SPDR Portfolio Developed World ex-US ETF (SPDW +0.61%) and iShares Core MSCI EAFE ETF (IEFA +0.62%) offer the same broad international charm as two gentlemen at a ball-both polished, yet one wears a cravat, the other a bow tie. Their divergence lies in cost, scale, and the subtle art of Canadian inclusion.
Both funds dance through developed markets beyond the United States, yet SPDW, with its S&P index, waltzes with Canadian equities, while IEFA, in a slight twist of formality, excludes them entirely. One might call this the difference between a well-traveled dandy and a gentleman who declines to visit the countryside.
Snapshot (cost & size)
| Metric | SPDW | IEFA |
|---|---|---|
| Issuer | SPDR | IShares |
| Expense ratio | 0.03% | 0.07% |
| 1-yr return (as of 2025-12-12) | 26.6% | 16.0% |
| Dividend yield | 2.6% | 2.9% |
| Beta | 1.05 | 1.3 |
| AUM | $33.3 billion | $163.0 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
SPDW, with its modest expense ratio, is the thrifty dandy’s choice; IEFA, with its stately $163 billion, offers the gravitas of a seasoned collector. The fee gap is small, yet IEFA’s higher yield whispers sweet nothings to income-seeking investors.
Performance & risk comparison
| Metric | SPDW | IEFA |
|---|---|---|
| Max drawdown (5 y) | -30.20% | -30.41% |
| Growth of $1,000 over 5 years | $1,335 | $1,330 |
What’s inside
IEFA’s portfolio is a gallery of 2,600 developed-market stocks, excluding Canada’s polite but unassuming contributions. Its sector mix is a masterclass in balance-financial services (23%), industrials (20%), and healthcare (10%)-with ASML, AstraZeneca, and Roche as its star exhibits. A fund with $160 billion in assets is less a financial instrument than a statement of confidence.
SPDW, in contrast, is the minimalist’s muse. With 2,410 holdings and a lower expense ratio, it mirrors IEFA’s sector allocations but replaces Canada’s 11% with a more austere composition. Samsung and ASML share the spotlight, yet the fund’s Canadian exclusion is the only blemish on its otherwise flawless symmetry.
For those who believe diversification is the art of not putting all one’s eggs in the same basket-or, worse, the same country-these funds offer twin paths. Yet SPDW’s inclusion of Canada, that “third wheel” in global markets, grants it a faint edge in geographical sophistication.
What this means for investors
While America’s corporate titans dominate headlines, the discerning investor knows that true elegance lies in the subtlety of international exposure. IEFA, with its grandeur, and SPDW, with its frugality, are both admirable-but one must ask: does one seek a museum or a boutique?
IEFA’s Canadian exclusion is a minor but meaningful act of curation, while SPDW’s inclusion is a nod to the beauty of completeness. For those who prize cost and breadth above all, SPDW’s ledger is cleaner, its portfolio more cosmopolitan. Yet IEFA’s scale and liquidity are the trappings of a fund that has long mastered the art of the market.
Glossary
ETF: A financial bauble that glitters with the illusion of control.
Expense ratio: The price of sophistication, measured in percentages.
Dividend yield: The poet’s reward for patience.
Beta: A measure of how much one trembles at the market’s whims.
Assets under management (AUM): The weight of a fund’s reputation, in billions.
Max drawdown: The market’s cruel joke on even the most composed investor.
Developed markets: The drawing rooms of global finance, where the tea is always warm.
Sector allocation: The art of dividing one’s fortune into thematic chapters.
Liquidity: The ease with which one may flee a burning investment.
Total return: The sum of all one’s hopes and losses.
Index: A benchmark for mediocrity, or the gold standard of performance.
And so, dear reader, the choice is yours: a dandy with a cravat or a dandy with a bow tie. Remember, as Wilde himself mused, “Life imitates art far more than art imitates life”-and in the theater of investing, the subtleties are everything. 🦊
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2025-12-20 11:32