Investors often choose between regional and global funds based on whether they already have U.S. stocks covered elsewhere in their portfolio. The Schwab International Equity ETF (NYSEMKT:SCHF) isolates developed international markets, making it a natural complement to a separate U.S.-focused portfolio. The State Street SPDR Portfolio MSCI Global Stock Market ETF (NYSEMKT:SPGM), on the other hand, functions as a “whole world” core holding that bundles U.S., developed, and emerging markets together.
Snapshot (cost & size)
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
With a 0.09% expense ratio, SPGM is an affordable way to own the entire global stock market, though its fee is slightly higher than SCHF’s 0.03%. SCHF has the higher dividend yield as well, beating SPGM by 1.26 percentage points.
Performance & risk comparison
What’s inside
Launched in 2012, SPGM aims to track the MSCI ACWI IMI Index — a benchmark built to capture nearly the entire investable global stock market. Its sector allocations are led by technology at 30.7%, financial services at 16.5%, and industrials at 12.7%. The fund spreads its assets across 2,927 stocks, led by Nvidia (NASDAQ:NVDA) at 4.1%, Apple (NASDAQ:AAPL) at 3.7%, and Microsoft (NASDAQ:MSFT) at 2.3%. It was launched in 2012.
SCHF tracks the FTSE Developed ex US Index, giving it a non-U.S. footprint. The fund holds 1,492 stocks. Its largest sector allocations include financial services at 24.0%, technology at 18.7%, and industrials at 17.5%. The fund’s top positions are Samsung Electronics (KOSE:A005930) at 3.3%, Sk Hynix (KOSE:A000660) at 3.2%, and Asml Holding (NASDAQ:ASML) at 2.4%. SCHF was launched in 2009.
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What this means for investors
To choose between these two funds, you first need to decide what role you want a global fund to play in your portfolio.
SCHF is built for investors who already have solid U.S. exposure — through an S&P 500 fund or individual stocks — and simply want to round things out with developed international markets, including Japan, the U.K., and South Korea. Its rock-bottom 0.03% fee and 3.06% yield make it an efficient, income-friendly way to do that.
