SPDR Portfolio Developed World ex-US ETF

SPDW

Market cap $30.5B

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.

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The SPDR Portfolio Developed World ex-US ETF invests in non-US stocks, primarily in Japan, the United Kingdom, and Canada. SPDW's portfolio is more attractively valued relative to the S&P 500, partially driven by an overweight position in Financial stocks. The unraveling of the carry trade strategy highlights the appeal of non-US stocks for US investors.

On this week's episode of ETF Prime, host Nate Geraci and VettaFi Investment Strategist Cinthia Murphy explore five ETF categories potentially benefiting from recent market turmoil. Later, Geraci welcomes industry veteran Tom Lydon to discuss the current ETF landscape.

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The SPDR Portfolio Developed World ex-US ETF tracks international equities primarily in Japan, the UK, Canada, France, and Switzerland. The ETF's holdings are well diversified and do not come with the concentration risks stalking the S&P 500. SPDW is overweight cyclical sectors such as financials, industrials, and materials. The ETF is underweight information technology and communication services.