Investors compare State Street’s climate-aligned NZAC with iShares’ low-cost emerging markets IEMG for divergent risk and yield profiles.
State Street’s SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) and iShares Core MSCI Emerging Markets ETF (IEMG) provide distinct international equity exposures. NZAC filters 714 global stocks for net-zero alignment, while IEMG targets 2,661 large-, mid-, and small-cap firms in emerging markets.
IEMG carries a lower 0.09% expense ratio versus NZAC’s 0.12%, alongside a higher trailing-12-month yield of 2.20%. IEMG’s top holdings include Taiwan Semiconductor (12.56%) and Samsung Electronics (5.39%), with a $1.85 per-share dividend over the past year.
NZAC’s climate-focused strategy contrasts with IEMG’s broad diversification, appealing to investors prioritizing ESG criteria or emerging market growth, respectively.