Comparing Global ETFs: Vanguard's VXUS vs. State Street's Climate-Focused NZAC
VXUS offers broader diversification with 8,600+ holdings and lower costs, while NZAC targets climate-aligned companies with concentrated tech exposure.
Overview
The Vanguard Total International Stock ETF (NASDAQ:VXUS) provides broad, low-cost exposure to non-U.S. markets, while the State Street SPDR MSCI ACWI Climate Paris Aligned ETF (NASDAQ:NZAC) offers a global portfolio filtered for climate-risk mitigation.
Investors often look at international funds to reduce domestic concentration, but these two funds approach global diversification differently. While VXUS avoids U.S. stocks to complement a domestic portfolio, NZAC spans developed and emerging markets worldwide, including the U.S., while targeting companies aligned with net-zero climate goals.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.