ACWX vs. SPGM: Choosing Between Strong International Exposure Or Emerging MarketsETF Compare Against an Emerging Markets ETF

Core Insights - The article compares two ETFs, SPDR Portfolio MSCI Global Stock Market ETF (SPGM) and iShares MSCI ACWI ex U.S. ETF (ACWX), highlighting their different approaches to international equity exposure [2] Cost and Size - SPGM has a lower expense ratio of 0.09% compared to ACWX's 0.32% [3] - As of January 23, 2026, SPGM's one-year return is 20.62%, while ACWX's is significantly higher at 31.86% [3] - SPGM offers a dividend yield of 1.83%, whereas ACWX provides a higher yield of 2.7% [4] - SPGM has assets under management (AUM) of $1.4 billion, while ACWX has a larger AUM of $8.45 billion [3] Performance and Risk Comparison - Over five years, SPGM's maximum drawdown is -25.92%, while ACWX's is -30.06% [5] - An investment of $1,000 in SPGM would grow to $1,566 over five years, compared to $1,267 for ACWX [5] Portfolio Composition - ACWX focuses on large- and mid-cap companies outside the U.S., with 25% of its portfolio in the financial sector and significant allocations in technology and industrials [6] - SPGM invests in both developed and emerging markets, including the U.S., with a technology tilt of 23% and notable weights in financial services (16%) and industrials (12%) [7] - ACWX holds 1,796 stocks, with top positions in Taiwan Semiconductor Manufacturing, Tencent Holdings, and ASML Holding [6] - SPGM has a broader diversification with 2,918 total stocks, including top holdings in Nvidia, Apple, and Microsoft [7] Investor Considerations - U.S. investors should be aware of the risks associated with ACWX, which primarily holds non-American stocks that may exhibit different volatility patterns compared to U.S. stocks [8] - Four of ACWX's top five holdings are Asian companies, while all of SPGM's top five holdings are American companies [9] - Both funds pay dividends semi-annually, which may be less convenient for investors who prefer quarterly payouts [10]