SPDR Portfolio Developed World ex-US ETF

SPDW

Market cap $34.7B

SPDW has a lower expense ratio and slightly stronger one-year return than IEFA IEFA holds more stocks and has significantly higher assets under management Both ETFs share similar sector tilts, but SPDW's top holdings are more diversified by country We're bullish on these 10 stocks ›

Both funds match each other on cost but Vanguard FTSE Developed Markets ETF holds more assets and more stocks. VEA slightly outperformed on 1-year and 5-year growth.

IEFA has significantly more assets than SPDW. SPDW is less expensive to own, while IEFA offers a modestly higher dividend yield.

SPDR Portfolio Developed World ex-US ETF and Vanguard FTSE Developed Markets ETF both earn buy ratings for global diversification and value. SPDW offers marginally superior risk-adjusted performance and lower volatility due to its optimized sampling, excluding micro-caps and focusing on core developed nations. Both ETFs provide lower P/E ratios than US markets, strong exposure to Japan's corporate reforms, and sectoral positioning in industrials and tech hardware.

Although many ETF investors believe the Fed's December rate meeting is the final hurdle to clear in 2025, there are increasing signs that a new market cycle is already underway. Astoria Portfolio Advisors founder, CEO and CIO John Davi and LionShares CEO Sofia Massie sit down with CNBC's Contessa Brewer on “ETF Edge” to discuss the best way to position a portfolio as we near the end of the year, the set-up for 2026, key trends to watch for, and why it's important to look beyond the Mag 7.

Known to many for supporting ETF institutional investors that favor liquidity, State Street Investment Management has increasingly grown its ETF business by focusing on advisors and retail investors. With the launch today of a new low-cost ultra-short bond ETF, the firm has further supported that community.

SPDR® Portfolio Developed World ex-US ETF offers low-cost, diversified international equity exposure, tracking the S&P Developed Ex-US BMI Index. SPDW has outperformed broad indices, like the VTI and SPY, over the past year, benefiting from favorable international market dynamics and currency tailwinds. The ETF's broad sector and country diversification, strong liquidity, and minimal expense ratio make SPDW a compelling core holding for global portfolios.

Global equity funds saw $10.65B inflows as Fed rate cut bets, a weak dollar and diversification needs drive investors abroad.

I maintain a buy rating on SPDW, citing its low valuation, strong momentum, and technical breakout above long-term resistance. SPDW is outperforming the S&P 500 YTD, with attractive Sharpe ratios and a 2.88% yield, boosted by a weak dollar tailwind. The ETF offers broad exposure to developed markets, low expenses, high liquidity, and a favorable risk profile compared to US equities.

Uncertainty continues to define the investing landscape. Finding the best ETFs highlights the challenge of making money amid so many unknowns.