3 days ago
5
Sarah Sidlow, The Motley Fool
Thu, February 12, 2026 astatine 8:13 AM CST 4 min read
Both the State Street SPDR Portfolio MSCI Global Stock Market ETF (NYSEMKT:SPGM)and the State Street SPDR MSCI ACWI Climate Paris Aligned ETF (NASDAQ:NZAC)are planetary equity ETFs from SPDR, but they instrumentality distinctly antithetic approaches. SPGM targets the afloat planetary banal marketplace with implicit 2,900 holdings, portion NZAC pursues a climate-focused strategy, screening for companies aligned with the Paris Agreement, and covers less securities. This examination breaks down their costs, performance, risk, and portfolio construction.
| Issuer | SPDR | SPDR |
| Expense ratio | 0.09% | 0.12% |
| 1-yr instrumentality (as of 2/4/2026) | 23.5% | 17.6% |
| Dividend yield | 1.8% | 1.9% |
| Beta | 1.02 | 1.05 |
| AUM | $1.5 billion | $182 million |
Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.
SPGM is somewhat much affordable with a little disbursal ratio, portion NZAC charges a humble premium for its clime alignment. NZAC besides offers a marginally higher dividend yield, which whitethorn entreaty to income-focused investors.
| Max drawdown (5 y) | -23.7% | -18.01% |
| Growth of $1,000 implicit 5 years | $1,553 | $1,452 |
NZAC tracks an scale designed to align with the Paris Agreement, screening planetary large- and mid-cap stocks for clime hazard and opportunity. The fund’s ESG surface distinguishes it from accepted planetary ETFs, and it has been disposable for implicit 11 years. With 688 holdings, it is much concentrated than SPGM, though its assemblage premix is similar: 32.42% successful accusation technology, 17.3% successful financials, and 11% successful industrials. The largest positions are Nvidia, Apple, and Microsoft, reflecting a continued tech tilt.
SPGM spreads assets crossed much than 2,900 stocks, weighting 24.5% to technology, 17% to fiscal services, and 13% to industrials. Its apical holdings are besides Nvidia, Apple, and Microsoft, but with somewhat little weights. SPGM’s broader diversification and lack of an ESG surface mean it intimately mirrors the planetary equity market, portion NZAC’s attack whitethorn entreaty to those prioritizing sustainability.
For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.
The biggest differentiator betwixt these 2 exchange-traded funds is NZAC’s absorption connected environmental, social, and governance investing. This fashionable benignant of investing prioritizes companies that gain precocious scores successful categories related to this investing theme. Proponents of ESG investing whitethorn beryllium particularly focused connected supporting non-financial initiatives they attraction about, similar greenish practices oregon societal responsibility. Others reason that a absorption connected these ideas is besides bully business, arsenic companies with precocious ESG scores besides thin to execute well. A look astatine NZAC’s apical holdings whitethorn carnivore this out. However, ESG investing besides has opponents who constituent to issues similar greenwashing, governmental vulnerability, oregon higher costs of business. Indeed, NZAC’s disbursal ratio is notably higher than SPDR’s, reflecting an accrued outgo to negociate the ESG-focused fund.
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