ACWX vs. SPGM: Choosing Between Strong International Exposure Or Emerging MarketsETF Compare Against an Emerging Markets ETF

Both the SPDR Portfolio MSCI Global Stock Market ETF (NYSEMKT:SPGM) and iShares MSCI ACWI ex U.S. ETF (NASDAQ:ACWX) provide diversified international equity exposure, but their approaches and compositions differ. This comparison unpacks their key differences in cost, returns, sector allocations, and portfolio makeup to help investors decide which may suit their global investing goals.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.

SPGM is more affordable with its lower 0.09% expense ratio, while ACWX charges 0.32% but compensates with a higher 2.7% dividend yield compared to SPGM’s 1.8% payout.

Performance & risk comparison

What's inside

ACWX tracks large- and mid-cap companies outside the United States, with the financial sector accounting for 25% of its portfolio, followed by technology and industrials at about 15% each. It holds 1,796 stocks, with top positions in Taiwan Semiconductor Manufacturing (2330.TW), Tencent Holdings Ltd (0700.HK), and Asml Holding Nv (AMS:ASML.AS), and has a fund age of 17.8 years.

SPGM, by contrast, invests across both developed and emerging markets, including the U.S, giving it a technology tilt (23%) and significant weights in financial services (16%) and industrials (12%). Its top holdings include Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT), with 2,918 total stocks for broader diversification.

What this means for investors

While both ETFs have their pros and cons, investors in the U.S. should be aware of the risks associated with investing in an ETF such as ACXW, which primarily holds non-American stocks. International stocks can move very differently from U.S. stocks and exhibit volatility that U.S. investors may not be used to, as those foreign stocks may move more closely in line with the relevant country’s economic and political structures and events.

Four of ACXW’s top five holdings are Asian companies, while all of SPGM’s top five holdings are American companies. U.S. investors may want to keep an eye on relevant events in the relevant foreign country or continent to better understand the companies and their stock.

Investors should also be aware of the dividend payout frequency for both funds, as they pay semi-annually rather than the common quarterly payout. In addition, the two ETFs have struggled to maintain consistent dividend payouts or to increase them over time. And with the longer wait times for semi-annual payouts, this can be inconvenient for investors who prioritize consistent dividend payments.

Glossary

ETF: Exchange-traded fund that holds a basket of securities and trades on stock exchanges like a stock.
Expense ratio: Annual fund operating costs expressed as a percentage of the fund's average assets.
Dividend yield: Annual dividends paid by a fund divided by its current share price, shown as a percentage.
Beta: Measure of how volatile an investment is compared with the overall stock market, typically the S&P 500.
AUM: Assets under management; the total market value of all assets held in the fund.
Max drawdown: The largest peak-to-trough decline in an investment's value over a specific period.
Total return: Overall investment return including price changes plus all dividends and distributions, assuming reinvestment.
Developed markets: Economies considered advanced, with mature financial systems and higher income levels, like the U.S. or Japan.
Emerging markets: Developing economies with faster growth potential but generally higher political and economic risk.
Sector allocation: How a fund's assets are distributed across different industries, such as technology or financials.
Large-cap: Companies with relatively large market values, typically tens of billions of dollars or more.
Mid-cap: Companies with medium-sized market values, generally smaller than large-caps but larger than small-caps.

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

Adé Hennis has positions in Apple and Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.