Key Points
iShares Core MSCI Total International Stock ETF carries a lower expense ratio and a higher dividend yield than the SPDR MSCI ACWI Climate Paris Aligned ETF.
The SPDR MSCI ACWI Climate Paris Aligned ETF leans heavily into technology and ESG screens, while the iShares Core MSCI Total International Stock ETF focuses on international developed markets with more financials and industrials.
iShares Core MSCI Total International Stock ETF is vastly larger and more liquid, but also showed a deeper five-year drawdown and slower long-term growth.
The State Street SPDR MSCI ACWI Climate Paris Aligned ETF (NASDAQ:NZAC) and iShares Core MSCI Total International Stock ETF (NASDAQ:IXUS) differ most in market coverage, sector tilt, and ESG focus, with IXUS offering a higher yield and much greater scale.
Both NZAC and IXUS track broad global equities, but their approaches diverge: NZAC aims for a climate-friendly, all-country portfolio with an ESG overlay, while IXUS delivers expansive international exposure excluding U.S. stocks. This comparison looks at cost, performance, risk, holdings, and structural features to help clarify which may appeal depending on your portfolio needs.
Snapshot (cost & size)
| Metric | NZAC | IXUS |
|---|---|---|
| Issuer | SPDR | IShares |
| Expense ratio | 0.12% | 0.07% |
| 1-yr return (as of 2026-02-27) | 18.0% | 34.7% |
| Dividend yield | 1.9% | 3.0% |
| Beta | 0.93 | 0.75 |
| AUM | $173.0 million | $57.6 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.
IXUS charges a lower annual fee and offers a higher payout, making it more affordable and income-oriented compared to NZAC.
Performance & risk comparison
| Metric | NZAC | IXUS |
|---|---|---|
| Max drawdown (5 y) | -28.31% | -30.05% |
| Growth of $1,000 over 5 years | $1,455 | $1,333 |
What's inside
IXUS holds over 4,100 international stocks, spanning financial services (21%), industrials (15%), and basic materials (13%), with its largest stakes in Taiwan Semiconductor Manufacturing(NYSE:TSM), Samsung Electronics Ltd (005930.KS), and ASML Holding Nv(NASDAQ:ASML). With more than 13 years on the market, IXUS delivers broad, non-U.S. developed and emerging market exposure without an ESG filter or climate mandate—its focus is purely on tracking the total international equity universe.
NZAC, by contrast, is more concentrated (678 holdings) and tilts toward technology (34%), with meaningful allocations to cash and financials. Its top holdings—Nvidia Corp(NASDAQ:NVDA), Apple Inc(NASDAQ:AAPL), and Microsoft Corp(NASDAQ:MSFT)—underscore its global, tech-heavy and U.S.-centric flavor. NZAC’s ESG screen and climate alignment could appeal to investors seeking to address climate risk in their equity exposure.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
These are both solid ETFs with histories of strong performance. Both could certainly play a role in a diversified portfolio.
The SPDR ETF includes U.S. stocks with a focus on those that meet certain climate-related screens. It has been the better long-term performer, as it includes all of the Magnificent Seven stocks, among other high performers. It has returned 18.5% over the past year and has a five-year annualized return of 10.8%. Its 10-year annulized return is even better at 12.2%.
The iShares ETF is much broader and invests only in stocks listed outside the U.S., making it much more diversified. While its five- and 10-year returns trail the SPDR ETF, it has returned 32% over the past year as international stocks have outperformed U.S. stocks and could continue to outperform this year.
If you are looking to diversify internationally, IXUS is probably the better bet. But if you support ESG investing and are looking for U.S. technology-oriented alpha in your portfolio, then NZAC is the better choice.
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Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Apple, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
