The Vanguard FTSE Developed Markets ETF (VEA) Offers Broader Diversification Than the SPDR Portfolio Developed World ex-US ETF (SPDW)

Core Insights - Both the SPDR Portfolio Developed World ex-US ETF (SPDW) and the Vanguard FTSE Developed Markets ETF (VEA) provide investors with exposure to developed international equities, excluding the U.S. [1] Cost & Size Comparison - Both SPDW and VEA have an expense ratio of 0.03% [2][3] - As of October 28, 2025, SPDW has a 1-year return of 21.4% while VEA has a return of 21.2% [2] - VEA offers a slightly higher dividend yield of 2.7% compared to SPDW's 2.6% [3] - Assets Under Management (AUM) for SPDW is $32.0 billion, while VEA has a significantly larger AUM of $250.8 billion [2] Performance & Risk Comparison - Over the past five years, SPDW experienced a maximum drawdown of -30.20%, while VEA had a drawdown of -29.71% [4] - A $1,000 investment in SPDW would have grown to $1,546 over five years, compared to $1,555 for VEA [4] Portfolio Composition - VEA holds approximately 3,873 stocks and is diversified across sectors such as Financial Services (24%), Industrials (19%), and Technology (11%) [5] - SPDW covers 2,405 holdings with a similar sector allocation: Financial Services at 23%, Industrials at 19%, and Technology at 10% [6] - VEA's larger asset base and stock count may appeal to investors seeking maximum diversification [6] Long-term Performance - Over the past decade, VEA has achieved a total return of 115.6%, while SPDW has a total return of 114.4% [9] - In comparison, the Vanguard 500 Index Fund ETF has delivered a total return of 291% over the same period, highlighting the relative underperformance of both international ETFs [10]