VEA vs. SPGM: Which Global Stock ETF Is the Better Buy?

Andy Gould, The Motley Fool

Sat, July 25, 2026 astatine 3:34 PM CDT 4 min read

For investors seeking planetary diversification, the prime betwixt these 2 funds comes down to geographic scope. The Vanguard FTSE Developed Markets ETF (NYSEMKT:VEA) excludes American companies entirely, making it a utile money for balancing retired a U.S.-heavy portfolio. The State Street SPDR Portfolio MSCI Global Stock Market ETF (NYSEMKT:SPGM), connected the different hand, includes the U.S. alongside planetary markets, positioning it arsenic a imaginable all-in-one halfway holding.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from monthly returns implicit the disposable money past (up to 5 years). The 1-year instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

With an disbursal ratio of 0.03%, VEA is notably cheaper to ain than SPGM. VEA besides pays a higher dividend output of 2.54%, astir three-quarters of a percent constituent much than SPGM's 1.80%

Performance & hazard examination

What's wrong

Launched successful 2012, SPGM aims to way the full instrumentality of the planetary market, holding 2,927 stocks dispersed crossed some developed and emerging economies. Its largest positions see Nvidia (NASDAQ:NVDA) astatine 4.1%, Apple (NASDAQ:AAPL) astatine 3.7%, and Microsoft (NASDAQ:MSFT) astatine 2.3%. Because it spans the afloat scope of marketplace capitalizations and geographies, its attack whitethorn assistance creaseless retired immoderate country-specific risk. Its assemblage premix is heavy concentrated successful exertion astatine 30.7%, followed by fiscal services astatine 16.5% and industrials astatine 12.7%.

The Vanguard money holds 3,868 stocks crossed developed markets extracurricular the U.S., including Canada, Europe, and the Pacific region. Its apical holdings see Samsung Electronics (KOSE:A005930) astatine 3.1%, SK hynix (NASDAQ:SKHY) astatine 3.0%, and ASML Holding (NASDAQ:ASML) astatine 2.3%. Unlike SPGM, it leans much heavy into value-oriented sectors -- fiscal services relationship for 23.1% of the portfolio, with exertion astatine 18.4% and industrials astatine 17.9%. VEA was launched successful 2007.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.