NZAC and URTH Both Offer International Exposure, But With Differing Goals and Diversification

Core Insights - The SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) focuses on climate-friendly stocks, while the iShares MSCI World ETF (URTH) has a broader and more diversified strategy [1][8] Cost Comparison - NZAC has a lower expense ratio of 0.12% compared to URTH's 0.24%, making it more affordable for investors [3] - As of November 28, 2025, URTH has a 1-year return of 16.18%, while NZAC has a return of 13.16% [3] - Both funds offer nearly identical dividend yields, with NZAC at 1.35% and URTH at 1.30% [3] - URTH has significantly larger assets under management (AUM) at $6.05 billion compared to NZAC's $178.16 million [3] Performance & Risk Analysis - Over a 5-year period, URTH experienced a maximum drawdown of -26.04%, while NZAC had a slightly higher drawdown of -27.65% [4] - An investment of $1,000 in URTH would grow to $1,695 over 5 years, compared to $1,529 for NZAC [4] Fund Composition - NZAC tracks a climate-aligned index, holding 687 stocks with a sector tilt of 31% in technology, 17% in financial services, and 11% in industrials [5] - URTH holds 1,322 stocks, with 27% in technology, 16% in financial services, and 11% in industrials, providing broader market coverage [6] Investment Focus - NZAC is designed for environmentally focused investors, incorporating guidelines from the Taskforce on Climate Related Financial Disclosures (TCFD) [9] - URTH is more focused on global stocks from developed markets, offering greater diversification but less emphasis on environmental factors [10][12]