SPGM vs. IEFA: Which Global ETF Is More Favorable?
Compared SPGM and IEFA. 5-year returns were higher for SPGM at 28.04%, while IEFA stood at 21.55%. The comparison recommended IEFA for investors who already hold U.S. stocks.
Compared SPGM (State Street SPDR Portfolio MSCI Global Stock Market ETF) and IEFA (iShares Core MSCI EAFE ETF). The two ETFs have global investing in common, but differ in composition and objectives. The comparison focused on fees, dividends, and returns.
SPGM provides broader global exposure, including exposure to the United States and emerging markets. IEFA focuses on international equities in developed markets excluding the United States. The two ETFs differ in the composition of their underlying indexes.
5Based on -year returns, SPGM recorded 28.04%. Over the same period, IEFA recorded 21.55%.
In terms of costs, IEFA’s total expense ratio was 0.07%. SPGM’s total expense ratio was 0.09%, meaning IEFA offered the lower expense ratio.
In terms of dividend yield, IEFA’s dividend yield was 3.24%. SPGM’s dividend yield was 1.67%.
The comparison recommended IEFA for investors who already hold U.S. stocks. The reasons given for the recommendation were diversification centered on developed markets and a higher dividend yield. It concluded that SPGM is suitable for investors seeking exposure to the United States and emerging markets.
Sources: The Motley Fool
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