ETF Comparison: iShares vs. State Street
The iShares Core MSCI Total International Equity ETF (Ixus) and the State Street SPDR MSCI ACWI Climate Paris Alignment ETF (NZAC) each offer exposure to international equities, but they serve different purposes within a portfolio. Essentially, while both funds provide international reach, Ixus focuses on non-U.S. stocks in both developed and emerging markets, thereby enhancing geographic diversification. On the other hand, the State Street option adopts a broader global strategy, including U.S. stocks but filtered through environmental criteria to align with the Paris Agreement.
Cost and Size Snapshot
| Metric | NZAC | Ixus |
|---|---|---|
| Publisher | SPDR | iShares |
| Expense Ratio | 0.12% | 0.07% |
| 1-Year Return (as of May 1, 2026) | 25.22% | 31.70% |
| Dividend Yield | 1.82% | 2.94% |
| Assets Under Management | $187.6 million | $56.1 billion |
The Ixus fund comes with an expense ratio of 0.07%, which is lower than the 0.12% for the NZAC fund. This makes Ixus a more feasible choice for long-term holders. Additionally, for those seeking income, Ixus offers a notably higher dividend yield—about 1.12 percentage points more than NZAC.
Performance and Risk Comparison
| Metric | NZAC | Ixus |
|---|---|---|
| Maximum Drawdown (5 Years) | (28.30%) | (30.10%) |
| $1,000 Growth in 5 Years (Total Return) | $1,580 | $1,501 |
Portfolio Composition
The iShares Core MSCI Total International Stock ETF boasts around 4,160 holdings, primarily in Financial Services (23.00%), Industrials (16.00%), and Technology (16.00%). Among its top positions, you’ll find ASML Holding (1.32%), Tencent Holdings (0.90%), and HSBC Holdings (0.75%). Established in 2012, it distributes a trailing 12-month dividend of $2.74 per share, offering broader market exposure compared to climate-managed funds due to fewer restrictions.
On the flip side, the NZAC fund is more concentrated, encompassing about 672 stocks and heavily weighted in Technology (30.00%), cash (17.00%), and Financial Services (13.00%). Its key assets include Nvidia (5.87%), Apple (4.49%), and Microsoft (3.30%). Launched in 2014, this fund tracks an index that aims to mitigate climate risk and has a 12-month year-end dividend of $0.82 per share, focusing on net-zero transition targets while still maintaining a global presence.
Investor Implications
While adherence to climate goals is a primary draw for many, the State Street SPDR MSCI ACWI Climate Paris Alignment ETF offers significant appeal due to its heavy weighting in the technology sector, especially with all seven “Magnificent Seven” stocks among its top holdings. For many investors, these tech stocks are accessed through employer-sponsored retirement plans.
Despite the ecological constraints, the NZAC has historically outperformed the Ixus. Over the past decade, NZAC delivered a return of 208.4%, dividends included, while Ixus lagged behind with a total return of 143.4% over the same period.
