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State Street’s SPDW offers developed-market ex-US exposure at a 0.03% expense ratio, while Vanguard’s VXUS provides broader geographic diversification by including emerging markets. The comparison highlights a trade-off between SPDW’s lower cost and VXUS’s wider coverage for international allocations.
State Street’s SPDW vs. Vanguard’s VXUS: Comparing Two International ETF Approaches
State Street’s SPDR Portfolio Developed World ex-US ETF (SPDW) and Vanguard’s Total International Stock ETF (VXUS) offer different approaches to international equity exposure, according to a comparison published by fool.com.
Coverage differences
SPDW focuses exclusively on developed markets outside the United States. VXUS, by contrast, provides broader geographic diversification by including emerging markets across what the source describes as its massive portfolio.
Cost comparison
The two funds differ on expenses as well. SPDW offers a lower expense ratio of 0.03%, while the source does not specify VXUS’s expense ratio.
The trade-off
The comparison frames the choice between the two funds as a trade-off:
- SPDW: Lower cost, but limited to developed markets ex-US.
- VXUS: Broader geographic reach that includes emerging markets, but without SPDW’s lower stated expense ratio.
Investors weighing an international allocation therefore face a decision between SPDW’s lower cost and VXUS’s wider coverage, based on the source material.