Breaking Up With U.S. Stocks? SPDW Offers Lower Costs and Higher Yield Than ACWX.

Core Viewpoint - The SPDR Portfolio Developed World ex-US ETF (SPDW) and iShares MSCI ACWI ex US ETF (ACWX) offer distinct investment strategies, with SPDW providing lower fees and higher yields, while ACWX offers broader non-U.S. equity exposure and a higher technology allocation [1][2]. Cost and Size Comparison - SPDW has an expense ratio of 0.03%, significantly lower than ACWX's 0.32% [3][10]. - As of January 9, 2026, SPDW's one-year return is 37.84%, compared to ACWX's 35.89% [3][10]. - SPDW has a dividend yield of 3.3%, higher than ACWX's 2.83% [3][10]. - Assets under management (AUM) for SPDW is $33.45 billion, while ACWX has $7.87 billion [3]. Performance and Risk Comparison - Over the past five years, SPDW has a maximum drawdown of -30.23%, slightly worse than ACWX's -30.03% [4]. - An investment of $1,000 would have grown to $1,304 in SPDW and $1,251 in ACWX over five years [4]. Holdings and Sector Allocation - ACWX holds 1,751 stocks, with a sector allocation of 25% in financial services, 15% in technology, and 15% in industrials [5]. - Major holdings in ACWX include Taiwan Semiconductor Manufacturing (3.9%), ASML (1.53%), and Tencent Holdings (1.4%) [5]. - SPDW focuses on developed markets, with a sector allocation of 23% in financial services, 19% in industrials, and 11% in technology [7]. - Key positions in SPDW include ASML (1.73%), Samsung (1.65%), and Roche (0.98%) [7]. Investment Implications - Investors seeking exposure to emerging markets and technology may prefer ACWX, particularly due to its holdings like TSMC, which has seen significant growth [12]. - Conversely, those looking for lower-cost access to developed markets and higher dividend yields may find SPDW more appealing [12].