The Vanguard Total World Stock ETF (VT) and the SPDR Portfolio MSCI Global Stock Market ETF (SPGM) both offer global equity exposure, but VT holds nearly four times more stocks than SPGM. Although SPGM has a higher expense ratio, it compensates with a higher dividend yield.

Both ETFs have delivered similar one-year returns, with VT at 16.8% and SPGM at 18.1%. VT has a lower expense ratio of 0.06% compared to SPGM’s 0.09%. However, SPGM boasts a higher dividend yield of 2.8% versus VT’s 1.7%.

VT and SPGM cater to investors seeking global equity diversification, tracking stocks across developed and emerging markets. While VT provides broad coverage with more stocks, SPGM offers higher yield and a slightly different sector balance, making it an attractive option for core portfolio building.

SPGM holds 2,838 companies with a sector mix of 25% technology, 18% financial services, and 12% industrials. Top holdings include Nvidia, Apple, and Microsoft. On the other hand, VT is exceptionally diversified with 9,773 holdings and a similar sector allocation, making it ideal for those prioritizing maximum diversification.

SPGM costs more to own with an expense ratio of 0.09% compared to VT’s 0.06%, but offers a higher dividend yield at 2.8% versus VT’s 1.7%. Investors focusing on income may find SPGM appealing due to its higher dividend growth rate of 12% annually over the last decade.

Both SPGM and VT have delivered nearly identical annualized total returns at 10.7% and 10.5% since 2012. While they share the same top positions, SPGM offers a higher dividend yield and growth rate, while VT provides broader diversification at a lower cost, catering to different investor preferences.

Despite SPGM’s higher expense ratio, its higher dividend yield and growth rate may make it a preferable choice for income-oriented investors. On the other hand, VT’s lower expenses and greater stock count offer immense diversification at a lower cost, appealing to those valuing maximum diversification.

SPGM and VT are both solid choices for exposure to international stocks, with SPGM offering a higher dividend yield and growth rate, while VT provides greater diversification at a lower cost. Ultimately, the choice between the two ETFs depends on individual investor preferences and objectives.

Read more at Yahoo Finance: Which Global ETF Is the Better Buy for Investors?