4 days ago
8
Sara Appino, The Motley Fool
Sat, December 27, 2025 astatine 9:21 AM CST 5 min read
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NZAC applies an ESG clime surface and leans much heavy into technology, portion URTH follows the accepted developed-markets universe.
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NZAC charges a little disbursal ratio but is overmuch smaller and little liquid than URTH, which whitethorn impact trading costs for larger investors.
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URTH has delivered a stronger five-year full instrumentality and shallower drawdown, but some ETFs stock akin apical holdings and assemblage leaders.
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These 10 stocks could mint the adjacent question of millionaires ›
The iShares MSCI World ETF (NYSEMKT:URTH) and SPDR MSCI ACWI Climate Paris Aligned ETF (NASDAQ:NZAC) disagree astir connected ESG screening, assemblage tilts, and scale, with URTH offering broader liquidity and a longer way grounds portion NZAC targets climate-focused investors astatine a little cost.
Both URTH and NZAC springiness investors entree to planetary equity markets, but they bash truthful with chiseled approaches: URTH tracks developed markets without an ESG overlay, portion NZAC tracks an scale designed to align with the Paris Agreement clime goals, adding an environmental, social, and governance (ESG) filter and including immoderate emerging markets. This examination highlights cardinal differences successful cost, performance, holdings, and hazard to assistance investors measurement which ETF whitethorn align amended with their goals.
| Issuer | iShares | SPDR |
| Expense ratio | 0.24% | 0.12% |
| 1-yr instrumentality (as of Dec. 16, 2025) | 13.9% | 12.9% |
| Beta | 1.03 | 1.05 |
| AUM | $6.5 billion | $178.1 million |
Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.
| Max drawdown (5 y) | (26.06%) | (28.29%) |
| Growth of $1,000 implicit 5 years | $1,645 | $1,488 |
NZAC tracks an ESG-screened scale aiming for clime alignment, resulting successful a assemblage tilt toward exertion (36%) and a notable allocation to currency and others (16%). It holds 687 stocks, with apical positions successful Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT). At 11.1 years old, it is simply a comparatively established option, but its $178.1 cardinal successful assets nether absorption (AUM) makes it overmuch smaller than wide planetary peers. Investors should enactment the ESG screen, which whitethorn exclude high-carbon sectors.
URTH, by contrast, follows a accepted developed-markets scale with 1,320 holdings and a akin exertion bias (28% of assets), but with much value to financials and industrials. Its largest positions are besides Nvidia, Apple, and Microsoft, reflecting the dominance of U.S. tech giants. With $6.5 cardinal successful AUM, URTH offers greater standard and liquidity, which tin trim trading friction for larger trades.
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