How Does This ESG Fund Compare to the Vanguard Total World Stock ETF?
VT's more than 10,000 holdings deliver broader diversification and lower costs, while NZAC's climate screen targets ESG-aligned outcomes with concentrated exposure.
Overview
The Vanguard Total World Stock ETF (NYSEMKT:VT) provides broad global exposure at a lower cost, while the State Street SPDR MSCI ACWI Climate Paris Aligned ETF (NASDAQ:NZAC) applies specific environmental screens.
Global equity ETFs allow investors to capture the growth of companies across developed and emerging markets in a single trade. While both funds look to the global stage, they differ in their selection criteria and the sheer volume of companies they include in their respective portfolios.
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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Source
Originally published at www.fool.com.