Jan 18, 2026 2 min read 0 views

Two Global ETFs Show Divergent Paths for Investors

The SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) and iShares MSCI ACWI ex US ETF (ACWX) present contrasting investment approaches, with NZAC offering lower costs and climate-focused screening while ACWX provides higher yields and broader international diversification.

Two Global ETFs Show Divergent Paths for Investors

The SPDR MSCI ACWI Climate Paris Aligned ETF (NASDAQ:NZAC) and the iShares MSCI ACWI ex US ETF (NASDAQ:ACWX) track global equities but follow different strategies. NZAC integrates climate-focused screening aligned with Paris Agreement goals and includes U.S. stocks, while ACWX holds only non-U.S. companies.

NZAC charges a 0.12% expense ratio, yields 1.9%, and has $182.0 million in assets under management. Its one-year return as of January 9, 2026, was 22.0%, with a beta of 1.06. The fund's five-year maximum drawdown was -28.29%, and a $1,000 investment grew to $1,501 over that period.

ACWX carries a 0.32% expense ratio, more than double that of NZAC, and yields 2.7%. It manages $8.4 billion in assets. Its one-year return was 34.2%, with a beta of 1.02. The fund's five-year maximum drawdown was -30.06%, and a $1,000 investment grew to $1,267.

NZAC tilts heavily toward technology, with 35% sector weight, and holds U.S. giants like Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT). ACWX holds around 1,700 stocks and has operated for 17 years. Its largest sector weights are financial services at 25%, technology at 15%, and industrials at 15%. Top positions include Taiwan Semiconductor Manufacturing (NYSE:TSM), Tencent (OTC:TCEHY), and ASML Holding (NASDAQ:ASML).

Both ETFs experienced similar maximum drawdowns over the past five years. NZAC has outperformed over five years, while ACWX is much larger and more liquid.

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