Vanguard VXUS vs SPDR SPGM: Which is the Better International ETF?
Key Points
State Street SPDR Portfolio MSCI Global Stock Market ETF includes U.S. equities while Vanguard Total International Stock ETF focuses entirely on international markets.
Vanguard Total International Stock ETF offers a lower expense ratio and a higher trailing-12-month dividend yield than the State Street fund.
State Street SPDR Portfolio MSCI Global Stock Market ETF has a smaller portfolio of 2,949 holdings and exhibits higher historical price volatility.
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Vanguard Total International Stock ETF (NASDAQ:VXUS) provides broad exposure to non-U.S. markets, while State Street SPDR Portfolio MSCI Global Stock Market ETF (NYSEMKT:SPGM) serves as a single-fund solution for the entire global stock market.
Investors often face a choice between a streamlined total world approach or a modular strategy that separates domestic and international equities. The SPDR fund aims to capture the entire global equity market in a single wrapper, including the U.S., whereas the Vanguard fund specifically targets everything outside the domestic market. This fundamental difference in scope dictates how each fund fits into a broader investment portfolio.
Snapshot (cost & size)
| Metric | VXUS | SPGM |
|---|---|---|
| Issuer | Vanguard | SPDR |
| Expense ratio | 0.05% | 0.09% |
| 1-yr return (as of May 11, 2026) | 35.60% | 36.10% |
| Dividend yield | 2.70% | 1.70% |
| Beta | 0.76 | 0.92 |
| AUM | $582.3 billion | $1.6 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Cost-conscious investors might prefer the Vanguard fund, which features a rock-bottom 0.05% expense ratio compared to 0.09% for the SPDR fund. Income also varies significantly; the international-only focus of the Vanguard fund results in a trailing-12-month distribution yield of 2.70%, while the global inclusion in the SPDR fund produces a lower 1.70% yield.
Performance & risk comparison
| Metric | VXUS | SPGM |
|---|---|---|
| Max drawdown (5 yr) | (29.50%) | (25.90%) |
| Growth of $1,000 over 5 years (total return) | $1,576 | $1,775 |
What's inside
The State Street SPDR Portfolio MSCI Global Stock Market ETF tracks a broad index of global equities, incorporating domestic U.S. markets alongside international ones. Its 2,949 holdings offer concentrated exposure to mega-cap growth, with its largest positions including Nvidia Corp (NASDAQ:NVDA) at 4.37%, Apple Inc (NASDAQ:AAPL) at 3.54%, and Microsoft Corp (NASDAQ:MSFT) at 2.74%. Technology is its largest sector weight at 25.00%, followed by financial services at 17.00%, and industrials at 13.00%. This fund, launched in 2012, has a trailing-12-month dividend of $1.45 per share.
Conversely, the Vanguard Total International Stock ETF provides exposure to 8,602 companies while excluding the U.S. entirely. Its largest positions include Taiwan Semiconductor Manufacturing Co Ltd (TPE:2330.TW) at 3.39%, Samsung Electronics Co Ltd (KRX:005930.KS) at 1.32%, and ASML Holding NV (AMS:ASML.AS) at 1.24%. The portfolio's sector composition is more distributed, with 22.00% in financial services, 16.00% in industrials, and 16.00% in technology. Launched in 2011, the Vanguard fund has a trailing-12-month dividend of $2.29 per share, reflecting its international-only focus.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
While both of these ETFs invest in a broad swath of international stocks, they are quite different offerings. The State Street ETF includes U.S. stocks, so the usual suspects, like Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and the other Magnificent 7 stocks are the top holdings in the portfolio.
Further, U.S. stocks make up 62% of the total assets in the portfolio, so it is very much a U.S.-fueled ETF. As such, it has better long-term returns because of the relative strength of U.S. stocks.
But if you want an ETF that will be more of a diversifier, the VXUS is the better option. The all-cap portfolio incoporates almost 9,000 stocks, but all of them are outside the U.S. Roughly 38% are from developed nations in Europe, 27% come from Asia-Pacific, and about 26% are from emerging markets.
International stocks have performed well over the past couple of years, so this ETF has a better year-to-date return than SPGM. If the goal is to diversify a portfolio of mostly U.S. stocks, the Vanguard VXUS ETF is the better option.
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Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
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