ETFs: The Usual Suspects

by

Right. So, we’re talking ETFs. Exchange Traded Funds. Basically, someone’s taken a bunch of stocks, shoved them in a neat little package, and charged you a fee for the privilege. Innovative, isn’t it? Today’s contestants: the State Street SPDR MSCI ACWI Climate Paris Aligned ETF (NASDAQ:NZAC) and the iShares Core MSCI Total International Stock ETF (NASDAQ:IXUS). Let’s be honest, they both want your money. The question is, which one deserves it less?

NZAC, they’re selling you a dream. A climate-aligned, all-country portfolio. It sounds… virtuous. IXUS, meanwhile, just wants to give you international exposure without the fuss. No moralizing, just stocks. I’m starting to like IXUS already. It’s like the cynical friend who doesn’t pretend to be better than everyone else.

The Fine Print (Because There Always Is)

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

See that expense ratio? NZAC is costing you more to pretend to save the planet. And look at the AUM. IXUS has actual money behind it. NZAC is practically a passion project. A very expensive passion project.

Performance & Risk: Or, How Much Could You Lose?

Metric NZAC IXUS
Max drawdown (5 y) -28.31% -30.05%
Growth of $1,000 over 5 years $1,455 $1,333

Okay, so NZAC slightly outperformed over five years. But let’s be real, past performance is a lovely story we tell ourselves to justify present decisions. It’s not a guarantee of anything. And frankly, the difference is negligible. It’s like choosing between two shades of beige. You’re still getting beige.

What’s Actually Inside These Things?

IXUS is holding over 4,100 international stocks. It’s broad, diversified, and… frankly, a bit boring. Top holdings include Taiwan Semiconductor Manufacturing, Samsung, and ASML. Solid companies. No surprises. It’s the reliable friend who always shows up on time. You can depend on them. Which, let’s face it, is rare these days.

NZAC, on the other hand, is more… curated. Only 678 holdings. A tilt towards technology. And a surprising amount of cash. Top holdings? Nvidia, Apple, Microsoft. The usual suspects. It’s like they’re saying, “We’re saving the planet, but also, we really like tech stocks.” It feels… conflicted. Like a politician at a fundraising gala.

So, Which One?

Look, both of these ETFs are fine. They’ll probably both make you money. Or lose you money. It’s the market. It does what it wants. But here’s my brutally honest take: If you actually care about climate change, donate directly to a reputable environmental organization. Don’t rely on an ETF to solve the problem. And if you’re just looking for international exposure, IXUS is the less pretentious, more efficient option. It doesn’t need to tell you it’s doing good. It just is. And honestly, in this world, that’s refreshing.

The SPDR ETF does include U.S. stocks, and it’s been the better long-term performer, largely because it includes the “Magnificent Seven.” It’s returned 18.5% over the past year and has a five-year annualized return of 10.8%. Its 10-year annualized return is even better at 12.2%. But let’s not mistake correlation for causation. It’s riding the coattails of a bull market, not saving the world.

The iShares ETF is much broader and invests only in stocks listed outside the U.S., making it 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’re 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.

Read More

2026-03-03 23:53