Deciding between the Vanguard Value ETF (NYSEMKT:VTV) and the Schwab U.S. Broad Market ETF (NYSEMKT:SCHB)involves a choice between broad-market exposure and a targeted value strategy.

SCHB offers a “catch-all” approach to the U.S. economy, capturing everything from massive tech giants to small-cap players. Conversely, VTV homes in on large companies that appear undervalued relative to their fundamentals.

For many investors, these ETFs serve as foundational core building blocks that prioritize low costs and high liquidity. Here’s how they stack up.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

Both funds are exceptionally cost-efficient, featuring identical 0.03% expense ratios. This rock-bottom pricing means investors pay just $3 annually for every $10,000 invested. However, income seekers may favor VTV, which provides a significantly higher trailing-12-month dividend yield.

Performance & risk comparison

What’s inside

SCHB offers broad diversification across 2,410 holdings, including large-, mid-, and small-cap stocks. Its sector allocation is heavily weighted toward technology at 37% of assets, followed by financial services. Its largest positions include Nvidia, Apple, and Microsoft.

VTV is more concentrated, holding 309 stocks selected for their value characteristics. Its top sector is financial services, accounting for just over 20% of assets, followed by technology. Its top holdings include Micron Technology, JPMorgan Chase, and Berkshire Hathaway.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investors

VTV and SCHB both offer risk protection, but in different packages. SCHB takes a diversification approach, providing broad exposure to the U.S. equity market.

With access to stocks of all sizes across all industries, it’s tough to find a fund more diversified than SCHB. This can help limit some of the impact of volatility, because if a few stocks within the fund falter, there are plenty of others to prop it up.

VTV is much narrower, with just a fraction of SCHB’s holdings. However, its focus specifically on value stocks makes it a stable, consistent investment, as value stocks tend to be from established companies with a healthy track record of success.