The Vanguard FTSE Emerging Markets ETF (VWO -0.52%) offers low-cost, targeted exposure to developing economies, whereas the State Street SPDR Portfolio MSCI Global Stock Market ETF (SPGM +0.00%) serves as a diversified, global core equity holding.
Investors seeking international diversification often choose between targeted emerging-market funds and broad global equity trackers. While VWO targets growth in nations like China and Taiwan, SPGM offers a comprehensive solution for stocks across the globe, including the United States, established international markets, and emerging markets.
Snapshot (cost & size)
| Metric | VWO | SPGM |
|---|---|---|
| Issuer | Vanguard | SPDR |
| Share price | $58.10 (as of 2026-07-23) | $84.27 (as of 2026-07-23) |
| Expense ratio | 0.06% | 0.09% |
| 1-yr return (as of 2026-07-23) | 16.40% | 20.80% |
| Dividend yield | 2.40% | 1.80% |
| Beta | 0.60 | 0.92 |
| AUM | $163.3 billion | 1.7 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Vanguard fund remains one of the most affordable ways to access emerging markets with its 0.06% expense ratio. The State Street fund is also competitively priced at 0.09%, but offers a lower trailing distribution yield of 1.80% compared to VWO’s 2.40%.
Performance & risk comparison
| Metric | VWO | SPGM |
|---|---|---|
| Max drawdown (5 yr) | (30.90%) | (25.90%) |
| Growth of $1,000 over 5 years (total return) | $1,306 | $1,675 |
What's inside
State Street SPDR Portfolio MSCI Global Stock Market ETF holds 2,927 stocks, offering a wide-angle view of the global equity landscape. Its sector exposure is led by technology at 31.00%, followed by financial services at 16.00% and industrials at 13.00%. Its largest positions include Nvidia Corp (NVDA -1.01%) at 4.33%, Apple Inc (AAPL +3.52%) at 4.17%, and Microsoft Corp (MSFT +0.02%) at 2.40%. This fund was launched in 2012. State Street SPDR Portfolio MSCI Global Stock Market ETF has paid $1.54 per share over the trailing 12 months, which, at its recent ~$84.27 share price, yields 1.80%.
The Vanguard FTSE Emerging Markets ETF is geographically specific but numerically expansive, holding 5,942 positions across various developing nations. Technology is the primary sector at 34.00%, with financial services at 19.00% and consumer cyclical at 9.00% rounding out the top three. Its largest positions include Taiwan Semiconductor Manufacturing Co Ltd (TWSE:2330) at 15.69%, Tencent Holdings Ltd (SEHK:700) at 2.83%, and Alibaba Group Holding Ltd at 1.80%. It was launched in 2005. Vanguard FTSE Emerging Markets ETF has paid $1.38 per share over the trailing 12 months, which, at its recent ~$58.10 share price, yields 2.40%.
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Which is the better buy
The Vanguard FTSE Emerging Markets ETF (VWO) and the State Street SPDR Portfolio MSCI Global Stock Market ETF (SPGM) are both global exchange-traded funds (ETFs), however, they have employ different strategies. Investors considering these funds should understand these differences before deciding between them. Let’s have a closer look at how they compare.
First, there’s VWO. This fund is solely focused on emerging market stocks. VWO is one of the largest ETFs around, with over $122 billion in AUM, making it one of the 20 largest ETFs by AUM. As for holdings, the core of its positions is in the Asia Pacific region (76% of total holdings); Europe accounts for a much smaller share (12%), followed by the Americas (8%). Moving on to the country of origin, Taiwan (33%) leads, followed by China (22%) and India (16%). Turning to performance, VWO has delivered a total return of 110% over the last 10 years, equating to a compound annual growth rate (CAGR) of 7.7%. That’s far behind the S&P 500, which has generated a total return of 301%, with a CAGR of 14.9% over the same period. As for fees, the fund has a very affordable expense ratio of 0.06%.
Then, there’s SPGM. Unlike its counterpart, SPGM is designed to provide global exposure in an all-in-one package. Consequently, SPGM holds a large share of American stocks. Indeed, U.S. stocks make up an outright majority of its holdings (61% of total holdings). After the U.S., Japan is the next largest country of origin (6%), followed by the United Kingdom (3%). As for performance, SPGM has delivered a total return of 224% over the last 10 years, with a CAGR of 12.5%. Its expense ratio of 0.09% is quite low.
In summary, these funds are designed with two different strategic approaches in mind. SPGM’s approach may appeal to investors seeking a core holding for their portfolio, offering domestic and international exposure in a single ETF. VWO, on the other hand, is designed as an add-on ETF, providing investors with purely international exposure to diversify otherwise U.S.-centric portfolios.
