The article compares two global stock ETFs: the State Street SPDR Portfolio MSCI Global Stock Market ETF (SPGM) and the iShares Core MSCI EAFE ETF (IEFA). While SPGM offers broader exposure and has delivered higher total returns, IEFA has a lower expense ratio and higher dividend yield, making it a better choice for investors focusing on developed international markets.
For a professional investor evaluating global stock ETFs, the key insight is that the State Street SPDR Portfolio MSCI Global Stock Market ETF (SPGM) has consistently outperformed the iShares Core MSCI EAFE ETF (IEFA) across multiple time frames due to its substantial U.S. equity exposure. However, if your portfolio already has significant U.S. market exposure, opting for the iShares fund might be advantageous for its lower expense ratio and higher dividend yield, providing better diversification by focusing on developed markets outside North America.