Better Global ETF Buy: Can Investors Earn More with IEFA or SPGM?

Core Insights - The State Street SPDR Portfolio MSCI Global Stock Market ETF (SPGM) and the iShares Core MSCI EAFE ETF (IEFA) provide diversified international equity exposure but differ in their market focus and investment strategies [1] Cost & Size Comparison - SPGM has an expense ratio of 0.09% while IEFA has a slightly lower expense ratio of 0.07% [2] - As of February 5, 2026, SPGM's 1-year return is 20.00% compared to IEFA's 27.59% [2] - SPGM offers a dividend yield of 1.83%, whereas IEFA provides a higher yield of 3.38% [2] - SPGM has assets under management (AUM) of $1.5 billion, significantly smaller than IEFA's $172 billion [2] Performance & Risk Comparison - Over the past five years, SPGM experienced a maximum drawdown of -25.92%, while IEFA had a higher drawdown of -30.37% [4] - An investment of $1,000 in SPGM would have grown to $1,539 over five years, compared to $1,332 for IEFA [4] Fund Composition - IEFA focuses on developed markets outside the U.S. and Canada, with 2,588 holdings primarily in financial services (23%) and industrials (20%) [5] - SPGM includes both developed and emerging market equities, with a notable technology tilt of 25% and top holdings in Nvidia, Apple, and Microsoft [6] Investment Implications - Both SPGM and IEFA offer distinct benefits for investors seeking international exposure, with SPGM providing broader global market coverage and IEFA focusing on stability in developed markets [7][8]