The State Street SPDR Portfolio Developed World ex-US ETF (NYSEMKT:SPDW) focuses strictly on developed economies with a razor-thin fee, while the Vanguard Total International Stock ETF (NASDAQ:VXUS) provides broader global coverage by including emerging markets.
Both State Street SPDR Portfolio Developed World ex-US ETF and Vanguard Total International Stock ETF serve as core building blocks for international equity exposure. While the SPDR fund targets developed markets to maintain a lower cost profile, the Vanguard fund provides a much wider net. With $163.2 billion in assets under management (AUM), the Vanguard fund is significantly larger, though both offer deep liquidity for long-term investors.
Snapshot (cost & size)
Metric
VXUS
SPDW
Issuer
Vanguard
SPDR
Share price
$82.59 (as of 2026-11-02)
$49.45 (as of 2026-11-02)
Expense ratio
0.05%
0.03%
1-yr return (as of 2026-11-02)
13.5%
17.3%
Dividend yield
2.4%
3.1%
Beta
0.79
0.86
AUM
$163.2B
$41.1B
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 as of the close of the trading day of Nov. 2, 2026.
The SPDR portfolio is slightly more affordable, with an expense ratio of 0.03%. It also provides a higher payout for income-seeking investors, maintaining a yield gap of 0.66 percentage point over the Vanguard fund.
Performance & risk comparison
Metric
VXUS
SPDW
Max drawdown (5 yr)
(28.8%)
(29.8%)
Growth of $1,000 over 5 years (total return)
$1,463
$1,526
What's inside
The State Street SPDR Portfolio Developed World ex-US ETF provides exposure to established economies outside the U.S., with its portfolio concentrated in financial services at 24%, industrials at 17%, and technology at 15%. It holds 2,420 assets, and its largest positions include Sk Hynix (NASDAQ:SKHY) at 1.9%, and ASML Holding (NASDAQ:ASML) at 1.85%, and Roche Holding at 1%. The fund was launched in 2007. State Street SPDR Portfolio Developed World ex-US ETF has paid $1.52 per share over the trailing 12 months, which, on its recent ~$49.45 share price, works out to a 3.1% yield.
Vanguard Total International Stock ETF provides broader exposure by including both developed and emerging markets, holding 8,901 stocks. Its largest positions include Taiwan Semiconductor Manufacturing Co. Ltd. at 4.3%, Samsung Electronics Co. Ltd. at 2%, and SK Hynix at 1.7%. The portfolio is weighted toward financial services 23%, technology 21%, and industrials 15%. The fund was launched in 2011. Vanguard Total International Stock ETF has paid $1.98 per share over the trailing 12 months, which on its recent ~$82.6 share price works out to a 2.4% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy?
Properly diversified American investors should be aiming to hold some non-U.S. equities in their portfolios. Each of these ETFs offers exposure to a vast selection of non-U.S. stocks, but they have key differences to take into account.
The Vanguard fund, VXUS, seeks to invest across world markets, except for the U.S. Its assets are invested about 82% in non-U.S. developed markets and the balance, 18%, in emerging markets, which should theoretically offer greater long-term returns (in exchange for higher risk).
Regionally, the bulk of VXUS is invested in Asian stocks, about 12% in economies considered emerging, like Indonesia, and 18% of the overall portfolio in developed Asia stocks, which includes Singapore. Another 16% of the portfolio is invested in Japanese stocks, which are categorized separately from developed Asian economies in fund data.
VXUS is mainly allocated to large-cap stocks, at 79% of assets, just about equally split between value and growth style equities. About 17% of the funds are in mid-cap stocks, and 5% is invested in small caps.
The fund isn't too weighted in its biggest names either, which is a plus for diversification. About 14% of VXUS assets sit in its top 10 holdings.
The State Street fund, SPDW, is heavily concentrated in Europe and Japan, which makes sense given the importance of those economies in the overall world picture. The fund is about 23% allocated in the eurozone, with another 13% in European countries outside the eurozone, which includes the likes of Switzerland and the U.K. Japan comprises nearly 22% of the portfolio. Other large presences in the portfolio include Canada at 11% and Australia at 6% of assets.
Some 80% of the SPDW ETF is in large-cap stocks, roughly equally split between growth and value names. That means the fund owns the biggest names in the economies it is invested in. That doesn't mean it's overweight in its top holdings; just about 12% of the assets are dedicated ot its top 10 holdings.
So which international ETF is the right choice? If all other considerations are equal for your portfolio, then go with long-term performance.
SPDW has returned an annualized 22%, 9%, and 10% over the 3-year, 5-year, and 10--year time frames, respectively.
VXUS has gifted investors 20%, 8%, and 9% annualized returns over the 3-year, 5-year, and 10-year lookbacks.
In this case, SPDW is the better performer in every time frame. That doesn't mean it will continue to be--the future is unknowable, after all--but with roughly similar risk attributes and expenses as its Vanguard rival. The State Street SPDW ETF is the better choice.
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Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML. The Motley Fool has a disclosure policy.
SPDW vs VXUS: Is a State Street or Vanguard International ETF the Better Fit for Your Portfolio? was originally published by The Motley Fool
