The Broader Implications of Two Nearly Identical Funds The investment landscape features numerous examples of identical twins – funds that track the same index, have similar expense ratios, and offer diversified exposure to thousands of companies.
The iShares Core S&P Total U. S. Stock Market ETF (ITOT) and Schwab U. S. Broad Market ETF (SCHB) are two such siblings, raising questions about the nature of choice in investment products.
At a glance, both funds appear nearly indistinguishable due to tracking slightly different indices, resulting in mirrored performance.