Invest Outside the U.S. With These Top International ETFs

Core Insights - The Vanguard FTSE Developed Markets ETF (VEA) and the SPDR Portfolio Developed World ex-US ETF (SPDW) provide low-cost exposure to developed markets outside the U.S., making them suitable for international diversification [2][10] - VEA is significantly larger than SPDW, with $260 billion in assets under management (AUM) compared to SPDW's $33.5 billion, and offers a slightly higher yield [4][11] Cost and Size Comparison - Both ETFs have an identical expense ratio of 0.03% [4] - VEA has a 1-year total return of 35.9%, while SPDW has a return of 35.2% as of December 30, 2025 [4] - VEA's dividend yield is not available, while SPDW offers a yield of 2.3% [4] Performance and Risk Analysis - Over the past five years, VEA has a maximum drawdown of -29.71%, while SPDW's is -30.23% [6] - The growth of $1,000 invested over five years would result in $1,308 for VEA and $1,302 for SPDW [6] - Cumulative growth for VEA is 55.2%, compared to SPDW's 53.4% [12] Portfolio Composition - VEA includes 3,864 stocks, while SPDW has 2,390 holdings, indicating broader diversification in VEA [7][8] - VEA's largest sector weights are in financial services, industrials, and technology, with top holdings including ASML Holding, Samsung Electronics, and AstraZeneca [7] - SPDW also has similar top holdings but is more tilted towards Swiss multinationals like Roche and Novartis [8] Investment Implications - Both ETFs serve as effective tools for portfolio diversification and hedging against U.S. economic downturns [10] - The primary distinction lies in their portfolio sizes and compositions, with VEA focusing more on large-cap stocks [11]