The State Street SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) focuses on climate-conscious ESG screening globally, while the iShares Core MSCI Emerging Markets ETF (IEMG) offers broader emerging markets exposure with higher assets under management and yield. Both provide diversified equity exposure but differ in region, style, and focus.

IEMG has a lower expense ratio of 0.09% compared to NZAC’s 0.12% and a higher dividend yield at 2.5% versus 1.9%. The 1-year return for IEMG is 35.3%, outperforming NZAC’s 15.8%. Beta for IEMG is 0.63 while NZAC’s is 1.06, indicating different levels of price volatility relative to the S&P 500.

IEMG holds 2,673 stocks in emerging markets with a sector tilt towards technology, financial services, and consumer cyclicals. Top positions include Taiwan Semiconductor, Samsung Electronics, and Tencent Holdings. NZAC blends developed and emerging markets with a focus on climate alignment, led by Nvidia, Apple, and Microsoft, appealing to sustainability-focused investors.

IEMG may be preferred for lower fees, higher dividend yield, and recent returns, while NZAC has outperformed over the past five years. IEMG’s performance is tied to emerging markets, while NZAC benefits from exposure to U.S.-based tech stocks. Consider investment goals and preferences when choosing between the two ETFs.

Read more at Nasdaq: IEMG Offers Broader Market Reach Than NZAC