How Can I Beat the S&P 500? What the Evidence Says
The honest answer to the most asked question in investing: how many people beat the index, why it is so hard, why investors trail even their own funds, and how daily market context fits in.
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SPDW ETF vs the S&P 500: Returns, Risk and Crash History
SPDR Portfolio Developed World ex-US ETF (market value $40.8 billion): how it compared with the S&P 500, how it behaved in every crash since 2008, its risk‑adjusted returns. Returns to Oct 30, 2026.
Key takeaways
- SPDW returned +54.5% over the 5 years to Oct 30, 2026 versus +75.9% for the S&P 500: it lagged the index.
- Its 5-year Sharpe ratio was 0.39 against 0.58 for the S&P 500.
- Its deepest crisis drawdown was −33.7% in the covid crash (feb–mar 2020) (S&P 500: −34.1%).
- Five‑year volatility was 16.5% and beta 0.86.
What is your own portfolio exposed to? Check it with Exent →
In this article
- Did SPDW beat the S&P 500?
- Is SPDW good for retirement?
- SPDW returns by year vs the S&P 500
- SPDW risk-adjusted returns: Sharpe, Sortino and volatility
- How SPDW behaved in past crashes
- What moves with SPDW, and what doesn’t
- What does SPDW hold?
- The right benchmark for SPDW
- Other popular ETFs
- Data and methodology
Did SPDW beat the S&P 500?
Over the 5 years to Oct 30, 2026, SPDR Portfolio Developed World ex-US ETF (SPDW) returned +54.5% including dividends, versus +75.9% for the S&P 500 (SPY). It lagged the index by 21.4 percentage points, or +9.1% a year against +12.0%.
| Period | SPDW | S&P 500 | SPDW per year | S&P 500 per year | Result |
|---|---|---|---|---|---|
| 1 year | +17.0% | +12.0% | +17.0% | +12.0% | Beat |
| 3 years | +80.6% | +87.4% | +21.8% | +23.3% | Lagged |
| 5 years | +54.5% | +75.9% | +9.1% | +12.0% | Lagged |
| 10 years | +154.4% | +316.3% | +9.8% | +15.3% | Lagged |
- 1 year
- SPDW
- +17.0%
- S&P 500
- +12.0%
- SPDW per year
- +17.0%
- S&P 500 per year
- +12.0%
- Result
- Beat
- 3 years
- SPDW
- +80.6%
- S&P 500
- +87.4%
- SPDW per year
- +21.8%
- S&P 500 per year
- +23.3%
- Result
- Lagged
- 5 years
- SPDW
- +54.5%
- S&P 500
- +75.9%
- SPDW per year
- +9.1%
- S&P 500 per year
- +12.0%
- Result
- Lagged
- 10 years
- SPDW
- +154.4%
- S&P 500
- +316.3%
- SPDW per year
- +9.8%
- S&P 500 per year
- +15.3%
- Result
- Lagged
Total return with dividends reinvested, from month-end prices to Oct 30, 2026. Beating the index on raw return is only half the story: the next section adjusts for the risk taken. See also how to beat the S&P 500.
Is SPDW good for retirement?
SPDW can be a core retirement holding. It is State Street’s developed ex-US fund (S&P Developed Ex-U.S. BMI), all sizes. About 2,400 developed-market stocks including small caps at 0.03%.
SPDW, VEA and SCHF are close substitutes at 0.03%; SPDW pays semi-annually.
When it is the wrong choice: If you hold VEA or SCHF: the same developed markets.
Similar ETFs to compare
| ETF | Expense ratio | Why consider it |
|---|---|---|
| SPDW | 0.03% | this fund |
| VEA | 0.03% | FTSE developed all cap |
| IDEV | 0.04% | MSCI World ex USA IMI |
Fits: International ETFs for retirement. Compare: VEA vs IEFA vs SCHF: Developed International ETFs Compared. How to choose: Best ETFs for Retirement in 2026: How to Choose by Age and Situation.
Source: the benchmark, S&P Developed Ex-U.S. BMI Index, and the fund’s mechanics were checked on the State Street (SPDR) SPDW fund page on Oct 25, 2026. Expense ratios are from the issuers; trailing returns quoted here are issuer NAV returns to September 30, 2026, and drawdowns, calendar-year returns and trailing yields are Exent market data (daily total return, distributions reinvested) over the same period. Educational, not a recommendation for your situation.
SPDW returns by year vs the S&P 500
SPDW beat the S&P 500 in 3 of the 9 full calendar years shown.
| Year | SPDW | S&P 500 | Difference |
|---|---|---|---|
| 2026 (to Oct 30, 2026) | +12.7% | +11.7% | +1.0% |
| 2025 | +34.7% | +17.7% | +17.0% |
| 2024 | +3.6% | +24.9% | −21.3% |
| 2023 | +17.8% | +26.2% | −8.4% |
| 2022 | −16.0% | −18.2% | +2.2% |
| 2021 | +11.4% | +28.7% | −17.3% |
| 2020 | +9.9% | +18.3% | −8.4% |
| 2019 | +22.5% | +31.2% | −8.7% |
| 2018 | −14.2% | −4.6% | −9.6% |
| 2017 | +25.9% | +21.7% | +4.2% |
SPDW risk-adjusted returns: Sharpe, Sortino and volatility
Over 5 years, SPDW had a Sharpe ratio of 0.39 against 0.58 for the S&P 500, so it earned less return per unit of risk than the index. Its annualized volatility was 16.2% and its beta 0.86: it tended to move about 0.9× as much as the market.
| Metric | SPDW | S&P 500 |
|---|---|---|
| Annual return | +9.1% | +12.0% |
| Volatility (annualized) | 16.2% | 15.5% |
| Sharpe ratio | 0.39 | 0.58 |
| Sortino ratio | 0.59 | 0.91 |
| Max drawdown (month-end) | −28.3% | −23.9% |
| Beta to the S&P 500 | 0.86 | 1.00 |
How SPDW behaved in past crashes
SPDW’s deepest fall in the crises below was −33.7% in the covid crash (feb–mar 2020), against −34.1% for the S&P 500. The last column turns that into money: what a $100,000 position would have lost from peak to trough.
| Crisis | SPDW | S&P 500 | Loss on $100,000 |
|---|---|---|---|
| 2018 trade-war selloff | −17.4% | −20.2% | −$17,420 |
| COVID crash (Feb–Mar 2020) | −33.7% | −34.1% | −$33,660 |
| 2022 inflation bear market | −30.4% | −25.4% | −$30,450 |
| 2025 tariff selloff | −13.5% | −19.0% | −$13,530 |
| Window | SPDW max drawdown |
|---|---|
| Last 1 year | −11.6% |
| Last 3 years | −13.5% |
| Last 5 years | −30.2% |
| Last 10 years | −38.8% |
Peak‑to‑trough declines from daily prices inside each crisis window. A crash replay does not predict the next crisis; it shows how much room a holding needs. Run the same replay on a whole portfolio with the crash test.
What moves with SPDW, and what doesn’t
Correlation runs from −1 (moves opposite) to +1 (moves in lockstep). Over the last 60 months of monthly returns, SPDW’s correlation with the S&P 500 was 0.82, with the Nasdaq‑100 0.68, with long Treasuries (TLT) 0.64 and with gold (GLD) 0.45.
Adding a 5% SPDW position to an S&P 500 portfolio would have moved its 5‑year volatility from 15.5% to 15.4%.
| Least correlated large caps | Correlation | Most correlated large caps | Correlation |
|---|---|---|---|
| REGN | 0.07 | MCO | 0.72 |
| CRWD | 0.08 | FCX | 0.70 |
| COP | 0.10 | GE | 0.69 |
| NET | 0.12 | ADI | 0.69 |
| LLY | 0.13 | BLK | 0.69 |
Holdings that are highly correlated behave like one position in a selloff. See how to find hidden overlap.
What does SPDW hold?
As of Oct 20, 2026, SPDW held 2,366 positions; its 10 largest made up 12.2% of the fund. The largest was SMSN (Samsung Electr Gdr Reg S) at 2.33%.
| Holding | Name | Weight |
|---|---|---|
| SMSN | Samsung Electr Gdr Reg S | 2.33% |
| ASML | ASML Holding N.V. | 1.97% |
| A000660 | Sk Hynix Inc | 1.70% |
| ROP.SW | Roche Holding Ag | 0.98% |
| HSBA | Hsbc Holdings Plc | 0.97% |
| SHEL | Shell Plc | 0.93% |
| NOVN.SW | Novartis Ag Reg | 0.84% |
| RY.TO | Royal Bank of Canada | 0.84% |
| 8306.T | Mitsubishi Ufj Financial Gro | 0.81% |
| NESN.SW | Nestle Sa Reg | 0.79% |
From the fund’s latest published holdings. Overlap by weight adds up, for every stock both funds hold, the smaller of its two weights: 100% would mean the same portfolio. How much do VOO, QQQ and VTI overlap?
The right benchmark for SPDW
Exent matches every holding to the index with the most similar risk. For SPDW that is VXUS. Comparing a holding with an index that carries very different risk makes good results look bad and risky ones look clever. Read why the S&P 500 is the wrong benchmark for most portfolios.
Other popular ETFs
| Ticker | Name | 5‑year return | Volatility (5y) |
|---|---|---|---|
| VTI | Vanguard Total Stock Market Index Fund ETF Shares | +68.1% | 17.4% |
| VOO | Vanguard S&P 500 ETF | +76.5% | 16.8% |
| IVV | iShares Core S&P 500 ETF | +76.5% | 16.9% |
| SPY | State Street SPDR S&P 500 ETF Trust | +75.9% | 17.0% |
| 1557.T | SPDR S&P 500 ETF Trust | +78.6% | 20.8% |
| VXUS | Vanguard Total Intl Stock Idx Fund | +47.5% | 16.0% |
| QQQ | Invesco QQQ Trust | +84.3% | 22.3% |
| VUG | Vanguard Growth Index Fund ETF Shares | +66.9% | 22.2% |
Data and methodology
Returns are total returns from month‑end adjusted closing prices (dividends reinvested) through Oct 30, 2026. Crisis drawdowns and trailing maximum drawdowns use daily prices. Analyst coverage counts ratings published in the last 12 months, shown with a 30‑day delay. Full method: Exent methodology.
Holdings and weights are the fund’s latest published holdings; ETF overlap compares those holdings stock by stock.
Past performance does not guarantee future results. Historical figures are calculated by Exent from market data and are for education only; they are not investment advice or a recommendation to buy or sell any security.
See what SPDW does to your own portfolio
- Upload a screenshot of your holdings (or a CSV, Excel, PDF or Google Sheet); no brokerage login.
- Exent replays your whole portfolio, SPDW included, through the 2008, 2018, 2020, 2022 and 2025 selloffs and shows which holdings drive the losses.
- It finds holdings that move together with SPDW and compares your portfolio with a risk‑matched benchmark, Sharpe and Sortino included.
- Use the what‑if simulator to change weights and see the effect before you trade.
Frequently asked questions
SPDW can be a core retirement holding. It is State Street’s developed ex-US fund (S&P Developed Ex-U.S. BMI), all sizes. About 2,400 developed-market stocks including small caps at 0.03%. It is a poor fit if you hold VEA or SCHF: the same developed markets.
No. SPDW returned +154.4% (+9.8% a year) over the 10 years to Oct 30, 2026, versus +316.3% (+15.3% a year) for the S&P 500, including dividends.
SPDW fell −33.7% from peak to trough during the covid crash (feb–mar 2020), versus −34.1% for the S&P 500.
SPDW fell −30.4% from peak to trough during the 2022 inflation bear market, versus −25.4% for the S&P 500.
Over the 5 years to Oct 30, 2026, SPDW’s Sharpe ratio was 0.39 and its Sortino ratio 0.59, versus 0.58 and 0.91 for the S&P 500.
SPDW’s 5‑year annualized volatility was 16.5%, lower than the S&P 500’s 17.0%, with a beta of 0.86.
Among large US stocks, the lowest correlations with SPDW over the last 60 months were REGN (0.07), CRWD (0.08), COP (0.10). Its correlation with long Treasuries (TLT) was 0.64 and with gold (GLD) 0.45.
Sources
- State Street SPDR Portfolio Developed World ex-US ETF (SPDW) fund page — State Street (SPDR), Oct 25, 2026
What would SPDW do to your portfolio?
Exent replays your whole portfolio through the same crashes, finds holdings that move together and compares you with a risk‑matched benchmark. Upload a screenshot; results in about a minute.
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Educational content, not investment advice. Examples are illustrative; past performance does not guarantee future results.