Which is the Better International All-Cap ETF?

State Street SPDR Portfolio MSCI Global Stock Market ETF (NYSEMKT:SPGM) and iShares Core MSCI Total International Stock ETF (NASDAQ:IXUS) differ on global reach, sector mix, and cost, with IXUS offering a lower expense ratio and higher yield, but SPGM delivering stronger recent returns.

Both SPGM and IXUS aim to provide broad stock market exposure at low cost, but their approaches diverge: SPGM covers both U.S. and international equities, while IXUS focuses exclusively on non-U.S. stocks. This comparison unpacks their cost, performance, risk, and portfolio makeup to help investors weigh which may better fit their global allocation needs.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.

IXUS stands out with a lower expense ratio and a meaningfully higher dividend yield, making it both more affordable to hold and more attractive for income-focused investors.

Performance & risk comparison

What’s inside

IXUS holds over 4,100 international stocks and has been around for 13.5 years. Its portfolio tilts toward financial services at 23%, followed by industrials and technology. The largest positions are Taiwan Semiconductor Manufacturing (2330.SR), Samsung Electronics Ltd (005930.KS), and Asml Holding (NASDAQ:ASML), reflecting a broad non-U.S. equity mix and wide diversification. There are no notable fund quirks or leverage resets.

By contrast, SPGM offers exposure to nearly 3,000 global stocks, including both U.S. and international markets. It leans more heavily into technology (25%), with Nvidia Corp (NASDAQ:NVDA), Apple Inc (NASDAQ:AAPL), and Microsoft Corp (NASDAQ:MSFT) as top holdings. This U.S. tech tilt may appeal to those seeking global diversification with a strong U.S. growth component.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investors

These are two all-cap ETFs that focus on stocks from around the world. But they are very different in scope. The State Street ETF, SPGM, is global in nature, meaning it also includes stocks from the United States, as well as stocks from both international developed nations and emerging markets.

It tracks the MSCI ACWI Investable Market Index, holding a representative sampling of about 3,000 stocks from that broad market index, which tracks close to 8,000 stocks worldwide.

But most, by far, are from the U.S. — about 62%. Japan is next at 5%, while the UK and Canada make up roughly 3% each.

The other ETF, IXUS, is more of an international ETF, investing in about 4.100 stocks from outside the U.S. Japan has the most representation at about 15%, followed by the UK at 9% and Canada at 8%.

So, the SPGM ETF has much better returns over the longer-term, because U.S. markets have dominated. But international markets have generally performed better over the past year or so. If you are looking for an ETF to diversify your portfolio with international stocks, then IXUS might be the better option.

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Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

IXUS or SPGM: Which is the Better International All-Cap ETF? was originally published by The Motley Fool