IEMG Offers Broader Market Reach Than NZAC

Core Insights - The State Street SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) focuses on climate-conscious investing with an ESG screening, while the iShares Core MSCI Emerging Markets ETF (IEMG) offers broader exposure to emerging markets with higher yield and larger assets under management [1][2] Cost & Size Comparison - NZAC has an expense ratio of 0.12% and AUM of $183.2 million, while IEMG has a lower expense ratio of 0.09% and significantly larger AUM of $138.8 billion [3][4] - The 1-year return for NZAC is 15.8%, compared to IEMG's 35.3%, and the dividend yield for NZAC is 1.9%, while IEMG offers a higher yield of 2.5% [3][4] Performance & Risk Metrics - Over the past five years, NZAC experienced a maximum drawdown of -28.29%, while IEMG had a larger drawdown of -37.16% [5] - An investment of $1,000 in NZAC would have grown to $1,499 over five years, compared to $1,106 for IEMG [5] Portfolio Composition - IEMG holds 2,673 stocks with a sector focus on technology (28%), financial services (21%), and consumer cyclicals (11%), featuring major positions in Taiwan Semiconductor Manufacturing, Samsung Electronics, and Tencent Holdings [6] - NZAC consists of 688 holdings with a focus on ESG criteria, led by Nvidia, Apple, and Microsoft, appealing to investors prioritizing sustainability [7] Investor Implications - IEMG presents advantages for investors with its lower expense ratio, higher dividend yield, and better recent performance, making it attractive for those seeking to enhance dividend income [8]