iShares IXUS ETF Outperforms the SPDR NZAC ETF in Yield and 1 Year Return
Key Points
iShares Core MSCI Total International Stock ETF offers a lower expense ratio and a higher distribution yield than State Street SPDR MSCI ACWI Climate Paris Aligned ETF
State Street SPDR MSCI ACWI Climate Paris Aligned ETF has a smaller portfolio of 672 holdings focused on net-zero goals, while the iShares fund offers broad exposure across 4,160 international stocks
iShares Core MSCI Total International Stock ETF has outperformed the SPDR fund over the trailing year but shows a slightly deeper historical max drawdown
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Choosing between iShares Core MSCI Total International Stock ETF (NASDAQ:IXUS) and State Street SPDR MSCI ACWI Climate Paris Aligned ETF (NASDAQ:NZAC) involves weighing broad international exposure against a climate-conscious, tech-heavy global strategy.
While both funds offer international equity exposure, they serve different roles in a diversified portfolio. The iShares ETF targets non-U.S. stocks across both developed and emerging markets, providing massive geographical diversification. In contrast, the State Street fund is a global vehicle that includes U.S. positions but filters them through an environmental screen to align with the Paris Agreement.
Snapshot (cost & size)
| Metric | NZAC | IXUS |
|---|---|---|
| Issuer | SPDR | iShares |
| Expense ratio | 0.12% | 0.07% |
| 1-yr return (as of May 1, 2026) | 25.22% | 31.70% |
| Dividend yield | 1.82% | 2.94% |
| AUM | $187.6 million | $56.1 billion |
The iShares fund is more affordable for long-term holders with an expense ratio of 0.07%, compared to 0.12% for the SPDR fund. For income-seeking investors, IXUS also offers a significantly higher payout, with a trailing-12-month distribution yield that exceeds NZAC’s by 1.12 percentage points.
Performance & risk comparison
| Metric | NZAC | IXUS |
|---|---|---|
| Max drawdown (5 yr) | (28.30%) | (30.10%) |
| Growth of $1,000 over 5 years (total return) | $1,580 | $1,501 |
What's inside
The iShares Core MSCI Total International Stock ETF provides a massive portfolio of approximately 4,160 holdings, primarily focused on Financial Services (23.00%), Industrials (16.00%), and Technology (16.00%). Its largest positions include Asml Holding Nv (NASDAQ:ASML) at 1.32%, Tencent Holdings Ltd (OTC:TCEHY) at 0.90%, and Hsbc Holdings Plc (NYSE:HSBC) at 0.75%. Launched in 2012, it has a trailing-12-month dividend of $2.74 per share and lacks specific environmental constraints, offering broader market representation than climate-focused funds.
The State Street SPDR MSCI ACWI Climate Paris Aligned ETF (NASDAQ:NZAC) is more concentrated, holding about 672 stocks with a heavy tilt toward Technology (30.00%), Cash (17.00%), and Financial Services (13.00%). Top holdings include Nvidia Corp (NASDAQ:NVDA) at 5.87%, Apple Inc (NASDAQ:AAPL) at 4.49%, and Microsoft Corp (NASDAQ:MSFT) at 3.30%. Launched in 2014, the fund tracks an index designed to reduce climate risk and has a trailing-12-month dividend of $0.82 per share. This strategy ensures the portfolio aligns with net-zero transition goals while maintaining global exposure.
For more guidance on ETF investing, check out the full guide at this link.
What it means for investors
Alignment with climate goals is not the only reason investors might prefer the State Street SPDR MSCI ACWI Climate Paris Aligned ETF. With all seven members of the Magnificent Seven in its top 10 holdings, an investment in the State Street SPDR MSCI ACWI Climate Paris Aligned ETF is strongly weighted toward the U.S. technology sector.
For most individual investors, exposure to Magnificent Seven stocks is automatic through the funds their employer’s tax-advantaged retirement plan invests in. The iShares Core MSCI Total International Stock ETF is an easy way for many U.S. investors to gain global diversification.
Despite its environmental limitations, the State Street SPDR MSCI ACWI Climate Paris Aligned ETF has outperformed the iShares Core MSCI Total International Stock ETF over long periods. Over the past decade, the NZAC ETF has returned 208.4% if you include dividend payments. The IXUS ETF produced a total return of just 143.4% over the same time frame.
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HSBC Holdings is an advertising partner of Motley Fool Money. Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Apple, Microsoft, Nvidia, and Tencent. The Motley Fool recommends HSBC Holdings. The Motley Fool has a disclosure policy.
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