SPDW fees a decrease expense ratio and affords the next yield than NZAC.
SPDW posted a stronger 1-year complete return however has a barely deeper 5-year drawdown.
NZAC tilts closely towards tech and ESG screens, whereas SPDW emphasizes financials and industrials.
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SPDR Portfolio Developed World ex-US ETF (NYSEMKT:SPDW) stands out for its ultra-low price, increased yield, and better worldwide diversification, whereas SPDR MSCI ACWI Local weather Paris Aligned ETF (NASDAQ:NZAC) leans into expertise and climate-focused ESG screens.
This comparability appears to be like at two world fairness ETFs with very completely different approaches: NZAC incorporates a Paris-aligned ESG mandate and a notable expertise tilt, whereas SPDW offers broad entry to developed markets exterior america at a fraction of the price. Each goal diversified publicity however cater to distinct investor preferences round sustainability, regional focus, and revenue.
Metric | NZAC | SPDW |
|---|
Issuer | SPDR | SPDR |
Expense ratio | 0.12% | 0.03% |
1-yr return (as of 2026-01-22) | 15.4% | 31.3% |
Dividend yield | 1.9% | 3.3% |
AUM | $180 million | $33.4 billion |
The 1-yr return represents complete return over the trailing 12 months.
SPDW is available in because the extra inexpensive choice with an expense ratio of 0.03%, undercutting NZAC’s 0.12%. Yield seekers may discover SPDW interesting, as its payout is increased than NZAC’s.
Metric | NZAC | SPDW |
|---|
Max drawdown (5 y) | -28.29% | -30.20% |
Development of $1,000 over 5 years | $1,501 | $1,321 |
SPDW tracks developed worldwide equities exterior america, with monetary companies (23%), industrials (19%), and expertise (11%) as its largest sectors. With 2,390 holdings and almost 20 years of buying and selling historical past, its high positions—akin to ASML, Roche, and Samsung—are broadly diversified and comparatively small in portfolio weight, lowering single-company danger.
In contrast, NZAC is constructed round a climate-focused ESG mandate, screening for firms aligned with the Paris Settlement. Its portfolio leans closely into expertise (35%) and contains vital allocations to money, financials, and world giants like Nvidia, Apple, and Microsoft. This strategy could attraction to these in search of to deal with local weather danger of their investments.
For extra steering on ETF investing, take a look at the total information at this hyperlink.
SPDW and NZAC each present entry to worldwide shares, however they outline “worldwide” very in another way. SPDW sticks to developed markets excluding the U.S., whereas NZAC takes a world strategy that features American tech giants however excludes firms failing local weather standards. In 2025, SPDW’s simple technique delivered stronger returns than NZAC’s values-based screening, although each funds outperformed the S&P 500.
SPDW affords traders broad diversification by holding hundreds of shares throughout Japan, Europe, the U.Ok., Canada, and Australia and fees an ultra-low 0.03% expense ratio ($3 per $10,000 invested). NZAC contains each U.S. and rising markets, and it applies a strict Paris Settlement local weather display that exclude fossil gas producers, tobacco, and high-carbon firms. With a 0.12% expense ratio and simply $180 million in belongings, it is smaller and extra specialised, tilting closely towards expertise.
If you would like simple, low-cost publicity to developed worldwide markets with robust dividend revenue and no geographic overlap with U.S. holdings, SPDW makes essentially the most sense. If climate-conscious investing issues to you and also you’re comfy with a world strategy that features U.S. tech giants, decrease dividends, and ESG screening that will exclude whole sectors, NZAC is the higher alternative right here.
ETF: Alternate-traded fund that holds a basket of securities and trades on an alternate like a inventory.
Expense ratio: Annual fund working prices expressed as a proportion of the fund’s common belongings.
Dividend yield: Annual dividends paid by a fund divided by its present share worth, proven as a proportion.
Whole return: Funding efficiency together with worth adjustments plus all dividends and distributions, assuming reinvestment.
Beta: Measure of a fund’s volatility in contrast with a benchmark index, typically the S&P 500.
AUM: Belongings below administration; the full market worth of all belongings held by the fund.
Max drawdown: The most important peak-to-trough decline in worth over a specified interval.
Developed markets: Economically superior international locations with mature monetary techniques and secure regulatory environments.
ESG: Environmental, social, and governance standards used to judge and display investments.
Paris-aligned: Funding strategy aiming to be according to the Paris Settlement local weather targets on limiting world warming.
Sector allocation: How a fund’s holdings are distributed throughout completely different industries, akin to expertise or financials.
Single-company danger: Threat that poor efficiency of 1 holding considerably impacts the general portfolio.
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Worldwide ETFs: Low-Value SPDW vs. Values-Primarily based NZAC was initially revealed by The Motley Idiot
