Which Is the Better International ETF, State Street's SPDW Targeting Developed Markets or Vanguard's Emerging Markets-Focused VWO?
Key takeaways
- Investors looking for international diversification often choose between developed and emerging markets.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
- The State Street fund is more affordable than the Vanguard fund.
VWO ^GSPC The State Street SPDR Portfolio Developed World ex-US ETF (NYSEMKT:SPDW) offers a lower-cost path to international exposure through established markets, while the Vanguard FTSE Emerging Markets ETF (NYSEMKT:VWO) provides access to developing economies with higher volatility.
Investors looking for international diversification often choose between developed and emerging markets. SPDW tracks established economies outside the United States, while VWO targets regions with faster growth potential but higher political and economic risk. Both serve as foundational building blocks for a global portfolio.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.