The matter of diversification, one finds, is rarely as straightforward as the prospectuses suggest. Two exchange-traded funds – the iShares MSCI World ETF (URTH) and the SPDR Portfolio Developed World ex-US ETF (SPDW) – present themselves as avenues to participate in the global market. Yet, a closer inspection reveals subtle differences, not of grand strategy, but of quiet resignation to the inevitable compromises of investment.
Both funds, in their way, aim to provide access to the equities of developed nations. However, their approaches diverge, and it is in these divergences that a discerning investor might find a measure of solace – or, perhaps, a gentle confirmation of the futility of seeking perfect solutions.
A Snapshot of Costs and Scale
| Metric | URTH | SPDW |
|---|---|---|
| Issuer | iShares | SPDR |
| Expense ratio | 0.24% | 0.03% |
| 1-yr return (as of 2026-01-09) | 22.9% | 35.3% |
| Dividend yield | 1.5% | 3.2% |
| AUM | $7.0 billion | $34.1 billion |
The SPDW, it must be noted, is considerably more… economical. A difference in expense ratio of 0.21% may seem trifling to some, but one cannot help but wonder what small comforts are sacrificed to achieve such savings. The higher dividend yield, of course, is a welcome sight, though whether it truly compensates for the inherent uncertainties of the market is a question best left unanswered.
A Comparison of Performance and Risk
| Metric | URTH | SPDW |
|---|---|---|
| Max drawdown (5 y) | (26.06%) | (30.20%) |
| Growth of $1,000 over 5 years | $1,659 | $1,321 |
The numbers, as always, tell a partial story. While SPDW may offer a more compelling cost structure, URTH has, over the past five years, demonstrated a greater capacity to… grow. Though one suspects such success is as much a matter of chance as of skill. The market, after all, rarely rewards consistent performance.
What Lies Within?
The SPDR fund, one observes, focuses its attention on developed markets excluding the United States. A portfolio weighted towards Financial Services, Industrials, and a modest allocation to Technology. A diversified approach, perhaps, but one that relies on the fortunes of companies largely unknown to the casual observer. Roche, Novartis, Toyota Motor… solid, dependable names, but lacking the… glamour of their American counterparts.
URTH, by contrast, embraces the United States, with a heavy emphasis on Technology. Nvidia, Apple, Microsoft… the titans of the digital age. A more concentrated portfolio, certainly, but one that benefits from the unwavering enthusiasm of investors. Though one cannot help but wonder if this enthusiasm is justified. Or merely a collective delusion.
For further guidance, one can consult the endless stream of investment advice available online. Though whether such advice is truly helpful is, of course, another matter.
A Quiet Reflection
Both ETFs benefited from the international rally of 2025, though SPDW, by avoiding the United States, achieved a somewhat more impressive return. A testament to the enduring appeal of diversification, perhaps. Or simply a lucky break.
SPDW offers a low-cost, high-yielding exposure to developed markets excluding the United States. A sensible choice for those who already hold a significant allocation to American equities. URTH, on the other hand, provides a more convenient, one-stop solution for investors who prefer to keep things simple. Though at a higher cost.
If one seeks a cheaper, more diversified approach, SPDW may be the more suitable choice. But if one prefers the comfort of familiarity, URTH offers a convenient, albeit more expensive, alternative. The market, as always, offers no easy answers.
A Glossary of Terms
ETF: An exchange-traded fund. A basket of securities, traded like a stock.
Expense ratio: The annual cost of operating a fund.
Dividend yield: The annual dividend payment, expressed as a percentage of the share price.
Developed markets: Mature economies with advanced infrastructure.
Max drawdown: The largest peak-to-trough decline in an investment’s value.
Beta: A measure of a fund’s volatility.
AUM: Assets Under Management.
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2026-01-17 16:32