VEA vs. SPGM: Which Global Stock ETF Is the Better Buy?
VEA charges rock-bottom fees and pays a higher dividend yield, though SPGM has posted stronger returns over the past five years.
Overview
For investors seeking international diversification, the choice between these two funds comes down to geographic scope. The Vanguard FTSE Developed Markets ETF (NYSEMKT:VEA) excludes American companies entirely, making it a useful fund for balancing out a U.S.-heavy portfolio. The State Street SPDR Portfolio MSCI Global Stock Market ETF (NYSEMKT:SPGM), on the other hand, includes the U.S. alongside international markets, positioning it as a potential all-in-one core holding.
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-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Details
With an expense ratio of 0.03%, VEA is notably cheaper to own than SPGM. VEA also pays a higher dividend yield of 2.54%, nearly three-quarters of a percentage point more than SPGM’s 1.80%
Source
Originally published at www.fool.com.