Comparing the iShares Core MSCI Total International Stock ETF (NASDAQ:IXUS) and the State Street SPDR MSCI ACWI Climate Paris Aligned ETF (NASDAQ:NZAC) comes down to a choice between ultra-low-cost, ex-U.S. diversification and a more targeted global strategy built around climate-aligned corporate performance.
While both funds offer global equity exposure, they differ fundamentally in geographic and thematic construction. IXUS prioritizes low-cost coverage of developed and emerging markets outside the U.S., while NZAC layers in a climate-focused screen that — notably — still includes domestic U.S. equities.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
IXUS is the cheaper option, with a low 0.07% expense ratio. Both funds pay a dividend, but NZAC's climate-aligned strategy results in a lower yield than the IXUS — likely a byproduct of NZAC's heavier tech weighting and its inclusion of domestic growth companies, which tend to pay smaller dividends than more established international names.
Launched in 2014, NZAC aims to mirror the total return of the MSCI ACWI Climate Paris Aligned Index. It holds 629 stocks and applies an ESG screen designed to keep the portfolio aligned with Paris Agreement climate goals. The portfolio leans most heavily into technology at 36.6%, followed by financial services at 16.2%, and healthcare at 9.2%. Its largest positions include Nvidia (NASDAQ:NVDA) at 5.7%, Apple (NASDAQ:AAPL) at 4.6%, and Microsoft (NASDAQ:MSFT) at 2.9%.
IXUS casts a much wider net, with a portfolio of 4,335 large-, mid-, and small-cap companies — all outside the United States. Its top holdings include Taiwan Semiconductor Manufacturing (TWSE:2330) at 4.4%, Samsung Electronics (KOSE:A005930) at 2.3%, and Sk Hynix (KOSE:A000660) at 2.2%. The fund's top sectors include technology at 22.4%, financial services at 22.3%, and industrials at 14.9%. Unlike NZAC, it offers broad market exposure without any environmental or ESG mandates. IXUS was launched in 2012.
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