Looking Beyond the S&P 500? These 2 International ETFs Offer Very Different Opportunities
Key PointsState Street SPDR Portfolio Developed World ex-US ETF offers exposure to established international economies, with a lower expense ratio and higher dividend yield.
When considering international diversification, investors often face a choice between established developed markets and higher-growth emerging economies. State Street SPDR Portfolio Developed World ex-US ETF (SPDW) and iShares Core MSCI Emerging Markets ETF (IEMG) are two options that offer unique opportunities. SPDW targets major economies such as Japan, the United Kingdom, and Canada, with a lower expense ratio of 0.03%.
It boasts a higher dividend yield of 3.1% and focuses on financial services, industrials, and technology sectors. Its top holdings include Samsung Electronics, ASML Holding, and SK Hynix. On the other hand, IEMG provides exposure to developing nations like China, India, and Brazil, with a higher expense ratio of 0.09%. This ETF has a significant technology focus at 42%, followed by financial services at 21% and consumer cyclicals at 8%.
Key holdings include Taiwan Semiconductor Manufacturing, Samsung Electronics, and SK Hynix. While both funds offer international diversification, State Street SPDR Portfolio Developed World ex-US ETF appears to be the better choice for long-term investors due to its lower costs, higher dividend yield, and exposure to established international economies.
However, IEMG may provide greater upside potential, given its substantial technology exposure. Investors seeking a more balanced combination of income, cost efficiency, and long-term growth potential may find State Street's ETF more suitable.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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