Is TransUnion Legit?

The short answer is: yes, TransUnion is a legitimate company. Many people ask “Is TransUnion legit” because they received unexpected mail or communications from TransUnion. These mailings are often result of company experiencing a data breach and hiring TransUnion to contact affected people. TransUnion may also contact you if there was an event on your credit report, such as opening a credit card or applying for loan.

TransUnion Is Legit

Fortunately, my research indicates that TransUnion is a legitimate company and their identity theft service is frequently provided by companies to customers whose data has been exposed.

Although TransUnion is legit, there are many scams run by people purporting to be TransUnion. Always use caution when corresponding to unsolicited communication. If in doubt, contact TransUnion directly at one of their publicly-listed phone numbers which can be found here: https://www.transunion.com/customer-support/support-options.

TransUnion: An Overview

TransUnion is one of the three major credit bureaus in the United States (along with Equifax and Experian), which play a significant role in the financial landscape by providing consumers, businesses, and financial institutions with credit-related information and services. Each of these companies offer tools to assist individuals in understanding and managing their credit, as well as supplying businesses with data about these consumers. There are some upstarts beyond the big 3, such as Kroll.

TransUnion was founded in 1968 and now maintains credit files on more than 200 million US consumers(!). It is considered a major player in the credit reporting sector and a reliable source for traditional credit-related information.

The core services offered by TransUnion include credit reporting, credit monitoring, and identity theft protection. TransUnion collects data from various sources such as lenders, credit card companies, and public records, which help determine a person’s credit score. This score plays a factor in individual’s ability to secure loans, credit cards, and the interest rate that they’ll pay.

When it comes to business services, TransUnion offers a wide range of tools and analytics to help businesses mitigate risks, better understand consumers, and optimize their operations. Some of these products include fraud detection services, collections management, and customer acquisition strategies.

TransUnion claims to adhere to strict data security measures and maintains a robust privacy policy to safeguard the sensitive financial information of consumers and businesses alike, although there have been some high-profile hacks against credit bureaus in the past.

Credit Reporting Services

TransUnion provides credit reports and credit scores to individuals and businesses.

A credit report is a detailed account of an individual’s credit history, which includes their personal information, debt details, and payment history. Consumers and financial institutions are encouraged to periodically review credit reports to ensure accuracy. The information gathered by TransUnion is factored into credit scores and help lenders assess the risk of lending money to a specific individual.

Accurate data is important and TransUnion has expressed a committed to providing correct credit information. They regularly update consumer credit reports by gathering information from numerous sources, such as financial institutions, government agencies, and public records. This should help ensure that the most up-to-date and accurate credit information is available to those who rely on it.

One key aspect of credit reports is documentation of an individual’s payment history. Payment history is a major determinant of a person’s credit score, as timely payments are thought to indicate that future payments will be made on time. TransUnion compiles payment information from various sources, including credit card companies, mortgage lenders, and other financial service providers. This data is used to document an individual’s track record of making timely debt payments over time.

In summary, TransUnion is a legitimate credit reporting agency.

Identity Theft Protection and Fraud Prevention

Beyond credit reporting, TransUnion also provides various services related to identity theft protection and fraud prevention. Their services aim to help individuals safeguard personal and financial information from potential cyber threats and fraudulent activities.

Fraud Alert vs Credit Freeze

TransUnion offers two key options for individuals seeking to protect themselves against identity theft and fraud: Fraud Alerts and Credit Freezes.

Fraud Alerts are notifications placed on an individual’s credit report, which inform potential lenders or creditors to take extra precautions before granting credit in their name. This measure ensures the individual’s identity is verified, preventing unauthorized access to their credit information. TransUnion’s Identity Protection service monitors credit reports for potential fraud and allows users to place, remove, or renew alerts as needed.

Credit Freezes offer an extra layer of protection by restricting access to an individual’s credit report altogether. When a credit freeze is in place, potential lenders, creditors, or other entities cannot perform credit checks or open new accounts in the individual’s name. This can significantly reduce the risk of identity theft and fraud. TransUnion’s True Identity service affords users the ability to lock and unlock their credit reports with just a click, granting them full control over their personal information.

TransUnion provides these identity theft protection and fraud prevention services in response to the constantly evolving digital landscape. With options like Fraud Alerts and Credit Freezes, users can better control their credit information and mitigate potential threats.

Comparing TransUnion with Equifax and Experian

TransUnion, Equifax, and Experian are the three major credit bureaus responsible for providing credit reports and scores to consumers in the United States. Comparing these companies can help you understand the nuances between their offered services.

Data Reporting Differences

Equifax, Experian, and TransUnion may have access to different credit information, which accounts for the variations in credit scores among them1. For instance, Equifax and Experian note your employer’s name as part of your employment history while TransUnion provides more specific details, such as your title and employment dates2. Due to these differences, credit scores should be treated as estimations rather than absolute numbers.

Credit Monitoring Services & Pricing

When it comes to monitoring services, both TransUnion and Equifax offer 3-in-1 credit monitoring reports and charge a monthly fee of $14.95. TransUnion provides a 30-day free trial, whereas Equifax does not offer a trial period3. Experian, on the other hand, charges $39.95 for a similar service3. Monthly fees and trial offers may vary and should be verified to ensure accurate up-to-date pricing.

Credit Scoring Models

“FICO” is the most popular credit score model used by all three bureaus4. It consists of five factors: payment history, amounts owed, length of credit history, credit mix, and new credit. Among these factors, payment history and amounts owed are the most influential4.

It’s worth noting that all three credit bureaus are reputable and play a crucial role in the credit industry. Comparing their services and understanding the differences between these companies will enable you to make informed decisions regarding your credit management.

Footnotes

  1. https://www.merchantmaverick.com/the-complete-guide-to-credit-bureaus-equifax-vs-experian-vs-transunion/
  2. https://www.crediful.com/equifax-transunion-experian/
  3. http://recomparison.com/comparisons/100375/equifax-vs-transunion-vs-experian/ 2
  4. https://blog.sfgate.com/lifestyle/2021/03/16/transunion-vs-equifax-vs-experian-what-you-need-to-know/ 2

TransUnion’s Customer Support and Services

TransUnion is considered a legitimate source of credit information. However, unsolicited communications may cause recipients to ask: Is TransUnion legit? This is where their customer support and services can be valuable.

As mentioned above, TrueIdentity is a service offered by TransUnion to help customers monitor and protect their credit information. The service enables users to lock their credit report, preventing unauthorized access and potential identity theft. Moreover, it provides customers with real-time alerts whenever there are changes or inquiries on their credit reports.

TransUnion’s customer service department can be contacted through various channels. Their representatives are available over the phone on Mondays to Fridays between 7 am and 6 pm to assist customers with any issues they may encounter with their services. Additionally, clients can reach out directly to TransUnion via its website for further assistance and information.

In terms of customer reviews, TransUnion receives both positive and negative feedback. Some users appreciate the company’s credit monitoring services and free annual credit score, while others note discrepancies between TransUnion reports and those of other credit bureaus. It is essential for customers to consider various opinions when assessing the quality of TransUnion’s customer support and services.

Is TransUnion Legit? A Note on Phishing

When visiting the TransUnion website, it is crucial to identify whether the website is legitimate or a potential phishing attempt.

In order to ensure the URL is authentic, always double-check the web address before entering any personal information. A legitimate TransUnion URL will start with “https://www.transunion.com“. Watch out for any typos or unfamiliar extensions which are often used in phishing scams to deceive users.

For extra precaution, one can manually type the URL in the address bar or use a trusted search engine to find the TransUnion website. Saving the verified website as a bookmark can also help avoid falling for a fake website in the future.

Phishing attacks can also be carried out through emails or text messages that appear to be from TransUnion. To safeguard against such threats, be cautious of any unsolicited messages asking for personal information or to click on suspicious links. It is recommended to ignore such messages and contact TransUnion’s customer support or visit their official website to verify the legitimacy of the communication.

Enhance your online safety by updating your browser and operating system regularly. This ensures that you have the latest security patches and features to protect your information. Additionally, make sure to use a reputable antivirus software and be cautious while downloading attachments or clicking on links from unknown sources.

In summary, navigating TransUnion’s website securely is essential for protecting your sensitive information. Always verify the legitimacy of the website and stay vigilant against phishing scams, ensuring a safe and stress-free experience.

Regulations and Endorsements of TransUnion

One of the key legislations that TransUnion adheres to is the Fair and Accurate Credit Transactions Act (FACTA). Enacted in 2003, FACTA aims to enhance the accuracy of credit report information and help prevent identity theft. By following the provisions of FACTA, TransUnion is required to ensure that the credit data it provides is both accurate and reliable, fostering consumer confidence in its services.

In addition to regulatory compliance, TransUnion is endorsed by the Better Business Bureau (BBB), a non-profit organization focused on advancing marketplace trust. The BBB evaluates businesses based on factors such as transparency, responsiveness, and ethical business practices. TransUnion’s commitment to meeting the organization’s standards has led to its recognition by the BBB, further enhancing its legitimacy in the eyes of consumers.

Adherence to compliance regulations (such as FACTA) and endorsements (by the BBB among others) demonstrates that TransUnion is a legitimate and reliable choice for credit-related needs.

How Third Parties Use TransUnion’s Information

TransUnion provides information to various third parties. These third parties include lenders, landlords, and employers who rely on TransUnion’s data for a variety of reasons. Below are a few examples of how third parties use this data.

Lenders use TransUnion’s credit information to evaluate loan applicants. The data provided by TransUnion assists lenders in determining the risk and likelihood of repayment by borrowers. This information plays a crucial role in deciding whether an applicant is granted a loan, as well as influencing the interest rates and loan terms.

In the mortgage industry, TransUnion’s data is utilized to assess applicants for home loans. By analyzing the credit history and financial background of applicants, mortgage providers can better understand the likelihood of timely mortgage payments and minimize the risk of default.

Landlords can also benefit from TransUnion’s information when screening potential tenants. Accessing a tenant’s credit report helps landlords to evaluate the renter’s financial stability and payment history, ensuring they will be able to meet rent obligations and maintain the property. This information is particularly helpful in making informed decisions regarding rental agreements and mitigating the chances of selecting tenants who pose financial risks.

Employers may do employment screening which occasionally involves reviewing applicants’ credit information. Although this practice is less common, some employers use credit data as part of the hiring process to assess an applicant’s financial responsibility, especially in positions that involve managing financial resources or handling sensitive information. It is worth noting that employers must follow the Fair Credit Reporting Act (FCRA) regulations when accessing and using credit information for employment purposes.

TransUnion’s services are vital to various entities in making informed decisions about individuals’ creditworthiness and financial stability. Ensuring accurate and up-to-date credit information is essential in maintaining trust and credibility within the credit reporting industry.

Common Concerns and Complaints

TransUnion has its fair share of consumer complaints though. While it plays a significant role in the financial lives of many Americans, the company has faced criticism for various reasons.

One major issue surrounding TransUnion is the significant increase in complaints filed with the Consumer Financial Protection Bureau (CFPB). According to a CBS News report, complaints about TransUnion totaled 186,802 in a single year, which is an increase of 183% from the previous year. This amounted to 23% of all complaints Americans filed with the CFPB in that time frame.

Another cause for concern revolves around a lawsuit filed by the CFPB against TransUnion. The agency accused the company of being “unwilling or incapable” of operating within the confines of the law. In fact, the CFPB said it received nearly 150,000 complaints about TransUnion in 2021 alone. The CFPB director described TransUnion as an “out-of-control repeat offender that believes it is above the law.”

Common issues include credit report inaccuracies, difficulty in contacting customer service, and trouble disputing information. It is important to note that while these concerns and complaints exist, TransUnion remains a legitimate credit bureau involved in providing credit information to consumers and businesses. Unfortunately, TransUnion is collecting data on us consumers regardless of whether we consent to it and so we are stuck with dealing with the credit bureaus.

Frequently Asked Questions

Is ExperianIDWorks Legit?

Companies are hacked every day and every few months I receive a notification that my personal data has been compromised in a some company’s breach. These notifications often come with an offer for credit monitoring or protection.

I once received a suspicious looking offer from Experian IdentityWorks (also known as ExperianIDWorks and I may use the names interchangeably). The offer was related to a data breach at a financial institution that I used. Although I had heard of Experian, I was not familiar with their credit monitoring product. Phishing remains a serious threat these days, so I decided to do some research to see: is ExperianIDWorks legit?

ExperianIDWorks Is Legit

Fortunately, my research indicates that ExperianIDWorks is a legitimate service and Experian IdentityWorks is a service frequently provided by companies to customers whose data has been exposed.

When considering the legitimacy of this service, it is important to note that Equifax data breach settlement emails offering a free membership for Experian IdentityWorks have been confirmed as legitimate. That being said, consumers should take steps to verify that any communication from Experian is indeed from Experian (and not a scammer posing as Experian).

History

The company known as Experian is result of many mergers and acquisitions, but existed in one form or another for over 125 years. Their services include notification and call center support, identity theft restoration and consultation, and credit and identity monitoring services provided to consumers on behalf of their clients. However, some people (including myself) have reported concerns about the company asking for sensitive information which has raised questions about the authenticity of the service. This is a common question about credit-related companies, such as Kroll and LifeLock.

What is Experian IdentityWorks?

Experian IdentityWorks is a comprehensive identity theft protection and credit monitoring service provided by Experian, one of the largest credit bureaus in the world. The service is designed to help individuals safeguard their personal information, monitor their credit, and detect potential fraudulent activities.

IdentityWorks offers various plans, but the one offered by companies to the victims of data breaches seems to fall between the free and premium plans. My research indicates that the benefits offered to victims is better than the free plan, but not as comprehensive as the premium plan.

Features of ExperianIDWorks

Credit Monitoring

Credit monitoring is the main feature of Experian IdentityWorks and is important to have if one’s identity is stolen. This service alerts victims to new accounts or loan, credit inquiries (related to applying for credit cards, rental applications, etc.), or judgements/liens.

Daily Credit Reports

A daily credit report is probably overkill for most people, but an Experian IdentityWorks provides daily access to your credit history including new accounts and/or delinquencies.

Identity Theft Insurance

Experian claims it will reimburse up to $1 million for “certain expenses” in the event that a subscribers identity is compromised. Its not clear to me whether the insurance policy is any good, but they offer it as a benefit.

Identity Restoration

The identity restoration services appear to be a solid benefit. The Experian website advertises: “We provide full-service Identity Restoration in the event of identity theft. Even if you simply suspect a problem, a certified Identity Restoration specialist will work with you to identify and resolve the issue.”

User Reviews and Testimonials

Experian IdentityWorks offers US-based 24/7 customer support to its customers. According to user reviews, Experian’s customer service team is knowledgeable and can provide useful information to resolve issues. However, some users have reported that customer service could be improved in terms of response times and smoothness of communication. I personally find platforms like twitter or reddit good for finding reviews of Experian IdentityWorks.

Is ExperianIDWorks Legit?

In short, yes, ExperianIDWorks is legitimate. My own experience mirrors others in that I was not sure why they were contacting me or requesting personal information. If you receive something from ExperianIDWorks, a company was likely hacked and your information was possibly compromised. Hacked companies (or their insurers) typically pay ExperianIDWorks (or Kroll Monitoring or LifeLock are other popular one) to reach out to affected consumers and offer ExperianIDWorks. If you receive something from ExperianIDWorks, I would double-check to ensure it is actually ExperianIDWorks contacting you.

Frequently Asked Questions (FAQs)

Is the Equifax Breach Settlement Legit? Yes, But Be Careful

The Equifax data breach of 2017 exposed the personal data of millions of customers, leading to a significant settlement agreement of up to $425 million to help those affected. Many consumers are wondering: is the Equifax breach settlement legit and am I entitled to compensation or benefits. Unfortunately, scammers have attempted to exploit the confusion around the situation by creating false opportunities for settlement funds.

So, is the Equifax breach settlement legit? Yes, the Equifax breach settlement is legit, but there are many scammers pretending to be Equifax. So consumers should be careful before claiming any offers from Equifax. According to the FTC, legitimate emails about the settlement will come from info@equifaxbreachsettlement.com. If you’re not sure if a communication is real or fake, the FTC has provided the following phone number: 1-833-759-2982. It is crucial for individuals to understand the legitimacy of communications they receive regarding the Equifax data breach settlement. By staying informed and vigilant, potential victims can protect themselves from scams and false claims while accessing any available compensation and support.

Addressing the legitimacy of the Equifax data breach settlement, the Federal Trade Commission confirms that payments for out-of-pocket losses, time spent claims, and other cash benefits have started to be disbursed. Consumers can file a claim directly at the above link as well.

Understanding the Equifax Breach Settlement

In 2017, Equifax, a major credit reporting agency, experienced a significant data breach that exposed the personal information of approximately 147 million people. The breach resulted from hackers exploiting a website application vulnerability, leading to the exposure of sensitive data such as names, Social Security numbers, birth dates, and addresses1.

The Equifax data breach settlement2 was established to provide compensation for those affected by the breach, with Equifax agreeing to spend up to $425 million to help the people impacted. The settlement covers various types of claims, including out-of-pocket losses, time spent dealing with the breach, and other cash benefits. As of December 2022, the settlement administrator has started sending out payments to claimants3.

The compensation amounts may vary for each individual, with some people receiving payments of $5.21, $22.82, or $17.614. This variation in payment amounts has led to confusion among the recipients. However, it is essential to understand that the differences in settlement payments may be due to the varying levels of impact the breach had on each person.

Claimants can expect to receive their payments through the method they initially chose, which could be a check, prepaid card, or PayPal payment3. Keep an eye out for your payment if you filed a claim for the Equifax data breach settlement.

As part of the settlement, Equifax has also implemented measures to improve its data security and strengthen its “my Equifax” service for customers. The focus on enhancing the “my Equifax” service is essential as it helps users monitor their credit reports and respond to potential issues in a timely manner.

To conclude, the Equifax data breach settlement is legitimate and provides compensation for those affected by the breach. As a user of the “my Equifax” service, it is crucial to stay informed about the settlement proceedings, your compensation, and any updates in the security measures implemented by Equifax.

Footnotes

  1. https://news.trendmicro.com/2022/10/19/equifax-data-breach-settlement-legit-or-scam/
  2. https://www.ftc.gov/enforcement/refunds/equifax-data-breach-settlement
  3. https://www.consumerfinance.gov/equifax-settlement/ 2
  4. https://piunikaweb.com/2022/12/21/difference-in-equifax-breach-settlement-payment-leads-to-confusion/

Steps to Protect Yourself

Credit Monitoring and Fraud Protection

Taking advantage of credit monitoring services is an essential step to safeguard your personal information. The Equifax data breach settlement provides access to free credit monitoring for affected individuals. By monitoring your credit report, you can identify any suspicious activity and take appropriate action. Those who do not trust Equifax anymore, may consider a service like Kroll Monitoring.

For added protection, consider fraud protection services. These services monitor your personal information on the internet and alert you if anything unusual is detected. This can include potential identity theft, unauthorized credit inquiries, or other forms of fraud. Fraud protection services can help you stay proactive in protecting your personal information from potential threats.

Identity Theft Measures

In the wake of the Equifax data breach, it’s crucial to take additional identity theft measures. One important step to consider is placing a fraud alert on your credit file. This serves as a warning to potential creditors that someone might be attempting to use your identity fraudulently. Creditors will then take extra precautions to verify your identity before extending credit.

Another measure is to freeze your credit. A credit freeze restricts access to your credit report, making it more difficult for identity thieves to open new accounts in your name. While this requires you to unfreeze your credit when you need to apply for credit or services, it’s a powerful tool in preventing unauthorized access to your credit information.

Regularly checking your credit reports is also essential in detecting any signs of identity theft. Be sure to review the reports carefully and report any inaccuracies or signs of fraud immediately.

Taking these steps to protect yourself not only makes it more challenging for thieves to access and misuse your personal information but can also provide you with greater peace of mind. Always stay vigilant and proactive in protecting your identity and credit in the face of ongoing threats and breaches.

Claiming Benefits from the Settlement

Determining Eligibility

In order to claim benefits from the Equifax data breach settlement, individuals must first determine their eligibility. The eligibility criteria mainly include being affected by the data breach that occurred in September 2017, in which personal information, such as Social Security numbers, was exposed. To check whether your information was impacted by the breach, visit the official Equifax Data Breach Settlement website and use their provided look-up tool.

Submitting a Claim

Once eligibility is confirmed, affected individuals can submit a claim to receive the settlement benefits. These benefits may include:

  • Reimbursement cash payments for time spent during the extended claims period recovering from fraud, identity theft, or other misuse of personal information caused by the data breach, up to 20 total hours at $25 per hour1.
  • Compensation for financial losses and expenses incurred as a result of identity theft or fraud stemming from the breach1.

The claim process entails completing a form on the official website. Note that the initial deadline for filing a claim was January 22, 2020. However, individuals can still file a claim for expenses incurred between January 23, 2020, and January 22, 2024, in relation to the breach2. It’s crucial to avoid making exaggerated or false claims when submitting a claim for compensation, as this may lead to legal repercussions.

The “My Equifax” service also provides individuals access to free credit monitoring and identity theft protection, which can be helpful in safeguarding your data and personal information from potential misuse in the future.

Footnotes

  1. Home | Equifax Data Breach Settlement 2
  2. Equifax Data Breach Settlement | Federal Trade Commission

Potential Red Flags and Scams

Fake Websites and Emails

The Federal Trade Commission (FTC) has warned that con artists have created fake websites resembling the official Equifax settlement website, aiming to lure some of the 147 million potential claimants. With the rise of phishing scams, it is crucial to be vigilant when discerning the legitimacy of websites and emails related to the Equifax Data Breach Settlement.

To avoid falling victim to fake websites, always ensure the site’s web address matches the official Equifax settlement URL. Be cautious when clicking on links provided in emails or social media messages claiming to be related to the settlement.

Identity Theft

Another area of concern stems from the potential for identity theft. Cybercriminals may attempt to exploit the data exposed in the Equifax breach further. It is essential to monitor your credit reports and personal information regularly, as well as take advantage of the free credit monitoring offered as part of the settlement.

Victims of the breach should implement robust security measures, such as using two-factor authentication for online accounts, and staying informed of any unusual activity or unauthorized transactions.

Fraudulent Claims

Scammers may also capitalize on the Equifax breach by making fraudulent claims in the names of affected individuals. It is important to ensure that any claims made for compensation are submitted only through the official channels and legitimate processes.

To safeguard against fraudulent claims, regularly check the status of your claim and be on the lookout for any suspicious activities. Additionally, be cautious of callers or emails requesting information about your Equifax claim or personal data that may be used to impersonate you.

By staying vigilant and informed, victims of the Equifax breach can better protect themselves from potential scams and other risks associated with the settlement process.

Additional Resources

In response to the Equifax data breach settlement, the three nationwide credit reporting companies, Equifax, Experian, and TransUnion, are currently offering free weekly access to credit reports online at annualcreditreport.com. Focusing on the “My Equifax” service, Equifax is committed to providing up to seven free reports per year until 2026, ensuring consumers maintain informed and secure control over their credit information.

For information regarding the Equifax settlement, individuals can contact the dedicated phone number, 1-833-759-2982. As part of the settlement process, consumers who signed up for credit monitoring services need to activate them using an activation code. This code should be sent via email alerts.

Given the seriousness of the breach and potential impacts, it is essential to remain cautious and monitor for signs of identity theft. This can include unauthorized charges on bank account statements, unexpected credit reports activity, or unfamiliar accounts opened in your name. In case of any suspicious activity, promptly contact the relevant financial institutions and place a fraud alert on your credit.

Equifax also offers the “My Equifax” service, which provides U.S. consumers access to manage their Equifax credit files, request freezes and alerts, and receive assistance in identity theft incidents.

Frequently Asked Questions (FAQs)

Is LifeLock Legit?

Companies are hacked every day and every few months I receive a notification that my personal data has been compromised in a some company’s breach. These notifications often come with an offer for credit monitoring or protection.

In the past, I have received suspicious looking offers from LifeLock. Although vaguely familiar with the name, I didn’t know that LifeLock had credit monitoring service. Phishing remains a serious threat these days, so I decided to do some research on LifeLock to see if LifeLock is legit.

LifeLock Is Legit

Fortunately, my research indicates that LifeLock is a legitimate company and that LifeLock is a service frequently provided by companies to customers whose data has been exposed.

That being said, consumers should take steps to verify that any communication from LifeLock is indeed from LifeLock (and not a scammer posing as LifeLock).

History: Norton and LifeLock Partnership

LifeLock has been around since 2005 and was acquired by Symantec (who makes the Norton security software) in 2017. The partnership combines Norton’s security expertise with LifeLock’s identity theft protection to create a comprehensive solution for online threats. LifeLock experienced quite a bit of controversy prior to their acquisition, but things seem more stable now.

Features of LifeLock Standard

LifeLock offers several plans at different price points. It seems that the LifeLock Standard Plan is the one most commonly offered to victims of data breaches (when a state or company is hacked).

LifeLock Identity Alert System (Identity and SSN Alerts)

This benefit is “… the foundation for all LifeLock services. We monitor for fraudulent use of a member’s Social Security number, name, address, or date of birth in applications for credit and services. The patented system sends alert by text, phone, email, or mobile app.

Privacy Monitor

The “Privacy Monitor Assistant” scans the websites of popular data brokers for your personal information and will request the opt-out and/or removal of your personal data. This seems to be a one-time scan that is repeated every 90 days, rather than an ongoing scan.

Dark Web Monitoring

In addition to credit monitoring, LifeLock also provides dark web monitoring. The dark web is a part of the internet that’s not indexed by search engines and often used for illegal activities, including buying and selling stolen personal information. Dark web monitoring service scans various databases, forums, and other platforms on the dark web, searching for your personal information. If your data is found, LifeLock will notify you, allowing you to take necessary measures and protect yourself from potential misuse of your information.

Stolen Funds Reimbursement

One of the notable features offered by LifeLock is the stolen funds reimbursement. If you fall victim to identity theft, LifeLock can help recover your lost funds up to a certain limit, depending on your plan ($25,000 under the Standard). This feature is particularly important for providing financial assistance when you need it most.

One-Bureau Credit Monitoring

LifeLock offers credit monitoring services, which track your credit reports from one of the three major credit bureaus – Equifax, TransUnion, and Experian. Monitoring your credit reports is crucial in detecting potential signs of identity theft, as it can alert you to unauthorized credit inquiries, newly opened accounts, or changes to your personal information, such as your name or address. By partnering with these credit bureaus, LifeLock helps ensure users get timely alerts and can take action to minimize the impact of potential identity theft.

Lost Wallet Protection

In the case that you lose credit cards, government documents, IDs, and so on, LifeLock will attempt to help you cancel what needs to be cancelled and replace what can be replaced.

US Based Identity Restoration Specialists

If a LifeLock subscriber’s identity is stolen, LifeLock has identity restoration specialists whose job it is is to help the victim mitigate the risks and help restore the victims identity. LifeLock highlights that these people are in the US rather than a foreign call center.

USPS Address Change Verification

I believe USPS already provides this service, so I am not sure why this is highlighted as a benefit. As I’ve noted in another post, many of the benefits that these credit monitoring companies offer can be obtained for free.

Coverage for Lawyers and Experts

I’m not 100% clear how this part works, but the LifeLock website states, “If you become a victim of identity theft while a LifeLock member, we will provide the necessary lawyers and experts if needed to help resolve your case, up to $1 million.” Its not clear how the $1 million is determined if LifeLock is the one providing the “lawyers and experts.”

LifeLock Mobile App

LifeLock offers a user-friendly Identity Theft Protection Mobile App packed with features to help you stay protected against the growing threat of identity theft. The app is available for both Android users on the Google Play Store and iOS users on the App Store.

With the LifeLock app, identity theft protection is in your pocket. The app can detect a wide range of threats and send notifications straight to your mobile device if any suspicious activities are detected. It serves as the foundation of all LifeLock identity theft protection services, providing users with convenience and peace of mind. The LifeLock mobile app brings identity theft protection to your fingertips by merging technology and convenience. By making it easy to monitor your personal information, the app is a useful tool for maintaining proper control of your digital identity.

In addition to monitoring your credit, the LifeLock app also lets you check credit scores from three major credit bureaus. You can even receive alerts whenever your score changes, ensuring that you stay updated on your financial health. The app also offers tips on how to improve your score.

User Reviews and Testimonials

During my research on LifeLock, I came across varying opinions about the legitimacy of their services. Some users on the Better Business Bureau® website mentioned concerns about providing their Social Security number to LifeLock, expressing suspicion about their A+ rating claims.

While browsing Reddit, I found a post where a user received a letter from Medical Group offering complimentary identity monitoring services from LifeLock. However, a common concern (and one that I share) is whether to provide one’s social security number to credit monitoring companies. LifeLock itself has been hacked in the past!

Is LifeLock Legit?

In short, yes, LifeLock is legitimate. My own experience mirrors others in that I was not sure why they were contacting me or requesting personal information. If you receive something from LifeLock, a company was likely hacked and your information was possibly compromised. Hacked companies (or their insurers) typically pay LifeLock (or Kroll Monitoring is another popular one) to reach out to affected consumers and offer LifeLock. If you receive something from LifeLock, I would double-check to ensure it is actually LifeLock contacting you.

SCHD vs SCHX: Which Schwab ETF is Better? (Review by an Expert)

The Vanguard S&P 500 ETF (SCHX) is one of the largest ETFs and is a core holding of many portfolios, while the Schwab US Dividend Equity ETF (SCHD) is a popular dividend-oriented ETF. In this case, SCHD targets stocks that meet certain dividend-related requirements (as they are defined by the index provider). Even though SCHX and SCHD play different roles in a portfolio, many investors compare the two funds in order to determine whether they should tilt their portfolio towards a dividends or the value factor.

A quick reminder that this site does NOT provide investment recommendations. Fund comparisons (such as this one) are not conducted to identify the “best” fund (since that will vary from investor to investor based on investor-specific factors). Rather, these fund comparison posts are designed to identify and distinguish between the fund details that matter versus the ones that don’t.

The Short Answer

SCHD only owns stocks that meet the Dow Jones U.S. Dividend 100™ Index’s requirements, which has the effect of tilting the portfolio towards the value factor. SCHX owns a more diverse portfolio including growth stocks. Historical performance of SCHD vs SCHX has been similar, but will depend on how the value and growth factors perform moving forward.

The Long Answer

Historical Performance: SCHD vs SCHX

Since the common inception date in 2011, performance has been relatively similar with an annualized difference of roughly .7%. This has compounded over time though and the cumulative performance differential is about 29%.

As the SCHD vs SCHX chart of historical performance illustrates, SCHX has outperformed over the past decade or so. However, SCHD has outperformed over several periods of time including the calendar year of 2022 when the growth factor really underperformed the value factor.

Differences Between SCHD and SCHX

The primary difference between these two funds is that SCHD tracks the Dow Jones U.S. Dividend 100™ Index, while SCHX tracks the broader S&P 500 index.

Geographic Exposure

Both SCHD and SCHX hold essentially 100% US stocks, so I will not dig into country exposures or market classification here. For all intents and purposes, the two funds have identical country exposures.

Market Cap Exposure

Overall, the market cap exposures of SCHD and SCHX are relatively similar.

SCHDSCHX
Large Cap78%78%
Mid Cap17%20%
Small Cap4%2%
Source: ThoughtfulFinance.com, Morningstar (as of 4/30/2023)

Sector Weights

There are some significant differences in sector weights, which makes sense based on the fact that SCHD is targeting high dividends and some sectors meet this criteria more easily.

SCHDSCHX
Basic Materials1.95%2.26%
Consumer Cyclical9.66%10.71%
Financial Services14.42%12.18%
Real Estate0.00%2.78%
Communication Services4.63%8.40%
Energy9.06%4.12%
Industrials17.48%8.40%
Technology13.34%28.90%
Consumer Defensive13.49%6.29%
Health Care15.69%13.42%
Utilities0.28%2.55%
Source: ThoughtfulFinance.com, Morningstar (as of 5/30/2023)

Expenses

SCHD’s expense ratio is .06%, while SCHX’s expense ratio is .03%. Yes, SCHD is 100% more expensive than SCHX, but we’re talking about 3 basis points! This in an non-issue in my opinion.

Transaction Costs

ETFs are free to trade at many brokers and custodians, so both SCHD and SCHX should be free to trade in most cases. Additionally, these funds are among the largest ETFs and are very liquid. The bid-ask spread of both SCHD and SCHX is very low, so individual investor trades will not generally be large enough to “move” the market.

Tax Efficiency & Capital Gain Distributions

ETFs are typically more tax-efficient than mutual funds, due to their ability to avoid realizing capital gains through like-kind redemptions (a process that is beyond the scope of this post). Neither SCHD nor SCHX has ever made a capital gains distribution (nor do I expect them to moving forward). Thus, these funds are about as tax-efficient as any fund can be and either fund is appropriate in taxable accounts, although the dividends do create a very slight tax drag.

Final Thoughts: SCHD vs SCHX

Both funds are great ETFs that do what they are designed to do. I would not personally use dividend ETFs as the core of a portfolio, but that is a personal opinion and not necessarily the consensus. For a core position, I would personally choose SCHX every time. However, investors looking for a satellite position in order to tilt their portfolio towards value could do a lot worse than using SCHD. At the end of the day, these two funds are not necessarily comparable because they play slightly different roles in a portfolio.

SCHD vs IVV

The iShares S&P 500 ETF (IVV) is one of the largest ETFs and is a core holding of many portfolios, while the Schwab US Dividend Equity ETF (SCHD) is a popular dividend-oriented ETF. In this case, SCHD targets stocks that meet certain dividend-related requirements (as they are defined by the index provider). Even though IVV and SCHD play different roles in a portfolio, many investors compare the two funds in order to determine whether they should tilt their portfolio towards a dividends or the value factor.

A quick reminder that this site does NOT provide investment recommendations. Fund comparisons (such as this one) are not conducted to identify the “best” fund (since that will vary from investor to investor based on investor-specific factors). Rather, these fund comparison posts are designed to identify and distinguish between the fund details that matter versus the ones that don’t.

The Short Answer

SCHD only owns stocks that meet the Dow Jones U.S. Dividend 100™ Index’s requirements, which has the effect of tilting the portfolio towards the value factor. IVV owns a more diverse portfolio including growth stocks. Historical performance of SCHD vs IVV has been similar, but will depend on how the value and growth factors perform moving forward.

The Long Answer

Historical Performance: SCHD vs IVV

Since the common inception date in 2011, performance has been relatively similar with an annualized difference of roughly .8%. This has compounded over time though and the cumulative performance differential is about 35%.

As the SCHD vs IVV chart of historical performance illustrates, IVV has outperformed over the past decade or so. However, SCHD has outperformed over several periods of time including the calendar year of 2022 when the growth factor really underperformed the value factor.

Differences Between SCHD and IVV

The primary difference between these two funds is that SCHD tracks the Dow Jones U.S. Dividend 100™ Index, while IVV tracks the broader S&P 500 index.

Geographic Exposure

Both SCHD and IVV hold essentially 100% US stocks, so I will not dig into country exposures or market classification here. For all intents and purposes, the two funds have identical country exposures.

Market Cap Exposure

Overall, the market cap exposures of SCHD and IVV are relatively similar.

SCHDIVV
Large Cap78%82%
Mid Cap17%18%
Small Cap4%0%
Source: ThoughtfulFinance.com, Morningstar (as of 5/31/2023)

Sector Weights

There are some significant differences in sector weights, which makes sense based on the fact that SCHD is targeting high dividends and some sectors meet this criteria more easily.

SCHDIVV
Basic Materials1.95%2.26%
Consumer Cyclical9.66%10.60%
Financial Services14.42%12.23%
Real Estate0.00%2.53%
Communication Services4.63%8.59%
Energy9.06%4.33%
Industrials17.48%8.28%
Technology13.34%28.13%
Consumer Defensive13.49%6.72%
Health Care15.69%13.66%
Utilities0.28%2.68%
Source: ThoughtfulFinance.com, Morningstar (as of 5/30/2023)

Expenses

SCHD’s expense ratio is .06%, while IVV’s expense ratio is .03%. Yes, SCHD is 100% more expensive than IVV, but we’re talking about 3 basis points! This in an non-issue in my opinion.

Transaction Costs

ETFs are free to trade at many brokers and custodians, so both SCHD and IVV should be free to trade in most cases. Additionally, these funds are among the largest ETFs and are very liquid. The bid-ask spread of both SCHD and IVV is very low, so individual investor trades will not generally be large enough to “move” the market.

Tax Efficiency & Capital Gain Distributions

ETFs are typically more tax-efficient than mutual funds, due to their ability to avoid realizing capital gains through like-kind redemptions (a process that is beyond the scope of this post). Neither SCHD nor IVV has ever made a capital gains distribution (nor do I expect them to moving forward). Thus, these funds are about as tax-efficient as any fund can be and either fund is appropriate in taxable accounts, although the dividends do create a very slight tax drag.

Final Thoughts: SCHD vs IVV

Both funds are great ETFs that do what they are designed to do. I would not personally use dividend ETFs as the core of a portfolio, but that is a personal opinion and not necessarily the consensus. For a core position, I would personally choose IVV every time. However, investors looking for a satellite position in order to tilt their portfolio towards value could do a lot worse than using SCHD. At the end of the day, these two funds are not necessarily comparable because they play slightly different roles in a portfolio.

SCHD vs SPY: Review of Two Popular ETFs by an Expert

The State Street SPDR S&P 500 Trust ETF (SPY) is the largest ETF and is a core holding of many portfolios, while the Schwab US Dividend Equity ETF (SCHD) is a popular dividend-oriented ETF. In this case, SCHD targets stocks that meet certain dividend-related requirements (as they are defined by the index provider). Even though SPY and SCHD play different roles in a portfolio, many investors compare the two funds in order to determine whether they should tilt their portfolio towards a dividends or the value factor.

A quick reminder that this site does NOT provide investment recommendations. Fund comparisons (such as this one) are not conducted to identify the “best” fund (since that will vary from investor to investor based on investor-specific factors). Rather, these fund comparison posts are designed to identify and distinguish between the fund details that matter versus the ones that don’t.

The Short Answer

SCHD only owns stocks that meet the Dow Jones U.S. Dividend 100™ Index’s requirements, which has the effect of tilting the portfolio towards the value factor. SPY owns a more diverse portfolio including growth stocks. Historical performance of SCHD vs SPY has been similar, but will depend on how the value and growth factors perform moving forward.

The Long Answer

Historical Performance: SCHD vs SPY

Since the common inception date in 2011, performance has been relatively similar with an annualized difference of roughly .8%. This has compounded over time though and the cumulative performance differential is about 33%.

As the SCHD vs SPY chart of historical performance illustrates, SPY has outperformed over the past decade or so. However, SCHD has outperformed over several periods of time including the calendar year of 2022 when the growth factor really underperformed the value factor.

Differences Between SCHD and SPY

The primary difference between these two funds is that SCHD tracks the Dow Jones U.S. Dividend 100™ Index, while SPY tracks the broader S&P 500 index.

Geographic Exposure

Both SCHD and SPY hold essentially 100% US stocks, so I will not dig into country exposures or market classification here. For all intents and purposes, the two funds have identical country exposures.

Market Cap Exposure

Overall, the market cap exposures of SCHD and SPY are relatively similar.

SCHDSPY
Large Cap78%82%
Mid Cap17%18%
Small Cap4%0%
Source: ThoughtfulFinance.com, Morningstar (as of 5/30/2023)

Sector Weights

There are some significant differences in sector weights, which makes sense based on the fact that SCHD is targeting high dividends and some sectors meet this criteria more easily.

SCHDSPY
Basic Materials1.95%2.26%
Consumer Cyclical9.66%10.75%
Financial Services14.42%12.08%
Real Estate0.00%2.48%
Communication Services4.63%8.58%
Energy9.06%4.21%
Industrials17.48%8.26%
Technology13.34%28.55%
Consumer Defensive13.49%6.62%
Health Care15.69%13.58%
Utilities0.28%2.61%
Source: ThoughtfulFinance.com, Morningstar (as of 5/30/2023)

Expenses

SCHD’s expense ratio is .06%, while SPY’s expense ratio is .095%. Yes, SPY is 50%+ more expensive than SCHD, but we’re talking about 3.5 basis points! This in an non-issue in my opinion.

Transaction Costs

ETFs are free to trade at many brokers and custodians, so both SCHD and SPY should be free to trade in most cases. Additionally, these funds are among the largest ETFs and are very liquid. The bid-ask spread of both SCHD and SPY is very low, so individual investor trades will not generally be large enough to “move” the market.

Tax Efficiency & Capital Gain Distributions

ETFs are typically more tax-efficient than mutual funds, due to their ability to avoid realizing capital gains through like-kind redemptions (a process that is beyond the scope of this post). Neither SCHD nor SPY makes capital gains distribution (nor do I expect them to moving forward). Thus, these funds are about as tax-efficient as any fund can be and either fund is appropriate in taxable accounts, although the dividends do create a very slight tax drag.

Final Thoughts: SCHD vs SPY

Both funds are great ETFs that do what they are designed to do. I would not personally use dividend ETFs as the core of a portfolio, but that is a personal opinion and not necessarily the consensus. For a core position, I would personally choose SPY every time. However, investors looking for a satellite position in order to tilt their portfolio towards value could do a lot worse than using SCHD. At the end of the day, these two funds are not necessarily comparable because they play slightly different roles in a portfolio.

SCHD vs VOO: Review by an Expert

The Vanguard S&P 500 ETF (VOO) is one of the largest ETFs and is a core holding of many portfolios, while the Schwab US Dividend Equity ETF (SCHD) is a popular dividend-oriented ETF. In this case, SCHD targets stocks that meet certain dividend-related requirements (as they are defined by the index provider). Even though VOO and SCHD play different roles in a portfolio, many investors compare the two funds in order to determine whether they should tilt their portfolio towards a dividends or the value factor.

A quick reminder that this site does NOT provide investment recommendations. Fund comparisons (such as this one) are not conducted to identify the “best” fund (since that will vary from investor to investor based on investor-specific factors). Rather, these fund comparison posts are designed to identify and distinguish between the fund details that matter versus the ones that don’t.

The Short Answer

SCHD only owns stocks that meet the Dow Jones U.S. Dividend 100™ Index’s requirements, which has the effect of tilting the portfolio towards the value factor. VOO owns a more diverse portfolio including growth stocks. Historical performance of SCHD vs VOO has been similar, but will depend on how the value and growth factors perform moving forward.

The Long Answer

Historical Performance: SCHD vs VOO

Since the common inception date in 2011, performance has been relatively similar with an annualized difference of roughly .8%. This has compounded over time though and the cumulative performance differential is about 36%.

As the SCHD vs VOO chart of historical performance illustrates, VOO has outperformed over the past decade or so. However, SCHD has outperformed over several periods of time including the calendar year of 2022 when the growth factor really underperformed the value factor.

Differences Between SCHD and VOO

The primary difference between these two funds is that SCHD tracks the Dow Jones U.S. Dividend 100™ Index, while VOO tracks the broader S&P 500 index.

Geographic Exposure

Both SCHD and VOO hold essentially 100% US stocks, so I will not dig into country exposures or market classification here. For all intents and purposes, the two funds have identical country exposures.

Market Cap Exposure

Overall, the market cap exposures of SCHD and VOO are relatively similar.

SCHDVOO
Large Cap78%83%
Mid Cap17%17%
Small Cap4%0%
Source: ThoughtfulFinance.com, Morningstar (as of 4/30/2023)

Sector Weights

There are some significant differences in sector weights, which makes sense based on the fact that SCHD is targeting high dividends and some sectors meet this criteria more easily.

SCHDVOO
Basic Materials1.95%2.35%
Consumer Cyclical9.66%10.17%
Financial Services14.42%12.59%
Real Estate0.00%2.62%
Communication Services4.63%8.28%
Energy9.06%4.69%
Industrials17.48%8.18%
Technology13.34%26.42%
Consumer Defensive13.49%7.32%
Health Care15.69%14.49%
Utilities0.28%2.88%
Source: ThoughtfulFinance.com, Morningstar (as of 5/30/2023)

Expenses

SCHD’s expense ratio is .06%, while VOO’s expense ratio is .03%. Yes, SCHD is 100% more expensive than VOO, but we’re talking about 3 basis points! This in an non-issue in my opinion.

Transaction Costs

ETFs are free to trade at many brokers and custodians, so both SCHD and VOO should be free to trade in most cases. Additionally, these funds are among the largest ETFs and are very liquid. The bid-ask spread of both SCHD and VOO is very low, so individual investor trades will not generally be large enough to “move” the market.

Tax Efficiency & Capital Gain Distributions

ETFs are typically more tax-efficient than mutual funds, due to their ability to avoid realizing capital gains through like-kind redemptions (a process that is beyond the scope of this post). Neither SCHD nor VOO has ever made a capital gains distribution (nor do I expect them to moving forward). Thus, these funds are about as tax-efficient as any fund can be and either fund is appropriate in taxable accounts, although the dividends do create a very slight tax drag.

Final Thoughts: SCHD vs VOO

Both funds are great ETFs that do what they are designed to do. I would not personally use dividend ETFs as the core of a portfolio, but that is a personal opinion and not necessarily the consensus. For a core position, I would personally choose VOO every time. However, investors looking for a satellite position in order to tilt their portfolio towards value could do a lot worse than using SCHD. At the end of the day, these two funds are not necessarily comparable because they play slightly different roles in a portfolio.

VOOG vs VTI

VTI is one of the largest ETFs and is a core holding of many portfolios, while VOOG is a popular “factor” ETF. In this context, factors are quantitative characteristics that index providers assign to stocks. In this case, VOOG targets growth stocks (as they are defined by the index provider). Even though VTI and VOOG play different roles in a portfolio, many investors compare the two funds in order to determine whether they should tilt their portfolio towards a factor or to benchmark a factor’s performance. Please read on for a comparison of VOOG vs VTI.

A quick reminder that this site does NOT provide investment recommendations. Fund comparisons (such as this one) are not conducted to identify the “best” fund (since that will vary from investor to investor based on investor-specific factors). Rather, these fund comparison posts are designed to identify and distinguish between the fund details that matter versus the ones that don’t.

The Short Answer

VOOG only owns large-cap stocks that are classified as growth stocks. VTI owns a more diverse portfolio of all market caps and investment styles. Historical performance has been similar, but will depend on how the growth factor performs moving forward.

The Long Answer

Historical Performance: VOOG vs VTI

Since their common inception in 2010, performance has been relatively similar with an annualized difference of roughly 1.5%. This has compounded over time though and the cumulative performance differential is about 90%!

As the VOOG vs VTI chart shows, the growth factor has really outperformed the broader market since their common inception. However, this did change in 2022 as lines begin to converge again. It is anyone’s guess whether growth or value will perform better in the future.

Differences Between VOOG and VTI

The primary difference between these two funds is that VOOG tracks the Standard & Poor’s 500 Growth Index, while VTI tracks the broader CRSP US Total Market Index.

Geographic Exposure

Both VOOG and VTI hold essentially 100% US stocks, so I will not dig into country exposures or market classification here. For all intents and purposes, the two funds have identical country exposures.

Market Cap Exposure

Overall, the market cap exposures of VOOG and VTI are relatively similar.

VOOGVTI
Large Cap91%72%
Mid Cap10%20%
Small Cap0%9%
Source: ThoughtfulFinance.com, Morningstar (as of 4/30/2023)

Sector Weights

There are some significant differences in sector weights, which makes sense based on the fact that VOOG is targeting the growth factor and some sectors meet the growth factor criteria more easily.

VOOGVTI
Basic Materials2.14%2.56%
Consumer Cyclical9.51%10.39%
Financial Services7.00%12.79%
Real Estate0.97%3.29%
Communication Services7.11%7.61%
Energy7.50%5.06%
Industrials4.87%8.76%
Technology34.21%23.76%
Consumer Defensive7.29%7.13%
Health Care18.89%14.75%
Utilities0.52%2.94%
Source: ThoughtfulFinance.com, Morningstar (as of 4/30/2023)

Expenses

VOOG’s expense ratio is .10%, while VTI’s expense ratio is .03%. Yes, VOOG is 3x more expensive than VTI, but we’re talking about 7 basis points! This in an non-issue in my opinion.

Transaction Costs

ETFs are free to trade at many brokers and custodians, so both VOOG and VTI should be free to trade in most cases. Additionally, these funds are among the largest ETFs and are very liquid. The bid-ask spread of both VOOG and VTI is very low, so individual investor trades will not generally be large enough to “move” the market.

Tax Efficiency & Capital Gain Distributions

ETFs are typically more tax-efficient than mutual funds, due to their ability to avoid realizing capital gains through like-kind redemptions (a process that is beyond the scope of this post). Neither VOOG nor VTI has ever made a capital gains distribution (nor do I expect them to moving forward). Thus, these funds are about as tax-efficient as any fund can be and either fund is appropriate in taxable accounts.

Final Thoughts: VOOG vs VTI

Both funds are great ETFs that do what they are designed to do. Generally speaking, I do not think factor ETFs should be the core of a portfolio. For a core position, I would personally choose VTI every time. However, investors looking for a satellite position in order to tilt their portfolio towards growth could do a lot worse than using VOOG (although some may get similar results with something like VUG). At the end of the day, these two funds are not necessarily comparable because they play very different roles in a portfolio.

Curious readers who want to read about a nearly identical ETF can read my comparison of VOOG vs VUG here.

VTV vs VTI: Comparison by an Expert

VTI is one of the largest ETFs and is a core holding of many portfolios, while VTV is a popular “factor” ETF. In this context, factors are quantitative characteristics that index providers assign to stocks. In this case, VTV targets value stocks (as they are defined by the index provider). Even though VTI and VTV play different roles in a portfolio, many investors compare the two funds in order to determine whether they should tilt their portfolio towards a factor or to benchmark a factor’s performance. Please read on for a comparison of VTV vs VTI.

A quick reminder that this site does NOT provide investment recommendations. Fund comparisons (such as this one) are not conducted to identify the “best” fund (since that will vary from investor to investor based on investor-specific factors). Rather, these fund comparison posts are designed to identify and distinguish between the fund details that matter versus the ones that don’t.

The Short Answer

VTV only owns large-cap stocks that are classified as value stocks. VTI owns a more diverse portfolio of all market caps and investment styles. Historical performance has been similar, but will depend on how the value factor performs moving forward.

The Long Answer

Historical Performance: VTV vs VTI

Since their common inception in 2004, performance has been relatively similar with an annualized difference of roughly 1%. This has compounded over time though and the cumulative performance differential is about 115%!

As the VTV vs VTI chart shows, the value factor has really underperformed the broader market since their common inception. However, this did change in 2022 as lines begin to converge again. It is anyone’s guess whether growth or value will perform better in the future.

Differences Between VTV and VTI

The primary difference between these two funds is that VTV tracks the CRSP US Large Cap Value Index, while VTI tracks the broader CRSP US Total Market Index.

Geographic Exposure

Both VTV and VTI hold essentially 100% US stocks, so I will not dig into country exposures or market classification here. For all intents and purposes, the two funds have identical country exposures.

Market Cap Exposure

Overall, the market cap exposures of VTV and VTI are relatively similar.

VTVVTI
Large Cap76%72%
Mid Cap24%20%
Small Cap0%9%
Source: ThoughtfulFinance.com, Morningstar (as of 4/30/2023)

Sector Weights

There are some significant differences in sector weights, which makes sense based on the fact that VTV is targeting the value factor and some sectors meet the value factor criteria more easily.

VTVVTI
Basic Materials2.81%2.56%
Consumer Cyclical2.52%10.39%
Financial Services19.54%12.79%
Real Estate3.11%3.29%
Communication Services4.94%7.61%
Energy7.96%5.06%
Industrials12.60%8.76%
Technology8.69%23.76%
Consumer Defensive11.91%7.13%
Health Care20.06%14.75%
Utilities5.87%2.94%
Source: ThoughtfulFinance.com, Morningstar (as of 4/30/2023)

Expenses

VTV’s expense ratio is .04%, while VTI’s expense ratio is .03%. Yes, VTV is .33% more expensive than VTI, but we’re talking about 1 basis point! This in an non-issue in my opinion.

Transaction Costs

ETFs are free to trade at many brokers and custodians, so both VTV and VTI should be free to trade in most cases. Additionally, these funds are among the largest ETFs and are very liquid. The bid-ask spread of both VTV and VTI is very low, so individual investor trades will not generally be large enough to “move” the market.

Tax Efficiency & Capital Gain Distributions

ETFs are typically more tax-efficient than mutual funds, due to their ability to avoid realizing capital gains through like-kind redemptions (a process that is beyond the scope of this post). Neither VTV nor VTI has ever made a capital gains distribution (nor do I expect them to moving forward). Thus, these funds are about as tax-efficient as any fund can be and either fund is appropriate in taxable accounts.

Final Thoughts: VTV vs VTI

Both funds are great ETFs that do what they are designed to do. Generally speaking, I do not think factor ETFs should be the core of a portfolio. For a core position, I would personally choose VTI every time. However, investors looking for a satellite position in order to tilt their portfolio towards value could do a lot worse than using VTV. At the end of the day, these two funds are not necessarily comparable because they play very different roles in a portfolio.

Curious readers who want to read about VTV’s growth-oriented counterpart can read my comparison of VUG vs VTI here.

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