NFFFX vs. SPGM

Last updated Jun 24, 2026

NFFFX (American Funds New World Fund) and SPGM (SPDR Portfolio MSCI Global Stock Market ETF) are both funds - NFFFX is a Emerging Markets Equities fund managed by American Funds, while SPGM is a Global Equities fund tracking the MSCI ACWI IMI Index. Over the past 10 years, NFFFX returned 11.80%/yr vs 13.23%/yr for SPGM. A 0.77 correlation means they provide meaningful diversification when combined. NFFFX charges 0.68%/yr vs 0.09%/yr for SPGM.

Performance

NFFFX vs. SPGM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds New World Fund (NFFFX) and SPDR Portfolio MSCI Global Stock Market ETF (SPGM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NFFFX achieves a 18.76% return, which is significantly higher than SPGM's 10.79% return. Over the past 10 years, NFFFX has underperformed SPGM with an annualized return of 11.80%, while SPGM has yielded a comparatively higher 13.23% annualized return.

NFFFX

• 1D: 0.53%
• 1M: 5.59%
• YTD: 18.76%
• 6M: 18.83%
• 1Y: 36.98%
• 3Y*: 19.81%
• 5Y*: 7.24%
• 10Y*: 11.80%

SPGM

• 1D: -1.85%
• 1M: -0.09%
• YTD: 10.79%
• 6M: 9.88%
• 1Y: 28.37%
• 3Y*: 20.39%
• 5Y*: 11.06%
• 10Y*: 13.23%

*Multi-year figures are annualized to reflect compound growth (CAGR)

NFFFX vs. SPGM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NFFFX American Funds New World Fund	18.76%	28.52%	6.78%	16.11%	-21.86%	4.98%	25.17%	27.89%	-12.08%	32.92%
SPGM SPDR Portfolio MSCI Global Stock Market ETF	10.79%	23.62%	16.75%	21.34%	-17.53%	21.13%	15.28%	26.58%	-10.12%	23.26%

Correlation

The correlation between NFFFX and SPGM is 0.83, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (10Y) Calculated over the trailing 10-year period	0.85
Correlation (All Time) Calculated using the full available price history since Mar 5, 2012	0.77

The correlation between NFFFX and SPGM shifts across timeframes, from 0.77 (all time) to 0.89 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

NFFFX vs. SPGM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

NFFFX

NFFFX Risk / Return Rank: 69
NFFFX Sharpe Ratio Rank: 76
NFFFX Sortino Ratio Rank: 69
NFFFX Omega Ratio Rank: 76
NFFFX Calmar Ratio Rank: 62
NFFFX Martin Ratio Rank: 62

SPGM

SPGM Risk / Return Rank: 66
SPGM Sharpe Ratio Rank: 67
SPGM Sortino Ratio Rank: 64
SPGM Omega Ratio Rank: 66
SPGM Calmar Ratio Rank: 63
SPGM Martin Ratio Rank: 73

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

NFFFX vs. SPGM - Risk-Adjusted Trends 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	NFFFX	SPGM	Difference
Sharpe ratio: Return per unit of total volatility	2.33	2.08	+0.25
Sortino ratio: Return per unit of downside risk	3.14	2.82	+0.32
Omega ratio: Gain probability vs. loss probability	1.45	1.38	+0.07
Calmar ratio: Return relative to maximum drawdown	2.90	3.00	-0.10
Martin ratio: Return relative to average drawdown	11.59	13.18	-1.59

NFFFX vs. SPGM - Sharpe Ratio Comparison

The current NFFFX Sharpe Ratio is 2.33, which is comparable to the SPGM Sharpe Ratio of 2.08. The chart below compares the historical Sharpe Ratios of NFFFX and SPGM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

NFFFX vs. SPGM - Drawdown Comparison

The maximum NFFFX drawdown since its inception was -50.17%, which is greater than SPGM's maximum drawdown of -33.97%. Use the drawdown chart below to compare losses from any high point for NFFFX and SPGM.

Drawdown Indicators

	NFFFX	SPGM	Difference
Max Drawdown Largest peak-to-trough decline	-50.17%	-33.97%	-16.20%
Max Drawdown (1Y) Largest decline over 1 year	-13.01%	-9.50%	-3.51%
Max Drawdown (3Y) Largest decline over 3 years	-15.05%	-16.90%	+1.85%
Max Drawdown (5Y) Largest decline over 5 years	-33.48%	-25.93%	-7.55%
Max Drawdown (10Y) Largest decline over 10 years	-33.48%	-33.97%	+0.49%
Current Drawdown Current decline from peak	0.00%	-2.70%	+2.70%
Average Drawdown Average peak-to-trough decline	-9.79%	-4.79%	-5.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.25%	2.16%	+1.09%

Volatility

NFFFX vs. SPGM - Volatility Comparison

American Funds New World Fund (NFFFX) has a higher volatility of 7.60% compared to SPDR Portfolio MSCI Global Stock Market ETF (SPGM) at 5.64%. 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.

Volatility by Period

	NFFFX	SPGM	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.60%	5.64%	+1.96%
Volatility (6M) Calculated over the trailing 6-month period	14.28%	11.44%	+2.84%
Volatility (1Y) Calculated over the trailing 1-year period	16.22%	13.74%	+2.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.72%	16.16%	-0.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.26%	17.50%	-1.24%

NFFFX vs. SPGM - Expense Ratio Comparison

NFFFX has a 0.68% expense ratio, which is higher than SPGM's 0.09% expense ratio.

Dividends

NFFFX vs. SPGM - Dividend Comparison

NFFFX's dividend yield for the trailing twelve months is around 5.06%, more than SPGM's 1.83% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NFFFX American Funds New World Fund	5.06%	6.01%	4.01%	2.78%	1.21%	7.23%	0.35%	3.95%	2.62%	2.17%	1.28%	0.94%
SPGM SPDR Portfolio MSCI Global Stock Market ETF	1.83%	1.89%	1.98%	2.09%	2.37%	1.94%	1.45%	2.46%	1.89%	2.29%	1.87%	3.70%

Frequently Asked Questions

Can I hold both NFFFX and SPGM in my portfolio?

NFFFX and SPGM have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NFFFX or SPGM?

NFFFX has higher volatility (7.60%) compared to SPGM (5.64%). In terms of maximum drawdown, NFFFX dropped -50.17% vs SPGM's -33.97%.

Which has better risk-adjusted returns?

NFFFX currently has the higher Sharpe Ratio (2.33 vs 2.08), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.