NZAC lags URTH in five-year performance despite lower fees and higher dividend yield, data shows.
The SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) has delivered weaker returns than the iShares MSCI World ETF (URTH) over the past five years, despite its lower 0.12% expense ratio and higher 2.06% dividend yield. URTH, with a 0.24% fee and 1.40% yield, also experienced a smaller maximum drawdown during the period.
NZAC tracks a climate-aligned index with 624 holdings, including Nvidia (5.7%), Apple (4.6%), and Microsoft (2.9%), while URTH holds 1,284 developed-market stocks. NZAC’s top sectors are technology (36.6%), financial services (16.2%), and healthcare (9.2%), reflecting its ESG-focused mandate.
Both funds offer global exposure, but NZAC’s stricter climate screen and emerging-market inclusion have not translated into outperformance. URTH’s broader developed-market approach has proven more resilient in volatile conditions.