Does Your ETF Portfolio Reflect Your Goals? A Look at the SPDR Global Stock Market ETF vs. the Climate Paris Aligned ETF.
One offers broad market exposure at a lower cost; the other screens for climate-conscious investing with a higher dividend yield.
Overview
State Street SPDR Portfolio MSCI Global Stock Market ETF (NYSEMKT:SPGM) offers a broad-market core at a lower cost, while State Street SPDR MSCI ACWI Climate Paris Aligned ETF (NASDAQ:NZAC) provides a specialized, ESG-screened global exposure.
Both funds come from the State Street stable but address different investor philosophies. While the State Street SPDR Portfolio MSCI Global Stock Market ETF provides a traditional, low-cost core for global equity exposure, the State Street SPDR MSCI ACWI Climate Paris Aligned ETF overlays a specific climate-conscious framework. This match-up compares a broad, all-cap global strategy against a portfolio specifically reweighted to meet the carbon-reduction goals of the Paris Agreement, providing two distinct ways to own the world market.
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-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
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Originally published at www.fool.com.