International ETFs: Low-Cost SPDW vs. Values-Based NZAC

• SPDW charges a little disbursal ratio and offers a higher output than NZAC.

• SPDW posted a stronger 1-year full instrumentality but has a somewhat deeper 5-year drawdown.

• NZAC tilts heavy toward tech and ESG screens, portion SPDW emphasizes financials and industrials.

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SPDR Portfolio Developed World ex-US ETF (NYSEMKT:SPDW) stands retired for its ultra-low cost, higher yield, and greater planetary diversification, portion SPDR MSCI ACWI Climate Paris Aligned ETF (NASDAQ:NZAC) leans into exertion and climate-focused ESG screens.

This examination looks astatine 2 planetary equity ETFs with precise antithetic approaches: NZAC incorporates a Paris-aligned ESG mandate and a notable exertion tilt, portion SPDW provides wide entree to developed markets extracurricular the United States astatine a fraction of the cost. Both people diversified vulnerability but cater to chiseled capitalist preferences astir sustainability, determination focus, and income.

The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

SPDW comes successful arsenic the much affordable enactment with an disbursal ratio of 0.03%, undercutting NZAC’s 0.12%. Yield seekers whitethorn besides find SPDW appealing, arsenic its payout is higher than NZAC’s.

SPDW tracks developed planetary equities extracurricular the United States, with fiscal services (23%), industrials (19%), and exertion (11%) arsenic its largest sectors. With 2,390 holdings and astir 2 decades of trading history, its apical positions—such arsenic ASML, Roche, and Samsung—are broadly diversified and comparatively tiny successful portfolio weight, reducing single-company risk.

By contrast, NZAC is built astir a climate-focused ESG mandate, screening for companies aligned with the Paris Agreement. Its portfolio leans heavy into exertion (35%) and includes important allocations to cash, financials, and planetary giants similar Nvidia, Apple, and Microsoft. This attack whitethorn entreaty to those seeking to code clime hazard successful their investments.

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SPDW and NZAC some supply entree to planetary stocks, but they specify "international" precise differently. SPDW sticks to developed markets excluding the U.S., portion NZAC takes a planetary attack that includes American tech giants but excludes companies failing clime criteria. In 2025, SPDW's straightforward strategy delivered stronger returns than NZAC's values-based screening, though some funds outperformed the S&P 500.