IXUS vs. NZAC: Broad International Exposure or Climate-Focused Investing -- Which ETF Is the Better Buy?
IXUS offers broad, low-cost diversification across thousands of non-U.S. stocks with a higher dividend yield, while NZAC's climate-focused approach has delivered slightly better five-year returns.
Overview
Comparing the iShares Core MSCI Total International Stock ETF (NASDAQ:IXUS) and the State Street SPDR MSCI ACWI Climate Paris Aligned ETF (NASDAQ:NZAC) comes down to a choice between ultra-low-cost, ex-U.S. diversification and a more targeted global strategy built around climate-aligned corporate performance.
While both funds offer global equity exposure, they differ fundamentally in geographic and thematic construction. IXUS prioritizes low-cost coverage of developed and emerging markets outside the U.S., while NZAC layers in a climate-focused screen that -- notably -- still includes domestic U.S. equities.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. 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.