Better Global ETF Buy: Can Investors Earn More with IEFA or SPGM?

The Motley Fool

by newsfeedback@fool.com (Katie Brockman)

February 23, 2026

AI-Generated Deep Dive Summary

Investors seeking global equity exposure face a crucial decision when choosing between the State Street SPDR Portfolio MSCI Global Stock Market ETF (SPGM) and the iShares Core MSCI EAFE ETF (IEFA). While both aim to provide international diversification, their approaches differ significantly. SPGM offers broad exposure to the entire global market, including the U.S. and emerging markets, whereas IEFA focuses specifically on developed markets outside the U.S. and Canada. This distinction, along with differences in cost, performance, risk profiles, and sector composition, makes one ETF potentially more appealing than the other depending on an investor’s strategy. The key difference lies in market focus. SPGM’s global approach includes a mix of developed and emerging markets, offering exposure to faster-growing regions like China and India. In contrast, IEFA narrows its scope to developed markets in Europe, Asia, and elsewhere, avoiding the volatility often associated with emerging economies. This targeting can influence both potential returns and risk levels, as emerging markets tend to be more volatile but may offer higher growth opportunities. Cost is another critical factor. Both ETFs are relatively inexpensive compared to actively managed funds, but SPGM generally has a lower expense ratio, which can add up over time. Performance metrics, such as 1-year return and beta (a measure of volatility relative to the S&P 500), also differ between the two funds. Investors should consider these factors alongside their risk tolerance and investment goals when making a decision. For those seeking global diversification without U.S.-centric exposure, SPGM’s broader reach may be more appealing. However, IEFA’s narrower focus on developed markets could align better with investors prioritizing stability over growth potential. Understanding these differences can help investors make informed choices that align with their financial objectives and risk appetite. Ultimately, the choice between SPGM and IEFA

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Originally published on The Motley Fool on 2/23/2026