Analysis suggests iShares MSCI World ETF (URTH) has outperformed State Street SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) over five years, despite NZAC's lower expense ratio and higher d

A recent analysis compares two global ETFs, NZAC and URTH. NZAC, which applies a strict climate screen and includes emerging markets, has a 0.12% expense ratio and a 2.06% dividend yield. URTH, focusing on developed-world giants without a climate filter, has a 0.24% expense ratio and a 1.40% dividend yield. While NZAC offers lower costs and higher income, the analysis indicates that URTH has delivered stronger one-year and five-year performance, alongside a smaller maximum drawdown, suggesting that a focus on established developed-market blue chips without an ESG filter has been the better strategy for returns.