Vanguard VEA vs. State Street SPDW: Which Developed Markets ETF Wins This Tight Race?
Both charge 0.03% in fees, but SPDW yields 3% while VEA offers nearly 3,900 holdings for broader diversification.
Overview
Vanguard FTSE Developed Markets ETF (NYSEMKT:VEA) and State Street SPDR Portfolio Developed World ex-US ETF (NYSEMKT:SPDW) offer nearly identical low-cost exposure to developed markets outside the U.S. with minor differences in yield and diversification.
Investors seeking international diversification often look to developed markets to balance domestic portfolios. Both the Vanguard fund and the State Street fund provide comprehensive coverage of Europe, Canada, and the Pacific region. By excluding U.S. equities, these funds allow for targeted exposure to mature economies, which can help in diversifying and potentially reducing country-specific investment risks within a broader portfolio.
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.
Details
Source
Originally published at www.fool.com.