URTH vs. NZAC: Climate or Cash?

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Ladies and gentlemen, gather ’round! Here we have two ETFs duking it out in the ring of global investing: URTH, the grizzled old lion with a 0.24% expense ratio and $6.5 billion in assets, and NZAC, the spry climate-conscious mule with half the cost and a third the liquidity. One’s a seasoned vet, the other a noble steed with a Parisian accent. But which one’s less likely to kick you in the teeth? Let’s find out.

Both claim to give you “global exposure,” but they’re like two chefs at a buffet-URTH grabs everything, while NZAC picks at the salad, avoiding the meat (i.e., fossil fuels). URTH tracks the MSCI World Index like a dog chasing a car, no questions asked. NZAC, meanwhile, filters its portfolio through ESG goggles and whispers sweet nothings to the Paris Agreement. It’s the difference between a glutton and a monk, though both end up with a plate full of tech stocks. You think?

Snapshot (cost & size)

Metric URTH NZAC
Issuer iShares SPDR
Expense ratio 0.24% 0.12%
1-yr return (as of Dec. 16, 2025) 13.9% 12.9%
Beta 1.03 1.05
AUM $6.5 billion $178.1 million

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.

Performance & risk comparison

Metric URTH NZAC
Max drawdown (5 y) (26.06%) (28.29%)
Growth of $1,000 over 5 years $1,645 $1,488

What’s inside

NZAC, our climate-conscious hero, screens out coal, oil, and anything that smells like sin. Its portfolio is a kale smoothie of tech stocks (36% in NVIDIA, because who needs carbon anymore?) and a dash of cash. But let’s not kid ourselves-its $178 million AUM is the financial equivalent of a solo clown in a circus. Meanwhile, URTH is the whole show: 1,320 stocks, twice the fees, and a 60% U.S. bias that makes it feel like your grandpa’s investment advice.

Both funds love tech like it’s the only sector that matters. Apple, Microsoft, and Nvidia dominate like they’re the Three Musketeers of the digital age. But NZAC’s ESG filter is a bit like wearing tinted glasses at a gas station fire-it claims to see the future, but it might miss the present. And don’t get me started on liquidity. URTH’s $6.5 billion is the difference between trading and begging.

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What this means for investors

If you’re the type of person who buys organic kale and feels guilty about airplane flights, NZAC might be your soulmate. It’s the fund for when you want to say you’re saving the planet while holding 687 stocks. But if you’re more of a “just give me the S&P and a bag of popcorn” investor, URTH’s your man. It’s the financial equivalent of a steak dinner: simple, messy, and occasionally volatile.

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And let’s not forget the elephant in the room: fees. NZAC’s 0.12% sounds impressive until you realize it’s still a rounding error compared to the cost of your Netflix subscription. Meanwhile, URTH’s 0.24% is the price of admission to a world where no one asks if your portfolio aligns with your morals. It’s the Wall Street version of a buffet-help yourself, but don’t blame us if you get food poisoning.

The real question isn’t which fund is better-it’s whether you’re investing for the climate or for the laughs. Because if history teaches us anything, it’s that next year’s hot ETF will be about quantum computing or space cows. So choose wisely… or just flip a coin. 🚀

Glossary

ETF: Exchange-traded fund, a basket of securities traded on an exchange like a stock.
ESG: Environmental, Social, and Governance; criteria for evaluating a company’s ethical impact and sustainability practices.
Climate screen: An investment filter that selects or excludes companies based on climate-related criteria.
Expense ratio: The annual fee, as a percentage of assets, charged by a fund to cover operating costs.
Liquidity: How easily an asset can be bought or sold in the market without affecting its price.
Drawdown: The percentage decline from a fund’s peak value to its lowest point over a specific period.
Beta: A measure of an investment’s volatility compared to the overall market, often the S&P 500.
AUM: Assets under management; the total market value of assets a fund manages for investors.
Dividend yield: Annual dividends paid by a fund or stock divided by its current price, shown as a percentage.
Sector tilt: When a fund allocates more assets to certain industries or sectors than the broader market.
Paris Agreement: An international treaty aiming to limit global warming by reducing greenhouse gas emissions.
Developed markets: Countries with advanced economies and established financial markets, such as the US, UK, and Japan.

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2025-12-27 18:13