SPDR MSCI ACWI Climate Paris Aligned ETF (NASDAQ:NZAC) is a lower-cost option with a tech tilt, while iShares MSCI ACWI ex US ETF (NASDAQ:ACWX) offers a higher yield, broader international diversification, and more assets under management. Both ETFs have their unique strengths, making them suitable for different investor preferences.
Comparing SPDR MSCI ACWI Climate Paris Aligned ETF (NASDAQ:NZAC) and iShares MSCI ACWI ex US ETF (NASDAQ:ACWX)
When considering the SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) and the iShares MSCI ACWI ex US ETF (ACWX), investors need to weigh various factors to determine the best fit for their investment goals. Let’s delve into a detailed comparison between these two global equity ETFs.
Snapshot of Cost & Size
| Metric | NZAC | ACWX |
|---|---|---|
| Issuer | SPDR | IShares |
| Expense ratio | 0.12% | 0.32% |
| 1-yr return (as of 2026-01-09) | 22.0% | 34.2% |
| Dividend yield | 1.9% | 2.7% |
| Beta | 1.06 | 1.02 |
| AUM | $182.0 million | $8.4 billion |
Beta measures price volatility relative to the S&P 500, while the 1-year return represents the total return over the trailing 12 months. ACWX may cost more than NZAC, but it offers a higher yield, making it appealing to investors seeking international income generation.
Performance & Risk Comparison
| Metric | NZAC | ACWX |
|---|---|---|
| Max drawdown (5 y) | -28.29% | -30.06% |
| Growth of $1,000 over 5 years | $1,501 | $1,267 |
The SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) leans towards technology, while the iShares MSCI ACWI ex US ETF (ACWX) focuses more on financials and industrials. Despite differences in sector exposure, both ETFs have experienced similar drawdowns over the past five years.
Exploring Holdings
ACWX holds around 1,700 stocks with a significant presence in financial services, technology, and industrials. In contrast, NZAC tilts more towards technology and includes U.S. giants like Nvidia, Apple, and Microsoft. The choice between the two ETFs depends on investor preferences for sector exposure and geographical diversification.
Implications for Investors
Investors looking for global equity exposure must decide between climate alignment with NZAC or pure international exposure with ACWX. While NZAC focuses on climate-conscious investing with a lower expense ratio, ACWX offers higher dividend yields for those prioritizing income generation. Ultimately, the decision hinges on individual portfolio strategies and goals.
Glossary of Terms
ETF: Exchange-traded fund; Expense ratio: Annual fund fee as a percentage of assets; Dividend yield: Annual dividends divided by current share price; Beta: Measure of volatility relative to a benchmark index; AUM: Assets under management; Max drawdown: Largest peak-to-trough decline; Growth of $1,000: Illustration of investment value change over time; Sector weights: Allocation of assets to industry sectors; ESG screen: Criteria based on environmental, social, and governance factors; Paris-aligned: Investment approach in line with global climate goals; Total return: Investment performance including price changes and distributions; Index: Rules-based basket of securities.
