Looking Beyond the S&P 500? These 2 International ETFs Offer Very Different Opportunities
2026-10-24 09:30
•Rj Fulton •The Motley Fool
••••••• ••••• Axe Cap view
Two Ways to Play International Growth: SPDW vs IEMG
Comparing low-cost, steady yields from developed world ETF SPDW against high-growth but risky emerging markets ETF IEMG.
If you’re looking beyond the local JSE for diversification, two international ETFs stand out for very different reasons. SPDW offers solid exposure to developed markets with an ultra-low fee of 0.03% and a healthy 3.1% yield. It includes stalwarts like ASML that provide steady income and moderate growth — appealing for investors wary of volatility but wanting international diversification. On the other hand, IEMG targets emerging markets with heavier tech weighting, specifically semiconductor leaders like TSM, offering more growth potential. But this comes with higher fees, geopolitical risk, and currency swings, which will likely impact the rand more. Given South Africa’s currency sensitivity, SPDW’s balanced exposure and income make it a safer bet, particularly if you’re holding rand-weak environments through locals like Naspers. I’d avoid loading up on IEMG unless you have tolerance for volatility and exposure to rand/USD fluctuations. The view could be wrong if emerging markets rally sharply or if developed markets stumble further. this is just our opinion and not financial advice
Buy SPDW for steady, diversified international exposure with income; watch IEMG closely but avoid for now due to its added risks and higher costs.
- SPDW
- IEMG
- USD/ZAR
- ASML
- TSM
- Emerging market geopolitical shocks
- Rand volatility impacting foreign returns
6/10
The article compares two international ETFs: State Street SPDR Portfolio Developed World ex-US ETF (SPDW), which targets established economies with ultra-low fees (0.03%) and higher yields (3.1%), and iShares Core MSCI Emerging Markets ETF (IEMG), which focuses on developing nations with heavy technology exposure (42%) but higher fees (0.09%). While IEMG offers greater growth potential through semiconductor leaders, SPDW is recommended as the better long-term buy due to lower costs, higher income, and more balanced risk exposure.
Our take is based on reporting first published by The Motley Fool.