Global Markets (SPGM) or Emerging Growth (IEMG)? Which Fund is the Right Choice?
Both funds charge identical 0.09% fees, but IEMG delivered 29.7% trailing returns versus SPGM's 20.8%, though with steeper volatility and drawdowns.
Overview
State Street SPDR Portfolio MSCI Global Stock Market ETF (NYSEMKT:SPGM) provides broad, all-cap global exposure, whereas the iShares Core MSCI Emerging Markets ETF (NYSEMKT:IEMG) focuses exclusively on developing economies, with a heavy tilt toward Asian technology.
Choosing between these two depends on whether an investor requires a total world equity solution or a targeted satellite for developing markets. While both offer exceptionally low costs, SPGM captures developed and emerging markets in one package, whereas IEMG serves as a deep dive into growth-heavy developing regions that often see higher price swings.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.