IXUS vs. NZAC: Broad International Exposure or Climate-Focused Investing – Which ETF Is the Better Buy?

This article compares the iShares Core MSCI Total International Stock ETF (IXUS) and the State Street SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC). IXUS offers ultra-low-cost, broad diversification across developed and emerging markets outside the U.S., with a 0.07% expense ratio and a higher dividend yield. NZAC includes U.S. equities and applies a climate-aligned ESG screen, resulting in a heavier technology weighting (36.6%) and lower yield. Over the past five years, NZAC has outperformed IXUS, largely due to its exposure to U.S. mega-cap tech stocks like Nvidia, Apple, and Microsoft. The article advises that IXUS is better for income-focused investors seeking low-cost international diversification, while NZAC suits those comfortable with tech concentration and climate-conscious investing. The right choice depends on an investor's portfolio goals and risk tolerance.