URTH vs. NZAC: Global Reach or Climate-Conscious Investing?

Core Insights - The article compares two ETFs: URTH, which tracks developed markets without an ESG overlay, and NZAC, which focuses on climate alignment and incorporates ESG criteria [4][5][9]. Group 1: URTH Overview - URTH has 1,320 holdings with a technology bias of 28% and greater weight in financials and industrials [1]. - It has $6.5 billion in assets under management (AUM), providing greater scale and liquidity, which can reduce trading friction for larger trades [1]. - The fund charges a 0.24% expense ratio, which is twice as high as NZAC's [8]. Group 2: NZAC Overview - NZAC tracks an ESG-screened index with a 36% allocation to technology and 16% to cash and others, holding 687 stocks [2]. - It has $178.1 million in AUM, making it significantly smaller than URTH [2]. - The fund has a low expense ratio of 0.12% and targets climate-focused investors by screening out companies involved in controversial sectors [7]. Group 3: Investment Considerations - URTH offers broad exposure to developed markets, with over 60% of its holdings in U.S. companies, making it suitable for traditional market-cap-weighted global diversification [8]. - NZAC, on the other hand, is designed for investors who prioritize climate alignment and sustainable investing principles [9]. - The choice between URTH and NZAC depends on whether investors value climate considerations in their investment strategy [9].