How Does This ESG Fund Compare to the Vanguard Total World Stock ETF?
Key Points
Vanguard Total World Stock ETF offers a lower expense ratio and higher 1-year total return than State Street SPDR MSCI ACWI Climate Paris Aligned ETF.
State Street SPDR MSCI ACWI Climate Paris Aligned ETF manages climate risk through a concentrated portfolio of 609 holdings and an ESG screen.
Vanguard Total World Stock ETF provides massive diversification with more than 10,000 global holdings and over $100 billion in assets under management (AUM).
- 10 stocks we like better than Vanguard International Equity Index Funds - Vanguard Total World Stock ETF ›
The Vanguard Total World Stock ETF (NYSEMKT:VT) provides broad global exposure at a lower cost, while the State Street SPDR MSCI ACWI Climate Paris Aligned ETF (NASDAQ:NZAC) applies specific environmental screens.
Global equity ETFs allow investors to capture the growth of companies across developed and emerging markets in a single trade. While both funds look to the global stage, they differ in their selection criteria and the sheer volume of companies they include in their respective portfolios.
Snapshot (cost & size)
| Metric | NZAC | VT |
|---|---|---|
| Issuer | SPDR | Vanguard |
| Share price (as of 9/10/26) | $46.25 | $158.53 |
| Expense ratio | 0.12% | 0.06% |
| 1-yr return (as of 9/1026) | 14.0% | 19.0% |
| Dividend yield | 2.0% | 1.6% |
| Beta | 1.05 | 0.98 |
| AUM | $193.6 million | $101.7 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Vanguard fund is the more affordable option with a 0.06% expense ratio, half the cost of the SPDR fund. For income-seeking investors, the SPDR fund offers a higher trailing yield of 2% compared to 1.6% for the Vanguard fund.
Performance & risk comparison
| Metric | NZAC | VT |
|---|---|---|
| Max drawdown (5 yr) | (27.7%) | (26.4%) |
| Growth of $1,000 over 5 years (total return) | $1,566 | $1,654 |
What's inside
The Vanguard Total World Stock ETF tracks a massive basket of 10,088 holdings, providing deep exposure to theglobal market Sector weights include technology at 29%, financial services at 17%, and industrials at 11%. Its largest positions include Nvidia Corp at 4.3%, Apple at 3.84%, and Microsoft at 3.14%. The fund was launched in 2008. Vanguard Total World Stock ETF has paid $2.48 per share over the trailing 12 months, which on its recent ~$158.53 share price works out to a 1.6% yield.
The State Street SPDR MSCI ACWI Climate Paris Aligned ETF employs an ESG screen to target climate-aligned outcomes with 609 holdings. Sector allocation tilts toward technology at 35%, financial services at 17.5%, and Cash & Others at 10%. Top holdings include Nvidia Corp at 6.09%, Apple Inc at 5.35%, and Microsoft Corp at 3.93%. The fund was launched in 2014. State Street SPDR MSCI ACWI Climate Paris Aligned ETF has paid $0.94 per share over the trailing 12 months, which on its recent ~$46.25 share price works out to a 2% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
It's tough to go up against the Vanguard Total World Stock ETF. This massive fund holds over 10,000 stocks and more than $100 billion in assets, making it highly liquid and relatively stable. Its expense ratio is half that of the State Street ETF, and it edges ahead in terms of both one- and five-year returns. Indeed, many market watchers would consider VT a foundational holding for a diversified stock portfolio, as it gives you broad access to companies and markets around the world.
On the other hand, a bet on the State Street Climate Paris Aligned ETF is an investment in your conviction. Per the State Street website, the fund "Seeks to track an index designed to reduce exposure to the physical and transition risks of climate change." ESG investing, like with this ETF, is a way to align your portfolio with your vision of the future -- and it may turn out to be good for business as well. Indeed, this fund beats VT on dividend yield with close to the same amount of volatility.
Note that the top three holdings of both funds are roughly the same, and make up more than 10% of each funds' total holdings. Your choice will likely come down to the role you want these funds to play in your overall portfolio. In fact, holding both funds could be a way to build a portfolio that is diverse, stable, and reflects your convictions.
Should you buy stock in Vanguard International Equity Index Funds - Vanguard Total World Stock ETF right now?
Before you buy stock in Vanguard International Equity Index Funds - Vanguard Total World Stock ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard International Equity Index Funds - Vanguard Total World Stock ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $420,109!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,303,689!*
Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 17, 2026.
Sarah Sidlow has positions in Apple, Microsoft, Nvidia, and Vanguard International Equity Index Funds - Vanguard Total World Stock ETF. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
