Key Points
IEFA offers higher recent returns and a significantly higher dividend yield than SPGM.
SPGM provides broader global exposure including U.S. and emerging markets, while IEFA focuses on developed markets outside North America.
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Both the Street SPDR Portfolio MSCI Global Stock Market ETF (NYSEMKT:SPGM) and iShares Core MSCI EAFE ETF (NYSEMKT:IEFA) are designed to offer broad global stock exposure, but their approaches differ: SPGM covers the full global equity spectrum, while IEFA excludes North America to focus on developed markets in Europe, Asia, and Australia. This comparison examines cost, recent returns, risk, portfolio composition, and trading features to help investors evaluate which ETF may fit their needs.
Snapshot (cost & size)
| Metric | SPGM | IEFA |
|---|---|---|
| Issuer | SPDR | IShares |
| Expense ratio | 0.09% | 0.07% |
| 1-yr return (as of Feb. 7, 2026) | 21.47% | 28.70% |
| Dividend yield | 1.82% | 3.32% |
| Beta | 0.91 | 0.79 |
| AUM | $1.45 billion | $171.77 billion |
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.
IEFA has a substantial advantage with nearly double the dividend yield, and a one-year yield that’s considerably higher.
Performance & risk comparison
| Metric | SPGM | IEFA |
|---|---|---|
| Max drawdown (five years) | (25.92%) | (30.41%) |
| Growth of $1,000 over five years | $1,539 | $1,338 |
What's inside
IEFA tracks developed markets outside the U.S. and Canada, offering access to 2,589 holdings, with financial services (23%), industrials (19%), and consumer cyclicals (10%) as the top sectors. Its largest positions include ASML Holding N.V. (AMS:ASML.AS), Roche Holding AG (SIX:ROG.SW), and HSBC Holdings Plc (LSE:HSBA.L). With a 13-year track record, its international focus tends to lean towards companies in Europe and Asia.
SPGM casts a wider net, including the U.S., developed, and emerging markets, with a portfolio of 2,969 holdings and a heavier allocation to technology (26%). Top positions include Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT), reflecting the global dominance of U.S. tech companies.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Both ETFs are viable options for gaining exposure to international stocks, but investors should be aware of the risks that come with investing in IEFA. The developed-market ETF excludes North American companies, and the foreign market can move in ways unfamiliar to American investors who aren’t accustomed to holding foreign-related assets.
So if American investors want to invest internationally, it can be useful to familiarize themselves with global geopolitical and economic developments, as markets in those regions can be affected by events very different from those in the U.S.
SPGM also holds foreign companies, but with American stocks holding so much of the fund’s weight, its price movement will be less influenced by foreign events.
Nonetheless, IEFA still offers a substantially higher dividend payout and has performed better recently. But for a more stable long-term performance, investors can look to SPGM, which has delivered a 20% higher price return over the last five years.
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Adé Hennis has positions in Apple and Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
