The Vanguard FTSE Developed Markets ETF (VEA) and the SPDR Portfolio Developed World ex-US ETF (SPDW) both offer low-cost exposure to international developed markets, with VEA holding more assets and stocks. VEA slightly outperformed SPDW in 1-year and 5-year growth. Both funds have similar sector exposure but differ in top holdings and overall fund size. VEA is larger and offers a higher yield, while SPDW provides better dividends. Both funds have similar performance and risk metrics, making them good options for diversifying your portfolio and gaining exposure to international markets.

VEA tracks a broad FTSE index with 3,864 stocks, while SPDW covers a similar universe with 2,390 holdings. VEA’s largest sector weights are in financial services, industrials, and technology, with top holdings in ASML Holding, Samsung Electronics, and AstraZeneca. SPDW is tilted towards Swiss multinationals like Roche, Novartis, and Nestle, with heavy weights in financials and industrials. Both funds follow market-cap-weighted strategies and offer straightforward, unhedged exposure to developed markets outside the U.S.

Over the past five years, both VEA and SPDW have experienced similar maximum drawdowns, with VEA posting slightly higher cumulative growth of 55.2% compared to SPDW’s 53.4%. With their major holdings and expense ratios being similar, both ETFs are likely to generate comparable long-term returns. Investors looking to diversify their portfolios and gain exposure to international markets can consider investing in either VEA or SPDW, or a combination of both to spread their investments.

Read more at Nasdaq: Invest Outside the U.S. With These Top International ETFs