The SPDW ETF offers lower expense ratios and broader international exposure compared to URTH, which focuses exclusively on U.S. large-cap stocks, making SPDW a compelling choice for investors seeking cost-efficient global diversification in uncertain economic times.
- SPDW’s expense ratio is 0.08%, compared to URTH’s 0.15%
- SPDW tracks global small- and mid-cap equities across developed and emerging markets
- URTH focuses exclusively on U.S. large-cap stocks, including major tech firms
- Over the past year, SPDW delivered a 7.3% net return versus URTH’s 6.1%
- Currency volatility affected both funds, but SPDW’s diversification reduced regional downside
- Lower fees and broader exposure make SPDW more resilient in high-rate, volatile environments
Investors evaluating equity exposure across borders face a pivotal decision between SPDW and URTH, two prominent exchange-traded funds with divergent strategies and cost structures. SPDW, tracking a global small- and mid-cap index, maintains an expense ratio of 0.08%, significantly below the 0.15% fee charged by URTH, which targets the largest U.S. equities. This cost differential translates into meaningful long-term savings, especially for tax-advantaged accounts or passive investment portfolios. The divergence extends beyond fees: SPDW provides exposure to developed and emerging markets across Asia, Europe, and Latin America, offering geographic diversification that can reduce portfolio volatility during U.S.-centric market shocks. In contrast, URTH’s concentrated focus on domestic giants like Apple, Microsoft, and Amazon exposes it to sector-specific risks and heightened sensitivity to Federal Reserve policy shifts and domestic inflation data. Recent performance metrics underscore these differences. Over the past 12 months, SPDW has delivered a net return of 7.3%, outperforming URTH’s 6.1% despite broader currency headwinds. While currency fluctuations impacted absolute returns, SPDW’s diversified holdings helped mitigate losses in any single region. Meanwhile, URTH’s returns were constrained by overvaluation in certain tech sectors and rising interest rate expectations. Market analysts note that in periods of elevated geopolitical risk and divergent central bank policies—such as the current environment where the Fed maintains higher rates while European and Asian counterparts consider easing—the cost efficiency and geographic breadth of SPDW present tangible advantages. Investors allocating capital across asset classes are increasingly favoring low-cost, globally diversified options to hedge against domestic concentration risk.