Vanguard VEA vs. State Street SPDW: Which Developed Markets ETF Wins This Tight Race?

Vanguard’s FTSE Developed Markets ETF (VEA) and State Street’s SPDR Portfolio Developed World ex-US ETF (SPDW) provide nearly identical low-cost exposure to developed markets outside the U.S., with small differences in income and diversification. Both exclude U.S. equities and cover Europe, Canada and the Pacific region, aiming to balance domestic portfolios and reduce country-specific risk. The funds charge the same expense ratio of 0.03%. State Street’s fund pays a higher dividend—about 3% versus 2.4% for Vanguard. VEA holds 3,895 stocks and is more diversified than SPDW, which has 2,434 holdings. Sector weights are similar, with financials at 24% for both and top holdings including Samsung Electronics and SK Hynix.