IEFA vs. SPDW: Which International ETF Wins in 2024
Two heavyweight international ETFs go head-to-head. Here's how to pick the right one for your portfolio.
If you're hunting for international exposure outside the US, two names keep coming up: iShares' IEFA and State Street's SPDW. Both give you developed-market coverage, but they're not the same fund — and the differences matter when you're putting real money to work.
IEFA, the iShares Core MSCI EAFE ETF, tracks developed markets across Europe, Australasia, and the Far East. SPDW, the SPDR Portfolio Developed World ex-US ETF, casts a slightly wider net by including Canada in its benchmark. That one geographic tweak changes your sector and country exposure in ways that can quietly drag or boost your returns depending on the macro environment.
Read more Goodyear's Turnaround Plan: Burning Cash to Cut Debt →
Expense ratios are razor-thin for both, which is the norm in the passive ETF space, but cost alone shouldn't drive your decision. Liquidity, assets under management, and the underlying index methodology all deserve a hard look before you hit the buy button. Larger AUM typically means tighter bid-ask spreads, which matters if you're trading in and out rather than buying and holding for decades.
The tradeable angle here is straightforward: if you want pure EAFE exposure with one of the deepest liquidity pools in the ETF market, IEFA is your play. If you want that extra slice of Canadian equity baked in — think energy and financials-heavy — SPDW gives you that without buying a separate Canada fund. Neither is wrong; they just answer different portfolio questions.
Bottom line — stop treating international ETFs as interchangeable. Know exactly what index you're tracking, what countries you're including, and what you're paying. The details are small, but in a low-return environment for developed markets, small differences compound. Continue reading at Yahoo Finance.
