VEA vs. SPGM: Which Global Stock ETF Is the Better Buy?
Key Points
The State Street SPDR Portfolio MSCI Global Stock Market ETF (SPGM) includes U.S. exposure, while the Vanguard FTSE Developed Markets ETF (VEA) excludes it.
VEA offers a lower expense ratio and a higher dividend yield than SPGM.
SPGM has a higher allocation to technology companies than VEA, which leans more heavily into financial services and industrials.
- 10 stocks we like better than Vanguard FTSE Developed Markets ETF ›
For investors seeking international diversification, the choice between these two funds comes down to geographic scope. The Vanguard FTSE Developed Markets ETF (NYSEMKT:VEA) excludes American companies entirely, making it a useful fund for balancing out a U.S.-heavy portfolio. The State Street SPDR Portfolio MSCI Global Stock Market ETF (NYSEMKT:SPGM), on the other hand, includes the U.S. alongside international markets, positioning it as a potential all-in-one core holding.
Snapshot (cost & size)
| Metric | VEA | SPGM |
|---|---|---|
| Issuer | Vanguard | State Street |
| Expense ratio | 0.03% | 0.09% |
| 1-year return (as of July 24, 2026) | 23.46% | 21.22% |
| Dividend yield | 2.54% | 1.80% |
| Beta | 0.97 | 1.00 |
| AUM | $316.3 billion | $1.8 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
With an expense ratio of 0.03%, VEA is notably cheaper to own than SPGM. VEA also pays a higher dividend yield of 2.54%, nearly three-quarters of a percentage point more than SPGM’s 1.80%
Performance & risk comparison
| Metric | VEA | SPGM |
|---|---|---|
| Max drawdown (5 yr) | (29.71%) | (25.92%) |
| Growth of $1,000 over 5 years (total return) | $1,577 | $1,675 |
What's inside
Launched in 2012, SPGM aims to track the total return of the global market, holding 2,927 stocks spread across both developed and emerging economies. Its largest positions include Nvidia (NASDAQ:NVDA) at 4.1%, Apple (NASDAQ:AAPL) at 3.7%, and Microsoft (NASDAQ:MSFT) at 2.3%. Because it spans the full range of market capitalizations and geographies, its approach may help smooth out some country-specific risk. Its sector mix is heavily concentrated in technology at 30.7%, followed by financial services at 16.5% and industrials at 12.7%.
The Vanguard fund holds 3,868 stocks across developed markets outside the U.S., including Canada, Europe, and the Pacific region. Its top holdings include Samsung Electronics (KOSE:A005930) at 3.1%, SK hynix (NASDAQ:SKHY) at 3.0%, and ASML Holding (NASDAQ:ASML) at 2.3%. Unlike SPGM, it leans more heavily into value-oriented sectors -- financial services account for 23.1% of the portfolio, with technology at 18.4% and industrials at 17.9%. VEA was launched in 2007.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
The right choice between VEA and SPGM really comes down to what's already in your portfolio. If you're a U.S.-heavy investor -- and most American retail investors are -- VEA can be a clean way to add international diversification without paying for U.S. exposure you already own through other holdings. Its rock-bottom 0.03% expense ratio and 2.54% yield make it an efficient, income-friendly option.
SPGM serves a different purpose. Because it blends U.S. and international stocks into a single fund, it's better suited to someone building a portfolio from scratch or looking for one-ticket global exposure, rather than someone layering international stocks on top of their existing U.S. core holdings.
Each fund’s sector allocations are important to understand as well. SPGM's heavier weighting in technology names like Apple and Nvidia gives it more exposure to the same growth-stock momentum that's driven much of the U.S. market in recent years -- which helps explain its stronger five-year performance. VEA's stronger tilt toward financial services and industrials, along with its exposure to semiconductor giants like Samsung and ASML, gives it a more cyclical flavor.
Bottom line: each of these funds was built to play a different role. Investors would do well to think less about which ETF “wins” and more about which gap each fund is meant to fill in a diversified portfolio.
Should you buy stock in Vanguard FTSE Developed Markets ETF right now?
Before you buy stock in Vanguard FTSE Developed Markets ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard FTSE Developed Markets ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of July 25, 2026.
Andy Gould has positions in Apple and Nvidia and has the following options: long January 2027 $125 calls on Nvidia, short August 2026 $355 calls on Apple, and short January 2027 $125 puts on Nvidia. The Motley Fool has positions in and recommends ASML, Apple, Microsoft, Nvidia, and Vanguard FTSE Developed Markets ETF. The Motley Fool has a disclosure policy.
Recommended Articles
