NZAC vs. ESGE
Compare and contrast key facts about SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) and iShares ESG Aware MSCI EM ETF (ESGE).
NZAC and ESGE are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. NZAC is a passively managed fund by State Street that tracks the performance of the MSCI ACWI Climate Paris Aligned Index. It was launched on Nov 25, 2014. ESGE is a passively managed fund by iShares that tracks the performance of the MSCI EM Extended ESG Focus Index. It was launched on Jun 28, 2016. Both NZAC and ESGE are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: NZAC or ESGE.
Key characteristics
| NZAC | ESGE | |
|---|---|---|
| YTD Return | 8.64% | 6.55% |
| 1Y Return | 22.94% | 12.78% |
| 3Y Return (Ann) | 5.21% | -5.04% |
| 5Y Return (Ann) | 11.09% | 3.66% |
| Sharpe Ratio | 1.81 | 0.80 |
| Daily Std Dev | 12.35% | 15.10% |
| Max Drawdown | -33.72% | -41.07% |
| Current Drawdown | 0.00% | -21.77% |
Correlation
The correlation between NZAC and ESGE is 0.73, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
NZAC vs. ESGE - Performance Comparison
In the year-to-date period, NZAC achieves a 8.64% return, which is significantly higher than ESGE's 6.55% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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NZAC vs. ESGE - Expense Ratio Comparison
NZAC has a 0.12% expense ratio, which is lower than ESGE's 0.25% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
NZAC vs. ESGE - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) and iShares ESG Aware MSCI EM ETF (ESGE). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
NZAC vs. ESGE - Dividend Comparison
NZAC's dividend yield for the trailing twelve months is around 1.52%, less than ESGE's 2.48% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
NZAC SPDR MSCI ACWI Climate Paris Aligned ETF | 1.52% | 1.65% | 1.81% | 1.62% | 1.59% | 2.17% | 2.53% | 2.20% | 2.00% | 2.40% | 0.18% |
ESGE iShares ESG Aware MSCI EM ETF | 2.48% | 2.64% | 2.68% | 2.66% | 1.31% | 2.59% | 2.19% | 1.86% | 0.27% | 0.00% | 0.00% |
Drawdowns
NZAC vs. ESGE - Drawdown Comparison
The maximum NZAC drawdown since its inception was -33.72%, smaller than the maximum ESGE drawdown of -41.07%. Use the drawdown chart below to compare losses from any high point for NZAC and ESGE. For additional features, visit the drawdowns tool.
Volatility
NZAC vs. ESGE - Volatility Comparison
The current volatility for SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) is 3.52%, while iShares ESG Aware MSCI EM ETF (ESGE) has a volatility of 3.73%. This indicates that NZAC experiences smaller price fluctuations and is considered to be less risky than ESGE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.