GWX ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
A leading ETF that spreads investments across roughly 2,000 or more small-cap stocks in developed markets outside the US, offering global small-cap exposure without concentration in any single country or stock.
SubscribeWhat Is This ETF?
The fund holds roughly 2,000 small-cap stocks in developed markets outside the US using a sampling approach. Following its index methodology, it concentrates on companies with low market capitalizations, seeking the niche growth potential of global markets.
It suits investors who want to diversify across small and mid-sized companies with expected growth outside the US market and pursue alpha in their portfolios.
It is a passive (index-tracking) ETF launched in 2007 by State Street (SSGA).
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | S&P Developed Ex-U.S. Under USD 2B Index |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Semiannual |
| Dividend Frequency | Semiannual |
| Expense Ratio | 0.40% |
The fund holds small-cap stocks in developed markets such as Japan, South Korea, and Europe in proportion to their market capitalization. Individual position weights are low, which minimizes single-company risk, while the strategy aims for broad diversification across countries and sectors.
- Diversification across more than 2,000 holdings
- Exposure to the Asia-Pacific region, with high weightings in Japan and South Korea
Size and Costs
Assets under management (AUM) stand at $903.1M, and the expense ratio is 0.40% per year.
Unlike VEA or IEFA, which focus on large caps, this fund concentrates on small caps. Volatility can be higher in market downturns, but it may offer more resilient returns during recoveries.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeHelped by the global economic recovery and a weaker yen, small caps with heavy Japan weightings have posted positive performance. Small caps tend to respond more closely to domestic economic conditions within their regions.
As the global interest rate cycle moves past its peak and shifts toward expectations of rate cuts, capital inflows are strengthening into small caps that had struggled with heavy funding costs. In particular, investor interest in innovative companies with high growth potential is rising again.
Strengths and Weaknesses
The fund provides broad access to developed-market small caps worldwide, but it is exposed to currency fluctuations and country-specific economic risks.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
The VEA, IEFA, and VXUS listed in the table mainly invest in large caps in developed markets outside the US, so they differ markedly from GWX in company size. Direct alternatives include Vanguard's VSS and iShares' SCZ. Because these may differ in expense ratio and stock selection criteria, they are worth reviewing together.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VEA | Vanguard FTSE Developed Markets ETF | $69.44 | -1.5% | $231.7B | 0.03% | 2.45% | +13.8% |
 IEFA | iShares Core MSCI EAFE ETF | $96.31 | -0.9% | $191.0B | 0.07% | 3.42% | +9.1% |
 VXUS | Vanguard Total International Stock ETF | $82.37 | -1.5% | $163.0B | 0.05% | 2.41% | +10.1% |
 VT | Vanguard Total World Stock ETF | $155.33 | -1.7% | $84.2B | 0.06% | 1.55% | +10.7% |
 EFA | iShares MSCI EAFE ETF | $103.37 | -0.9% | $77.3B | 0.32% | 3.25% | +9.2% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 NCO | Southern Cross Acquisition I Corp | - | $9.95 | +0.4% | $147.2M | - | - |
 MYMK | State Street My2031 Municipal Bond ETF | 0.17% | $24.67 | +0.1% | $0.0M | - | 2.61% |
 CGAU | Centerra Gold Inc | 0.01% | $20.20 | -1.1% | $4.0B | 9.4 | 0.99% |
 SII | Sprott Inc | 0.00% | $101.07 | -5.2% | $2.6B | 24.7 | 1.61% |
 ZIM | Zim Integrated Shipping Services Ltd | 0.00% | $28.38 | -2.9% | $3.4B | 24.7 | 9.91% |
 ARIS | Aris Mining Corp | 0.00% | $14.43 | -9.1% | $3.0B | 10.5 | - |
 DNN | Denison Mines Corp | 0.00% | $2.21 | -6.8% | $2.0B | - | - |
Investor Checkpoints
Investing in GWX can be the final piece that completes a portfolio's diversification by region and company size. Before investing, use the checklist below to review the current global macro environment.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 🌏 Country Weightings | Review the economic outlook for the Japanese and South Korean markets | High Japan weighting |
| 💵 Expense Level | Check cost efficiency against competing ETFs such as VSS | Average |
| 💱 Exchange Rate Trends | Dollar/won trend against the yen and major developed-market currencies | Needs review |
| 📈 Interest Rate Environment | Check the direction of global rate cuts | Shifting favorably |
Small caps can prove more vulnerable than large caps during a global economic crisis. Because this product is not currency hedged, keep in mind that exchange rate movements can determine a significant portion of total returns.
It is a suitable tool for investors who want to get ahead on small caps that could become the next market leaders outside the US. It works well for diversifying a portfolio from a long-term perspective.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
Today's 5 AI picks, all free