The Vanguard Total World Stock ETF (VT 1.74%) and the SPDR Portfolio MSCI Global Stock Market ETF (SPGM 1.91%) both deliver broad global equity exposure, but VT covers nearly four times the number of stocks, while SPGM pays a higher dividend yield.
VT and SPGM aim to give investors a one-stop solution for global equity diversification, tracking thousands of stocks across developed and emerging markets. While VT is a mainstay for total-market coverage, SPGM offers a SPDR alternative with a slightly different sector balance and a higher yield, making this match-up relevant for those weighing core portfolio building blocks.
Snapshot (cost & size)
| Metric | VT | SPGM |
|---|---|---|
| Issuer | Vanguard | SPDR |
| Expense ratio | 0.06% | 0.09% |
| 1-yr return (as of 2025-12-16) | 16.8% | 18.1% |
| Dividend yield | 1.7% | 2.8% |
| Beta | 1.02 | 1.01 |
| AUM | $74.9 billion | $1.3 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The one-year return represents total return over the trailing 12 months.
SPGM costs a bit more to own on an ongoing basis, with an expense ratio of 0.09% compared to VT’s 0.06%, but compensates with a notably higher yield at 2.9% versus VT’s 1.7% -- an appealing difference for those prioritizing income.
Performance & risk comparison
| Metric | VT | SPGM |
|---|---|---|
| Max drawdown (5 y) | -26.38% | -25.92% |
| Growth of $1,000 over 5 years | $1,665 | $1,715 |
What's inside
SPGM holds 2,838 companies, aiming for full global reach across developed and emerging markets. Its sector mix is comprised of 25% technology, 18% financial services, and 12% industrials. Top positions include Nvidia at 4.1%, Apple at 3.9%, and Microsoft at 3.4%. The fund has a 14-year track record, offering stability, but with a more concentrated portfolio than VT.
VT, in contrast, is exceptionally diversified, with 9,773 holdings, but a similar allocation to the technology, financial services, and industrials sectors. Its largest stakes are also Nvidia, Apple, and Microsoft, but each accounts for a slightly smaller slice of the portfolio. This breadth may appeal to those who value maximum diversification above all.
What this means for investors
Since 2012, SPGM and VT have delivered nearly identical annualized total returns at 10.7% and 10.5%, respectively. In addition to this similarity, the funds hold the same top three and top ten positions -- although each position's weight is slightly lower in VT's portfolio. Long story short -- these ETFs are a lot alike.
That said, I would lean towards buying SPGM, even though it has a slightly higher expense ratio. First, this higher cost is more than offset by SPGM's dividend yield of 2.8%, which is significantly higher than VT's 1.7%. Furthermore, SPGM's dividend has grown by 12% annually over the last decade, whereas VT has delivered dividend growth of only 5% each year during the same period.
However, VT's lower expenses and four times higher stock count may do a better job of providing immense diversification at a great price. Ultimately, it all comes down to investors' preferences, as both stocks are solid choices for exposure to international stocks.
Glossary
ETF: Exchange-Traded Fund, a fund that trades on stock exchanges and holds a basket of securities.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: Annual dividends paid by a fund or stock, expressed as a percentage of its price.
Beta: A measure of an investment's volatility compared to the overall market, often the S&P 500.
AUM: Assets under management; the total market value of assets a fund manages for investors.
Max drawdown: The largest percentage drop from a fund's peak value to its lowest point over a specific period.
Sector mix: The allocation of a fund's investments across different industries or business sectors.
Emerging markets: Economies that are in the process of rapid growth and industrialization, often riskier than developed markets.
Developed markets: Economies with advanced infrastructure, stable governments, and established financial systems.
Portfolio diversification: Spreading investments across various assets to reduce risk.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Holdings: The individual stocks, bonds, or other assets owned by a fund.
For more guidance on ETF investing, check out the full guide at this link.
