International Exposure: SPDW's Lower Costs vs. URTH's U.S. Giants

The iShares MSCI World ETF (NYSEMKT:URTH) and SPDR Portfolio Developed World ex-US ETF (NYSEMKT:SPDW) differ most in cost, yield, regional exposure, and top holdings concentration, with SPDW offering lower expenses and a non-U.S. focus, while URTH tilts toward U.S. technology.

Both the iShares MSCI World ETF and the SPDR Portfolio Developed World ex-US ETF aim to give investors broad access to developed market equities, but their approach and portfolio composition set them apart. This comparison looks at cost, performance, risk, and what’s inside to help investors decide which fund could better fit their strategy.

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.

SPDW is significantly more affordable, with an expense ratio of 0.03% compared to URTH’s 0.24%, and also delivers a higher dividend yield, which may appeal to cost-conscious or income-focused investors.

Performance & risk comparison

What's inside

SPDR Portfolio Developed World ex-US ETF offers exposure to developed markets outside the United States, with a portfolio that leans into Financial Services (23%), Industrials (19%), and Technology (11%). The fund holds 2,390 stocks, making it broadly diversified, and its largest positions—Roche, Novartis, and Toyota Motor—each make up around 1% of assets. Launched nearly 19 years ago, SPDW’s breadth and regional tilt could help reduce reliance on the U.S. market.

URTH, by contrast, includes U.S. equities and is more concentrated in Technology (34%), with top positions in Nvidia, Apple, and Microsoft collectively accounting for nearly 14% of assets. This means URTH may move more closely with U.S. tech, while SPDW offers a more globally ex-U.S. approach.

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What this means for investors

Both ETFs capitalized on 2025's strong international stock rally, with SPDW gaining approximately 35% and URTH rising 23% over the past year. International markets surged as the U.S. dollar weakened and investors sought opportunities beyond America's expensive tech stocks. SPDW delivered stronger returns by avoiding U.S. exposure entirely, focusing instead on developed markets like Japan, the U.K., and Canada.

SPDW tracks developed markets excluding the United States with an ultra-low 0.03% expense ratio and 3.2% dividend yield. Its $34 billion in assets provide ample liquidity while keeping costs minimal. The fund offers pure international exposure for investors who already hold U.S. stocks separately or want to reduce dependence on American tech giants.

URTH takes a global approach including the U.S., with over 70% of assets in American companies. Its 0.24% expense ratio costs eight times more than SPDW, while its 1.5% yield falls short for income seekers. However, URTH moves more closely with familiar U.S. market leaders, potentially offering comfort to investors nervous about heavy international allocation.

If you're looking for cheaper, income-focused international diversification that truly reduces U.S. market concentration, SPDW may be the ETF for you. Give URTH a closer look if you prefer one-fund global simplicity and want significant U.S. exposure within your international holdings. Just know you'll pay higher costs for that convenience.

Glossary

ETF: Exchange-traded fund that holds a basket of securities and trades on an exchange 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, expressed as a percentage.
Developed markets: Economies considered mature, with advanced infrastructure and stable regulatory systems, like Japan, U.K., and Germany.
Max drawdown: The largest peak-to-trough decline in an investment’s value over a specific period.
Growth of $1,000: Illustration showing how a $1,000 investment would have increased or decreased over time, including reinvested returns.
Beta: Measure of a fund’s volatility relative to a benchmark index, often the S&P 500.
Total return: Investment performance including price changes plus all dividends and distributions, assuming they are reinvested.
Developed world ex-US: Investment exposure to developed countries while specifically excluding U.S. companies from the portfolio.
Issuer: The company that creates and manages an ETF or mutual fund, responsible for its administration.
AUM (Assets Under Management): Total market value of all assets that a fund or manager oversees.
Portfolio concentration: Degree to which a fund’s assets are invested in a small number of holdings or sectors.

Sara Appino 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.