One Global Fund or a Clearer Bet on International Markets? VXUS vs. SPGM

Core Insights - Vanguard Total International Stock ETF (VXUS) is recognized for its lower cost, higher yield, and substantial assets under management (AUM), while State Street SPDR Portfolio MSCI Global Stock Market ETF (SPGM) focuses more on technology and has shown stronger growth over the past five years [1][2]. Cost and Size Comparison - VXUS has an expense ratio of 0.05% compared to SPGM's 0.09% - The one-year return for VXUS is 34.7%, while SPGM's is 25.2% - VXUS offers a dividend yield of 2.9%, significantly higher than SPGM's 1.8% - VXUS has a beta of 0.73, indicating lower volatility compared to SPGM's beta of 0.90 - VXUS manages $617.73 billion in assets, whereas SPGM has $1.5 billion [3][4]. Performance and Risk Comparison - Over the past five years, VXUS experienced a maximum drawdown of -29.43%, while SPGM had a drawdown of -25.92% - An investment of $1,000 in VXUS would have grown to $1,329, while the same investment in SPGM would have grown to $1,556 [5]. Fund Composition - SPGM tracks a broad global index with a 27% allocation to technology and holds approximately 2,939 stocks, with major positions in Nvidia, Apple, and Microsoft [6]. - VXUS excludes U.S. stocks and invests in over 8,602 international companies, focusing on financial services, technology, and industrials, with smaller top holdings [7]. Investment Implications - Investors often seek international funds to reduce exposure to dominant U.S. stocks, influencing the choice between VXUS and SPGM - VXUS provides diversification away from the U.S., while SPGM maintains a significant U.S. presence in its portfolio [8][11].