A Penny Saved, and a World to Invest In

Now, I’ve seen a good many things in my time, and one thing remains constant: folks are always lookin’ for a way to make a dollar stretch. These here Exchange Traded Funds – ETFs, they call ’em – are a modern contraption for just that. We’re lookin’ at two of ’em today: the SPDR Portfolio Developed World ex-US ETF – a mouthful, I admit – and the SPDR MSCI ACWI Climate Paris Aligned ETF. One’s a straightforward proposition, the other… well, it’s got a bit of fancy dressin’ on it. I reckon a sensible investor likes to know what they’re gettin’ for their money, and a dividend hunter, well, we like to see that income comin’ in regular as clockwork.

The SPDW, bless its simple heart, just buys shares in companies ‘cross the pond – Europe, Japan, the like – leavin’ the American ones alone. It’s a broad sweep, like castin’ a net for fish. The NZAC, now, that one’s a bit more particular. It’s got itself all worked up about climate change, and only buys companies that meet its standards. Noble, perhaps, but sometimes a fella just wants a return on his investment, not a pat on the back.

A Quick Look at the Numbers

Metric	NZAC	SPDW
Issuer	SPDR	SPDR
Expense Ratio	0.12%	0.03%
1-yr Return (as of 2026-01-22)	15.4%	31.3%
Dividend Yield	1.9%	3.3%
AUM	$180 million	$33.4 billion

The 1-yr return represents total return over the trailing 12 months.

Now, a penny saved is a penny earned, and that expense ratio on the SPDW – a mere 0.03% – is a sight for sore eyes. The NZAC, at 0.12%, is askin’ for a bit more of your hard-earned cash just to manage the fund. And for a dividend hunter, that 3.3% yield on the SPDW is sweeter than a peach cobbler on a summer day.

How They’ve Performed (and a bit of Risk)

Metric	NZAC	SPDW
Max Drawdown (5 yr)	-28.29%	-30.20%
Growth of $1,000 over 5 years	$1,501	$1,321

Now, the NZAC did grow a bit more over five years, but a savvy investor doesn’t just chase growth; they look for consistency. And that SPDW, it’s a steady sort, like a good plow horse.

What’s Inside These Funds?

The SPDW, it’s got a bit of everything – financial companies, industries, a touch of technology. It’s spread out, like butter on a warm biscuit. With over 2,300 holdings, you’re not relyin’ on any one company to make or break your investment. They’ve got shares in ASML, Roche, even Samsung. Solid, dependable names.

The NZAC, now, that one’s leanin’ heavily into technology – a good 35% of its holdings. It’s got Nvidia, Apple, Microsoft… all fine companies, mind you, but puttin’ all your eggs in one basket – or in this case, one sector – is a risky proposition. And it’s got a lot of cash just sittin’ there, waitin’ for the right opportunity. Sometimes, a fella needs to put his money to work, not let it gather dust.

If you’re lookin’ for a bit more information on these ETFs, there’s plenty of guides out there. But remember, a guide can only point you in the right direction; it’s up to you to choose the path that’s best for your own pocketbook.

What Does This Mean for You?

These two funds both offer access to international stocks, but they do it in different ways. The SPDW sticks to developed markets, leavin’ the U.S. behind. The NZAC takes a global approach, includin’ American tech giants but excludin’ companies that don’t meet its climate standards. Last year, the SPDW delivered stronger returns, but both funds outperformed the S&P 500.

The SPDW offers broad diversification, holdin’ thousands of stocks across Japan, Europe, the U.K., Canada, and Australia. And it charges a measly 0.03% expense ratio – that’s just $3 per $10,000 invested. The NZAC includes both U.S. and emerging markets, and it applies a strict climate screen, excludin’ fossil fuel producers and tobacco companies. It’s smaller, more specialized, and leans heavily toward technology.

If you want straightforward, low-cost exposure to developed international markets with a strong dividend income, the SPDW makes the most sense. If climate-conscious investing matters to you, and you’re comfortable with a global approach that includes U.S. tech giants and ESG screening, the NZAC is the better choice. But remember, a good investment is about more than just principles; it’s about puttin’ money in your pocket.

A Few Words to the Wise

ETF: Exchange-traded fund that holds a basket of securities and trades on an exchange like a stock.
Expense Ratio: Annual fund operating costs expressed as a percentage of the fund’s average assets.
Dividend Yield: Annual dividends paid by a fund divided by its current share price, shown as a percentage.
Total Return: Investment performance including price changes plus all dividends and distributions, assuming reinvestment.
Beta: Measure of a fund’s volatility compared with a benchmark index, often the S&P 500.
AUM: Assets under management; the total market value of all assets held by the fund.
Max Drawdown: The largest peak-to-trough decline in value over a specified period.
Developed Markets: Economically advanced countries with mature financial systems and stable regulatory environments.
ESG: Environmental, social, and governance criteria used to evaluate and screen investments.
Paris-aligned: Investment approach aiming to be consistent with the Paris Agreement climate goals on limiting global warming.
Sector Allocation: How a fund’s holdings are distributed across different industries, such as technology or financials.
Single-company Risk: Risk that poor performance of one holding significantly impacts the overall portfolio.

2026-01-24 18:34

A Quick Look at the Numbers

How They’ve Performed (and a bit of Risk)

What’s Inside These Funds?

What Does This Mean for You?

A Few Words to the Wise

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