Vanguard VEA ETF Boasts Broader Portfolio Than State Street's SPDR SPDW

SPDR Portfolio Developed World ex-US ETF and Vanguard FTSE Developed Markets ETF both offer ultra-low costs and similar recent returns, but VEA stands out for its broader portfolio and much larger assets under management (AUM).

Both the SPDR Portfolio Developed World ex-US ETF (NYSEMKT:SPDW) and the Vanguard FTSE Developed Markets ETF (NYSEMKT:VEA) target developed international equities outside the United States, appealing to investors seeking global diversification. Here’s how these two widely held, low-cost funds compare on cost, performance, and portfolio breadth.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; figures use five-year weekly returns.

Both exchange-traded funds are equally affordable, charging just 0.03% in annual expenses. VEA has a slightly higher dividend yield at 2.7% versus 2.6%, offering a marginally larger income stream for investors.

Performance & risk comparison

What's inside

The Vanguard FTSE Developed Markets ETF tracks a broad universe of nearly 3,900 developed-market stocks, spanning large-, mid-, and small-cap companies across Canada, Europe, and the Pacific. Its sector allocation leans most heavily toward financial services (24%), industrials (19%), and technology (11%). Top holdings include ASML Holding, Samsung Electronics, and Sap, each making up a small fraction of the fund. Its full-replication approach and 18.3-year history could appeal to those who value breadth and index purity.

By contrast, SPDW holds about 2,400 securities (as of Oct. 29, 2025) and focuses on developed markets ex-US, with financial services (23%), industrials (19%), and technology (10%) as its biggest sectors. Some of its top positions include Nestle, Toyota Motor, and Novartis, but its top three match that of VEA, as of Oct. 30, 2025. Neither fund has structural quirks.

For more guidance on ETF investing, check out the full guide at this link.

Foolish take

The SPDR ETF is administered by the widely respected investment management company State Street. Vanguard is also very well known for its low-cost mutual funds and ETFs. Deciding between these funds is a personal decision based on an investor's desired portfolio allocation.

The top three holdings for each fund are identical. Beyond that, the VEA ETF spreads its holdings more broadly. As mentioned, it holds more stocks. VEA's concentration is spread with the following regional allocation:

• Europe - 52%
• Pacific - 35%
• North America - 11%

SPDW has more than half its holdings in Japan, the U.K., Canada, and France.

With similar returns and dividend yields, investors should base any decision between these two ETFs on where the remainder of a portfolio is concentrated. The good news is that both administrators are sound investment management companies.

Glossary

ETF: Exchange-traded fund; a basket of securities traded on an exchange like a stock.
Expense ratio: Annual fee, expressed as a percentage, that a fund charges to manage investors' money.
Dividend yield: Annual dividends paid by a fund or stock divided by its current price, shown as a percentage.
Beta: A measure of an investment's volatility compared to the overall market, typically the S&P 500.
AUM: Assets under management; the total market value of assets a fund manages for investors.
Max drawdown: The largest percentage drop from a fund's peak value to its lowest point over a specific period.
Full-replication: An index fund strategy where the fund holds all securities in its target index in the same proportions.
Sector allocation: The distribution of a fund's investments across different industry sectors.
Large-cap, mid-cap, small-cap: Categories of companies based on market capitalization: large (biggest), mid (medium), small (smaller companies).
Developed markets: Countries with advanced economies and established financial markets, such as Japan, Canada, and Western Europe.
Index purity: How closely a fund matches the composition and performance of its target index.

Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML and Vanguard FTSE Developed Markets ETF. The Motley Fool recommends Nestlé. The Motley Fool has a disclosure policy.