NZAC vs. XLK

Last updated Jun 3, 2026

NZAC (SPDR MSCI ACWI Climate Paris Aligned ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - NZAC is a Global Equities fund tracking the MSCI ACWI Climate Paris Aligned Index, while XLK is a Technology Equities fund tracking the S&P Technology Select Sector Daily Capped 35/20 Index. Both are passively managed. Over the past 10 years, NZAC returned 12.25%/yr vs 25.97%/yr for XLK. A 0.77 correlation means they provide meaningful diversification when combined. NZAC charges 0.12%/yr vs 0.08%/yr for XLK.

Performance

NZAC vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) and State Street Technology Select Sector SPDR ETF (XLK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NZAC achieves a 9.73% return, which is significantly lower than XLK's 37.85% return. Over the past 10 years, NZAC has underperformed XLK with an annualized return of 12.25%, while XLK has yielded a comparatively higher 25.97% annualized return.

NZAC

• 1D: 0.56%
• 1M: 4.72%
• YTD: 9.73%
• 6M: 10.87%
• 1Y: 26.10%
• 3Y*: 19.38%
• 5Y*: 10.26%
• 10Y*: 12.25%

XLK

• 1D: 1.25%
• 1M: 22.45%
• YTD: 37.85%
• 6M: 37.41%
• 1Y: 71.15%
• 3Y*: 34.35%
• 5Y*: 24.55%
• 10Y*: 25.97%

*Multi-year figures are annualized to reflect compound growth (CAGR)

NZAC vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NZAC SPDR MSCI ACWI Climate Paris Aligned ETF	9.73%	20.55%	16.67%	23.22%	-19.77%	18.35%	17.21%	28.24%	-9.80%	22.93%
XLK State Street Technology Select Sector SPDR ETF	37.85%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%

Correlation

The correlation between NZAC and XLK is 0.83, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.84
Correlation (10Y) Calculated over the trailing 10-year period	0.80
Correlation (All Time) Calculated using the full available price history since Nov 28, 2014	0.77

The correlation between NZAC and XLK has been stable across timeframes, ranging from 0.77 to 0.84 - a consistent structural relationship.

NZAC vs. XLK - Sectors Allocation Comparison

Sectors	NZAC	XLK
Technology	34.3%	99.7%
Financial Services	13.1%	-
Communication Services	8.5%	-
Consumer Cyclical	8.2%	-
Healthcare	7.8%	-
Industrials	7.3%	0.1%
Real Estate	5.2%	-
Basic Materials	1.9%	-
Utilities	1.4%	-
Energy	1.2%	0.2%
Consumer Defensive	1.0%	-

Return for Risk

NZAC vs. XLK — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

NZAC

NZAC Risk / Return Rank: 58
NZAC Sharpe Ratio Rank: 59
NZAC Sortino Ratio Rank: 60
NZAC Omega Ratio Rank: 58
NZAC Calmar Ratio Rank: 52
NZAC Martin Ratio Rank: 62

XLK

XLK Risk / Return Rank: 86
XLK Sharpe Ratio Rank: 93
XLK Sortino Ratio Rank: 89
XLK Omega Ratio Rank: 87
XLK Calmar Ratio Rank: 84
XLK Martin Ratio Rank: 78

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

NZAC vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) and State Street Technology Select Sector SPDR ETF (XLK). 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.

	NZAC	XLK	Difference
Sharpe ratio Return per unit of total volatility	2.03	3.44	-1.41
Sortino ratio Return per unit of downside risk	2.85	4.12	-1.27
Omega ratio Gain probability vs. loss probability	1.36	1.55	-0.19
Calmar ratio Return relative to maximum drawdown	2.61	4.56	-1.95
Martin ratio Return relative to average drawdown	11.35	15.32	-3.97
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NZAC vs. XLK - Sharpe Ratio Comparison

The current NZAC Sharpe Ratio is 2.03, which is lower than the XLK Sharpe Ratio of 3.44. The chart below compares the historical Sharpe Ratios of NZAC and XLK, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	NZAC	XLK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.03	3.44	-1.41
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.61	0.99	-0.38
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.72	1.06	-0.35
Sharpe Ratio (All Time) Calculated using the full available price history	0.62	0.42	+0.20

Drawdowns

NZAC vs. XLK - Drawdown Comparison

The maximum NZAC drawdown since its inception was -33.72%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for NZAC and XLK.

Drawdown Indicators

	NZAC	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-33.72%	-82.05%	+48.33%
Max Drawdown (1Y) Largest decline over 1 year	-10.10%	-15.92%	+5.82%
Max Drawdown (3Y) Largest decline over 3 years	-16.19%	-25.66%	+9.47%
Max Drawdown (5Y) Largest decline over 5 years	-28.31%	-33.56%	+5.25%
Max Drawdown (10Y) Largest decline over 10 years	-33.72%	-33.56%	-0.16%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-5.32%	-34.96%	+29.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.32%	4.74%	-2.42%

Volatility

NZAC vs. XLK - Volatility Comparison

The current volatility for SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) is 3.66%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 6.74%. This indicates that NZAC experiences smaller price fluctuations and is considered to be less risky than XLK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NZAC	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.66%	6.74%	-3.08%
Volatility (6M) Calculated over the trailing 6-month period	10.33%	16.64%	-6.31%
Volatility (1Y) Calculated over the trailing 1-year period	12.91%	20.80%	-7.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.81%	24.90%	-8.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.14%	24.49%	-7.35%

NZAC vs. XLK - Expense Ratio Comparison

NZAC has a 0.12% expense ratio, which is higher than XLK's 0.08% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

NZAC vs. XLK - Dividend Comparison

NZAC's dividend yield for the trailing twelve months is around 2.02%, more than XLK's 0.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NZAC SPDR MSCI ACWI Climate Paris Aligned ETF	2.02%	1.90%	1.88%	1.65%	1.81%	1.62%	1.59%	2.17%	2.53%	2.20%	2.00%	2.40%
XLK State Street Technology Select Sector SPDR ETF	0.39%	0.54%	0.66%	0.76%	1.04%	0.65%	0.92%	1.16%	1.60%	1.37%	1.74%	1.79%

Frequently Asked Questions

Can I hold both NZAC and XLK in my portfolio?

NZAC and XLK have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NZAC or XLK?

XLK has higher volatility (6.74%) compared to NZAC (3.66%). In terms of maximum drawdown, NZAC dropped -33.72% vs XLK's -82.05%.

Which ETF is better, NZAC or XLK?

On 10-year performance, XLK leads with 25.97% vs 12.25% for NZAC. On fees, XLK is cheaper at 0.08% per year. On volatility, NZAC has been the lower-risk option at 3.66%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, NZAC or XLK?

Over the 10-year period, XLK has performed better with a 25.97% return vs 12.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, NZAC or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 0.12% for NZAC.

Which ETF pays a higher dividend yield, NZAC or XLK?

NZAC has the higher dividend yield at 2.02%, compared with 0.39% for XLK.

What is the main difference between NZAC and XLK?

NZAC is categorized as Global Equities, while XLK is Technology Equities. NZAC tracks MSCI ACWI Climate Paris Aligned Index, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. Their fees differ too: 0.12% for NZAC and 0.08% for XLK.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (3.44 vs 2.03), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.