IEFA vs. SPDW: Broad International Exposure With Different Portfolio Designs

Core Insights - IEFA and SPDW both provide broad access to developed markets outside the United States, but they have different portfolio structures and cost profiles [4][6][7] Fund Overview - IEFA holds 2,589 stocks with a sector mix of financial services (22%), industrials (20%), and healthcare (11%), and has nearly $169 billion in assets under management (AUM) [1] - SPDW includes 2,390 holdings with sector weights of financial services (23%), industrials (19%), and technology (11%) [2] Performance and Cost - SPDW has a lower expense ratio of 0.03% compared to IEFA's 0.07%, while IEFA offers a slightly higher dividend yield of 3.4% versus SPDW's 3.2% [3] - The beta for both funds measures price volatility relative to the S&P 500, with the 1-year return representing total return over the trailing 12 months [3] Investment Strategy - IEFA follows the MSCI EAFE framework, primarily allocating exposure to Europe and Japan, while SPDW tracks a developed ex U.S. index that includes Canada [6] - The choice between IEFA and SPDW depends on how international exposure fits into an investor's overall portfolio strategy, with IEFA appealing to those seeking a traditional EAFE allocation and SPDW attracting those looking for broader coverage and lower costs [7]