Go Big or Go Green: Should You Buy SPGM's Broad Diversification or NZAC's Climate Focus?

1 week ago 8

Sarah Sidlow, The Motley Fool

Tue, December 9, 2025 astatine 7:22 AM CST 6 min read

SPDR Portfolio MSCI Global Stock Market ETF offers broader diversification and a longer way grounds than SPDR MSCI ACWI Climate Paris Aligned ETF.
NZAC applies an ESG surface with a clime focus, portion SPGM is simply a plain-vanilla planetary tracker.
SPGM tin beryllium a bully halfway holding of immoderate portfolio, but investors with an ESG bent whitethorn privation to see adding NZAC arsenic well.
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Both SPDR MSCI ACWI Climate Paris Aligned ETF (NASDAQ:NZAC) and SPDR Portfolio MSCI Global Stock Market ETF (NYSEMKT:SPGM) connection planetary equity exposure, but with antithetic priorities: NZAC layers connected a climate-focused ESG screen, portion SPGM emphasizes broad, low-cost entree to the planetary banal marketplace crossed each capitalizations. Each fund's cost, risk, holdings, and quirks whitethorn entreaty to antithetic investors.

SPDR Portfolio MSCI Global Stock Market ETF stands retired for its broader diversification and larger assets nether management, portion SPDR MSCI ACWI Climate Paris Aligned ETF tilts toward climate-focused ESG screening and somewhat higher exertion exposure.

Metric

NZAC

SPGM

Issuer	SPDR	SPDR
Expense ratio	0.12%	0.09%
1-yr instrumentality (as of Nov. 28, 2025)	13.51%	16.36%
Dividend yield	2.9%	2.8%
Beta	1.04	0.91
AUM	$177.8 million	$1.3 billion

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

SPDR Portfolio MSCI Global Stock Market ETF is much affordable connected expenses, with a 0.09% interest compared to 0.12% for SPDR MSCI ACWI Climate Paris Aligned ETF. Both funds output betwixt 2.8% and 2.9%. The outgo quality whitethorn entreaty to fee-conscious investors gathering a semipermanent halfway position.

Metric

NZAC

SPGM

Max drawdown (5 y)	-18.01%	-23.68%
Growth of $1,000 implicit 5 years	$1,550	$1,570

SPDR Portfolio MSCI Global Stock Market ETF is simply a broad-market tracker with a 13.8-year past and astir 2,890 holdings. It covers exertion (26%), fiscal services (17%), and industrials (12%) with apical positions successful Nvidia, Apple, and Microsoft. Its deficiency of ESG screening oregon different overlays means its portfolio mirrors the planetary equity marketplace without thematic tilts oregon screens.

SPDR MSCI ACWI Climate Paris Aligned ETF, by contrast, applies an ESG surface focused connected clime modulation risks and opportunities, pursuing the criteria of the Paris Aligned Benchmark. Its 687 holdings besides stress exertion (31%), fiscal services (17%), and industrials (11%), with a akin top-three lineup: Nvidia, Apple, and Microsoft. The clime overlay whitethorn entreaty to investors wanting explicit sustainability integration.