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IEFA vs. SPDW: two developed ex-U.S. ETFs compete on fees and yield
SPDW carries a 0.03% expense ratio versus IEFA’s 0.07%, while IEFA’s trailing dividend yield is higher at 3.3% versus SPDW’s 2.9%.
Two developed ex-U.S. equity ETFs, the iShares Core MSCI EAFE ETF (IEFA) and the State Street SPDR Portfolio Developed World ex-US ETF (SPDW), are positioned as alternative building blocks for international diversification, with differences that center on costs, yield, and recent performance characteristics, according to The Motley Fool.
IEFA is described as a large, highly liquid option with nearly $200 billion in assets, while SPDW is presented as an ultra-low-cost alternative. The article notes SPDW’s 0.03% expense ratio compares with IEFA’s 0.07%, and it also highlights a yield gap, with IEFA at a 3.3% trailing dividend yield versus SPDW at 2.9%.
Both funds provide broad exposure to developed markets outside the United States and hold thousands of stocks. IEFA holds 2,616 stocks and targets the MSCI EAFE IMI Index, with financial services at 24% and industrials at 20% among its sector allocations, while SPDW holds 2,433 stocks and tracks the S&P Developed Ex-U.S. BMI Index, with financial services at 25% and industrials at 18%.
The article also lists top holdings, including ASML as a common weight across both ETFs, and provides fund-launch and payout context. IEFA was launched in 2012 and paid $3.29 per share over the trailing 12 months, and SPDW was launched in 2007 with a $1.52 per share trailing 12-month payout, based on the cited recent share prices.