Vanguard Total International Stock ETF (VXUS -1.00%) provides broad exposure to non-U.S. markets, while State Street SPDR Portfolio MSCI Global Stock Market ETF (SPGM -1.17%) 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 (NVDA -1.56%) at 4.37%, Apple Inc (AAPL -1.27%) at 3.54%, and Microsoft Corp (MSFT -2.13%) 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 (NVDA -1.56%), Apple (AAPL -1.27%), Microsoft (MSFT -2.13%) 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.
