SPDW charges a lower expense ratio and offers a higher yield than NZAC. SPDW posted a stronger 1-year total return but has a slightly deeper 5-year drawdown. NZAC tilts heavily toward tech and ESG screens, while SPDW emphasizes financials and industrials.
SPDR Portfolio Developed World ex-US ETF (NYSEMKT:SPDW) stands out for its ultra-low cost, higher yield, and greater international diversification, while SPDR MSCI ACWI Climate Paris Aligned ETF (NASDAQ:NZAC) leans into technology and climate-focused ESG screens. This comparison looks at two global equity ETFs with very different approaches.
SPDW comes in as the more affordable option with an expense ratio of 0.03%, undercutting NZAC’s 0.12%. Yield seekers may also find SPDW appealing, as its payout is higher than NZAC’s. SPDW tracks developed international equities outside the United States, with financial services, industrials, and technology as its largest sectors.
NZAC is built around a climate-focused ESG mandate, screening for companies aligned with the Paris Agreement. Its portfolio leans heavily into technology and includes significant allocations to cash, financials, and global giants like Nvidia, Apple, and Microsoft. SPDW and NZAC both provide access to international stocks but define “international” very differently.
SPDW offers investors broad diversification by holding thousands of stocks across Japan, Europe, the U.K., Canada, and Australia and charges an ultra-low 0.03% expense ratio. NZAC includes both U.S. and emerging markets and applies a strict Paris Agreement climate screen that excludes fossil fuel producers, tobacco, and high-carbon companies.
If you want straightforward, low-cost exposure to developed international markets with strong dividend income and no geographic overlap with U.S. holdings, SPDW makes the most sense. If climate-conscious investing matters to you and you’re comfortable with a global approach that includes U.S. tech giants, NZAC is the better choice here.
Read more at Yahoo Finance: Low-Cost SPDW vs. Values-Based NZAC