^GSPC -0.35% The State Street SPDR Portfolio Developed World ex-US ETF (NYSEMKT:SPDW) offers lower costs and a focus on developed markets, while the iShares Core MSCI Total International Stock ETF (NASDAQ:IXUS) provides broader global exposure, including emerging markets.
Investors seeking international equity exposure often weigh these two heavyweights. These funds serve as core building blocks for portfolios that need to balance domestic holdings with foreign growth. One uses a narrower lens to capture established markets, while the other casts a wider net across the global landscape to capture emerging economies.
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 as of the close of trading on Nov. 10, 2026.
Cost is a primary differentiator in this matchup. The State Street fund is significantly more affordable, carrying an expense ratio less than half that of its iShares peer. Both funds offer a similar yield, with the State Street fund providing a slightly higher payout for income-focused investors.
Performance over the last five years shows a notable gap in total returns. While both funds experienced similar peak-to-trough declines during market stress, the State Street fund delivered a higher cumulative gain for long-term investors.
State Street SPDR Portfolio Developed World ex-US ETF holds 2,421 stocks, primarily in developed markets. Its largest positions include SK Hynix Inc at 1.9%, ASML Holding NV at 1.85%, and Roche Holding at 1%. The fund focuses on financial services at 24%, industrials at 17%, and technology at 15%. State Street SPDR Portfolio Developed World ex-US ETF has paid $1.52 per share over the trailing 12 months, which on its recent ~$49.32 share price works out to a 3.1% yield. It was launched in 2007.
The iShares Core MSCI Total International Stock ETF maintains a much larger portfolio of 4,573 holdings. Its top holdings include Taiwan Semiconductor Manufacturing at 4.3%, Samsung Electronics Ltd at 1.9%, and ASML Holding at 1.5%. Sector weights lean toward financials at 23%, information technology at 20%, and industrials at 15%. iShares Core MSCI Total International Stock ETF has paid $2.80 per share over the trailing 12 months, which, on its recent ~$92.57 share price, works out to a 3% yield. It was launched in 2012.
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Both of these funds are good options for U.S.-centric investors seeking international exposure in their portfolio. With literally thousands of holdings in their portfolios, these are diverse ETFs that should reflect the state of equities outside the U.S. But there are key differences investors should take into account.
IXUS, the iShares ETF, offers both emerging markets and developed, non-U.S. markets, but it is heavily focused on those developed markets, with more than 80% of the portfolio in developed non-U.S. locales like Europe (the eurozone, emerging Europe, and non-eurozone members including the U.K.) with 38% of assets. Asia, both developed and non-developed, is next, at 37% of the portfolio, plus another 15% in Japanese equities.
IXUS is a large-cap-focused fund, with 79% of assets in large caps, evenly split between growth and value shares. Its top 10 holdings don't get too much attention, befitting such a diverse fund. The top 10 account for 13% of IXUS's assets.
IXUS has rewarded investors with 21.56% annualized returns over the past three years, 8.1% over the past five years, and 9.1% over the preceding 10 years.
Turning to SPDW, the State Street option, the fund is almost exclusively in developed, non-U.S. markets, with less than 1% in emerging market equities. Nearly half of the portfolio's assets are in Europe (more than 48%), including 25% in the eurozone economies and 23% in non-eurozone countries, including the U.K. Canada is the second heaviest-weighted country, at 11%, followed by Asia with more than 10% of the portfolio.
SPDW is primarily a large-cap fund, with 80% of holdings in that style of stock, with a lean in the mix toward value stocks. An even 12% of the portfolio is dedicated to SPDW's top 10 holdings, which is a reasonable level that doesn't bring much risk of any single issuer torpedoing the portfolio.
SPDW has returned 22.2% over the past three years, 9.2% over the preceding five years, and 9.8% over the past decade.
That performance puts SPDW ahead of IXUS in each of the 3-, 5-, and 10-year time frames, which is the biggest argument for going with SPDW. Its much lower expense ratio is a plus too, which should help the fund continue to outperform its counterpart going forward.
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Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
SPDW vs IXUS: Which International ETF Is the Better Buy for 2027? was originally published by The Motley Fool
