The iShares MSCI World ETF (NYSEMKT: URTH) and SPDR Portfolio Developed World ex-US ETF (NYSEMKT: SPDW) offer investors different opportunities in the world of developed market equities. These two ETFs have distinct characteristics in terms of cost, yield, regional exposure, and top holdings concentration.
SPDW stands out for its lower expenses and higher dividend yield compared to URTH. With an expense ratio of 0.03%, SPDW is significantly more affordable than URTH, which has a 0.24% expense ratio. Additionally, SPDW offers a dividend yield of 3.2%, making it attractive for cost-conscious or income-focused investors.
In terms of regional exposure, URTH holds more U.S. tech giants, such as Nvidia, Apple, and Microsoft, while SPDW focuses exclusively on developed markets outside the U.S. This means that URTH is more concentrated in the Technology sector, with over 70% of its assets in American companies, while SPDW provides a more globally diversified approach.
When it comes to performance, SPDW saw a higher 1-year return of 35.3% compared to URTH’s 22.9%. However, SPDW also experienced a slightly deeper five-year drawdown of 30.20% compared to URTH’s 26.06%.
SPDW’s portfolio consists of 2,390 stocks with a focus on Financial Services, Industrials, and Technology. Its largest positions include Roche, Novartis, and Toyota Motor, each accounting for around 1% of assets. On the other hand, URTH is more concentrated in Technology, with top holdings in U.S. tech giants.
Both ETFs have capitalized on the strong international stock rally in 2025, with SPDW gaining approximately 35% and URTH rising 23% over the past year. SPDW’s performance was driven by its focus on developed markets like Japan, the U.K., and Canada, while URTH benefited from its exposure to U.S. tech stocks.
In conclusion, SPDR Portfolio Developed World ex-US ETF offers cost-effective and income-focused international diversification with a non-U.S. focus. On the other hand, iShares MSCI World ETF provides a one-fund global approach with significant U.S. exposure. Investors should consider their investment goals and risk tolerance when choosing between these two ETFs for their portfolio.
