NFFFX vs. SPGM
Compare and contrast key facts about American Funds New World Fund (NFFFX) and SPDR Portfolio MSCI Global Stock Market ETF (SPGM).
NFFFX is managed by American Funds. It was launched on Jun 17, 1999. SPGM is a passively managed fund by State Street that tracks the performance of the MSCI AC World IMI. It was launched on Feb 27, 2012.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: NFFFX or SPGM.
Key characteristics
| NFFFX | SPGM | |
|---|---|---|
| YTD Return | 4.80% | 5.64% |
| 1Y Return | 12.66% | 18.08% |
| 3Y Return (Ann) | -1.75% | 4.72% |
| 5Y Return (Ann) | 6.63% | 10.00% |
| 10Y Return (Ann) | 5.91% | 8.69% |
| Sharpe Ratio | 1.14 | 1.64 |
| Daily Std Dev | 11.66% | 11.50% |
| Max Drawdown | -50.17% | -94.43% |
| Current Drawdown | -10.42% | -81.07% |
Correlation
The correlation between NFFFX and SPGM is 0.75, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
NFFFX vs. SPGM - Performance Comparison
In the year-to-date period, NFFFX achieves a 4.80% return, which is significantly lower than SPGM's 5.64% return. Over the past 10 years, NFFFX has underperformed SPGM with an annualized return of 5.91%, while SPGM has yielded a comparatively higher 8.69% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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NFFFX vs. SPGM - Expense Ratio Comparison
NFFFX has a 0.68% expense ratio, which is higher than SPGM's 0.09% expense ratio.
Risk-Adjusted Performance
NFFFX vs. SPGM - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds New World Fund (NFFFX) and SPDR Portfolio MSCI Global Stock Market ETF (SPGM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
NFFFX vs. SPGM - Dividend Comparison
NFFFX's dividend yield for the trailing twelve months is around 2.65%, more than SPGM's 1.98% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
NFFFX American Funds New World Fund | 2.65% | 2.78% | 1.21% | 7.23% | 0.35% | 3.95% | 2.62% | 2.17% | 1.28% | 0.94% | 7.46% | 3.61% |
SPGM SPDR Portfolio MSCI Global Stock Market ETF | 1.98% | 2.09% | 2.37% | 1.94% | 1.45% | 2.46% | 1.89% | 2.29% | 1.87% | 3.70% | 2.18% | 1.74% |
Drawdowns
NFFFX vs. SPGM - Drawdown Comparison
The maximum NFFFX drawdown since its inception was -50.17%, smaller than the maximum SPGM drawdown of -94.43%. Use the drawdown chart below to compare losses from any high point for NFFFX and SPGM. For additional features, visit the drawdowns tool.
Volatility
NFFFX vs. SPGM - Volatility Comparison
American Funds New World Fund (NFFFX) has a higher volatility of 3.63% compared to SPDR Portfolio MSCI Global Stock Market ETF (SPGM) at 3.40%. This indicates that NFFFX's price experiences larger fluctuations and is considered to be riskier than SPGM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.