 trillion whole fund (31 Aug 2026) |
| Portfolio turnover | 3.43% (31 Aug 2026) | 2.6% (fiscal 2025) |
| 10-year return to 31 Dec 2025 | 14.18% | 14.25% (NAV) |
| Inception | 1 Jun 1999 | 24 May 2001 |
| How you trade it | Once a day at the closing NAV | On an exchange, all day, at market price |
Both index providers agree on the result. Schwab's prospectus shows the Dow Jones U.S. Total Stock Market Index at 17.05%, 13.07% and 14.21% over one, five and ten years to 31 December 2025. Vanguard's VTI prospectus prints the float-adjusted version of the same Dow Jones index as a comparison and shows the same three numbers. VTI's own CRSP index returned 14.25% over the decade. Two indexes, nearly identical outcomes.
Returns: A Few Hundredths Apart
| Average annual return to 31 Dec 2025 | 1 year | 5 years | 10 years |
|---|---|---|---|
| SWTSX, before taxes | 17.06% | 13.06% | 14.18% |
| VTI (NAV), before taxes | 17.14% | 13.08% | 14.25% |
| SWTSX, after taxes on distributions | 16.74% | 12.68% | 13.70% |
| VTI, after taxes on distributions | 16.79% | 12.69% | 13.78% |
| VTI minus SWTSX, before taxes | +0.08 | +0.02 | +0.07 |
More recent figures say the same thing. To 31 August 2026, Schwab's page shows SWTSX at 20.09%, 20.63%, 11.68% and 14.75% a year over one, three, five and ten years at NAV. Vanguard's page, as we read it on 29 September 2026, showed VTI at 20.24%, 20.65%, 11.71% and 14.81% for the same date. The ten-year gap was 0.06 of a point. Vanguard has since moved its page to 30 September; Schwab had not posted that month when we checked.
| Hypothetical $10,000 held 10 years | Ending value |
|---|---|
| At SWTSX's 10-year NAV return to 31 Aug 2026 (14.75%) | $39,585 |
| At VTI's 10-year NAV return to 31 Aug 2026 (14.81%) | $39,792 |
This is educational information, not personalized investment advice. Past performance does not guarantee future results, and all investing carries the risk of loss.
Where They Really Differ
1. How you buy and sell. SWTSX is a mutual fund: you place an order in dollars, and it fills once a day at that day's closing NAV. That makes it easy to invest exactly $250 a month automatically. VTI is an ETF: it trades during market hours at whatever price buyers and sellers agree on, which can sit slightly above or below the value of its holdings. Whether you can buy a fraction of a share depends on your broker.
2. Where you can hold it. SWTSX's prospectus says investors "may only invest in the fund through an account at Charles Schwab & Co., Inc. (Schwab) or another financial intermediary." It is built for Schwab accounts; at other brokers it may not be offered, or may carry a transaction fee, so check before you plan around it. VTI is listed on an exchange, so almost any brokerage account can buy it.
3. Taxes in a taxable account. The prospectus after-tax figures show the same 0.47 to 0.48 of a point drag for both over ten years, so history does not separate them. Schwab's distribution history for SWTSX shows one payout a year, in December, with no capital gains distributed in 2022, 2023, 2024 or 2025. An ETF can usually hand departing investors stocks instead of cash, which helps it avoid realizing gains. A mutual fund like SWTSX has to sell stocks for cash when redemptions outrun new money, so a year of heavy selling could force a gain distribution. On the record so far, that difference has not shown up here.
4. Size and breadth. VTI's parent fund held $2.3 trillion on 31 August 2026 against $45.5 billion for SWTSX, and VTI held more stocks, 3,507 against 2,885. VTI's extra holdings are small positions; everything VTI held that SWTSX did not came to 0.26% of VTI. They do not change the result in any measurable way.
Which One Fits You
Investing at Schwab with automatic monthly contributions: SWTSX. No minimum, exact dollar amounts, no share prices to think about. If you want only the large caps, Schwab's S&P 500 fund is compared in SWPPX vs SWTSX.
Investing anywhere else, or you might change brokers: VTI. It goes wherever your account goes. If you are at Schwab but prefer an ETF, Schwab's own total-market ETF is SCHB, which charges the same 0.03%.
In a 401(k) or IRA: use whichever your plan or broker offers; taxes do not separate them there.
In a taxable account: either works on the record so far, and VTI has the ETF structure as extra protection. If you already own SWTSX with gains, selling to switch creates a tax bill for a problem its distribution history has not shown. Redirect new money instead, and check your 2026 tax bracket before selling.
Already own both? Consolidate when it costs nothing, such as inside an IRA. Other providers' versions: VTSAX vs VTI, ITOT vs VTI.
Sources & Methodology
- SWTSX summary prospectus, 26 February 2026: objective, fee table, cost example, minimum, sampling strategy, turnover, best and worst quarters, and returns to 31 December 2025.
- VTI summary prospectus, 28 April 2026: the same items for the ETF share class.
- Vanguard supplement, 29 July 2026: the CRSP to Morningstar fund and index renaming.
- SWTSX Form N-PORT, 31 July 2026 and Vanguard Total Stock Market Index Fund Form N-PORT, 30 June 2026: the holdings behind the overlap figures.
- Schwab SWTSX fund page and Vanguard VTI page: holdings, net assets, turnover, distributions and recent returns.
How the overlap was computed. For each stock held by both funds we took the smaller of its two weights and added them up, the same method the Portfolio Overlap Checker uses on the same N-PORT data. The filings are a month apart, an effect explained above.
What we did not verify. VTI's returns to 31 August 2026 come from our reading of Vanguard's page on 29 September 2026; by 5 October Vanguard showed 30 September figures instead. Schwab's page does not show an SEC yield for SWTSX, so we have not compared yields. We did not check other brokers' fees for buying SWTSX, or sector weights.
This article is for general education and is not investment, tax or legal advice. Past performance does not guarantee future results, and all investing carries the risk of loss. Figures were checked against the sources above on 5 October 2026; fund data changes daily, so confirm current figures with Schwab and Vanguard before acting.
FAQ: SWTSX vs VTI
Is SWTSX the same as VTI?
Nearly, in what they own. Both hold the whole US stock market for 0.03%, and their ten-year returns to 31 December 2025 were 0.07 of a point apart. SWTSX is a Schwab mutual fund tracking a Dow Jones index; VTI is a Vanguard ETF tracking the Morningstar (formerly CRSP) index.
How much do SWTSX and VTI overlap?
About 94% by weight: our tool shows 94.1% from the funds' July and June 2026 filings. About 99.4% of SWTSX and 99.5% of VTI sit in stocks the other holds.
Does SWTSX have a minimum investment?
No. The prospectus says "There is no minimum initial investment for the fund," and Schwab's page lists "No Minimum."
Can I buy SWTSX outside Schwab?
The prospectus allows purchases through Schwab or "another financial intermediary," but availability and fees elsewhere vary. Check your broker. VTI trades on an exchange and is available almost everywhere.
Which is more tax-efficient, SWTSX or VTI?
On the record, they are level: ten-year after-tax drag of 0.48 of a point for SWTSX and 0.47 for VTI in the prospectuses, and no SWTSX capital gains distributions from 2022 to 2025. VTI's ETF structure gives it an extra tool to avoid capital gains if that ever changes. Inside an IRA or 401(k) it does not matter.
Should I switch from SWTSX to VTI?
Not to gain anything in returns or fees; there is nothing to gain. Switching can make sense if you are leaving Schwab, and inside an IRA it costs no tax. In a taxable account, selling may realize gains.
Cite This Page
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"SWTSX vs VTI: Same 0.03% Fee, About 94% Overlap, and the Real Choice Is Mutual Fund or ETF." Wealthy Pot, 2026. https://wealthypot.com/swtsx-vs-vti/
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