The SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) has a lower expense ratio of 0.12% compared to the iShares MSCI ACWI ex US ETF (ACWX) at 0.32%. NZAC focuses more on technology while ACWX leans towards financials and industrials. Both experienced similar maximum drawdowns in the past five years.

NZAC integrates climate-focused screening and includes U.S. stocks, while ACWX holds only non-U.S. companies. NZAC has outperformed over five years with a 22.0% 1-year return, while ACWX offers a higher yield at 2.7% and significantly more assets under management at $8.4 billion.

ACWX costs more than NZAC with a higher expense ratio, but it offers a higher yield, making it appealing for those seeking more income from their international allocation. ACWX tracks large- and mid-cap stocks outside the U.S. and has a focus on financial services, technology, and industrials.

NZAC is designed around climate alignment, screening out fossil fuels and controversial weapons while providing broad diversification across developed and emerging markets. ACWX, on the other hand, offers pure international exposure, excluding U.S. stocks. Investors must decide between climate considerations or a dedicated international allocation in their portfolio strategy.

Read more at Yahoo Finance: One Fund Screens for Climate Goals, One Excludes the U.S.