XESG.TO vs. NZAC

Last updated Jun 14, 2026

XESG.TO (iShares ESG Aware MSCI Canada Index ETF) and NZAC (SPDR MSCI ACWI Climate Paris Aligned ETF) are both exchange-traded funds - XESG.TO is a Canada Equities fund tracking the Morningstar Canada GR CAD, while NZAC is a Global Equities fund tracking the MSCI ACWI Climate Paris Aligned Index. Both are passively managed. Over the past 5 years, XESG.TO returned 12.49%/yr vs 12.60%/yr for NZAC. A 0.55 correlation means they provide meaningful diversification when combined. XESG.TO charges 0.16%/yr vs 0.12%/yr for NZAC.

Performance

XESG.TO vs. NZAC - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in iShares ESG Aware MSCI Canada Index ETF (XESG.TO) and SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

XESG.TO is traded in CAD, while NZAC is traded in USD. To make them comparable, the NZAC values have been converted to CAD using the latest available exchange rates.

Returns By Period

In the year-to-date period, XESG.TO achieves a 10.50% return, which is significantly higher than NZAC's 8.93% return.

XESG.TO

• 1D: 0.81%
• 1M: 1.78%
• YTD: 10.50%
• 6M: 7.97%
• 1Y: 29.17%
• 3Y*: 21.05%
• 5Y*: 12.49%
• 10Y*: —

NZAC

• 1D: 0.46%
• 1M: 1.30%
• YTD: 8.93%
• 6M: 9.24%
• 1Y: 25.40%
• 3Y*: 19.30%
• 5Y*: 12.60%
• 10Y*: 13.24%

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

XESG.TO vs. NZAC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
XESG.TO iShares ESG Aware MSCI Canada Index ETF	10.50%	26.34%	20.23%	10.30%	-7.64%	23.09%	1.14%	12.07%
NZAC SPDR MSCI ACWI Climate Paris Aligned ETF	8.93%	15.05%	26.55%	20.29%	-14.68%	18.29%	14.43%	10.24%

Correlation

The correlation between XESG.TO and NZAC is 0.63, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.63
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (All Time) Calculated using the full available price history since Mar 22, 2019	0.55

The correlation between XESG.TO and NZAC has been stable across timeframes, ranging from 0.55 to 0.64 - a consistent structural relationship.

Return for Risk

XESG.TO vs. NZAC — Risk / Return Rank

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

XESG.TO

XESG.TO Risk / Return Rank: 75
XESG.TO Sharpe Ratio Rank: 77
XESG.TO Sortino Ratio Rank: 69
XESG.TO Omega Ratio Rank: 76
XESG.TO Calmar Ratio Rank: 71
XESG.TO Martin Ratio Rank: 80

NZAC

NZAC Risk / Return Rank: 50
NZAC Sharpe Ratio Rank: 50
NZAC Sortino Ratio Rank: 49
NZAC Omega Ratio Rank: 48
NZAC Calmar Ratio Rank: 46
NZAC Martin Ratio Rank: 56

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.

XESG.TO vs. NZAC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG Aware MSCI Canada Index ETF (XESG.TO) and SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	XESG.TO	NZAC	Difference
Sharpe ratio: Return per unit of total volatility	2.14	1.67	+0.47
Sortino ratio: Return per unit of downside risk	2.73	2.35	+0.38
Omega ratio: Gain probability vs. loss probability	1.39	1.29	+0.10
Calmar ratio: Return relative to maximum drawdown	3.12	2.30	+0.83
Martin ratio: Return relative to average drawdown	13.67	8.41	+5.26

XESG.TO vs. NZAC - Sharpe Ratio Comparison

The current XESG.TO Sharpe Ratio is 2.14, which is comparable to the NZAC Sharpe Ratio of 1.67. The chart below compares the historical Sharpe Ratios of XESG.TO and NZAC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

XESG.TO vs. NZAC - Drawdown Comparison

The maximum XESG.TO drawdown since its inception was -39.40%, which is greater than NZAC's maximum drawdown of -27.89%. Use the drawdown chart below to compare losses from any high point for XESG.TO and NZAC.

Drawdown Indicators

	XESG.TO	NZAC	Difference
Max Drawdown Largest peak-to-trough decline	-39.40%	-27.89%	-11.51%
Max Drawdown (1Y) Largest decline over 1 year	-9.28%	-10.14%	+0.86%
Max Drawdown (3Y) Largest decline over 3 years	-14.14%	-16.47%	+2.33%
Max Drawdown (5Y) Largest decline over 5 years	-17.82%	-23.56%	+5.74%
Max Drawdown (10Y) Largest decline over 10 years	—	-27.89%	—
Current Drawdown Current decline from peak	-1.00%	-1.76%	+0.76%
Average Drawdown Average peak-to-trough decline	-5.08%	-4.12%	-0.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.12%	2.77%	-0.65%

Volatility

XESG.TO vs. NZAC - Volatility Comparison

The current volatility for iShares ESG Aware MSCI Canada Index ETF (XESG.TO) is 4.58%, while SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) has a volatility of 5.20%. This indicates that XESG.TO experiences smaller price fluctuations and is considered to be less risky than NZAC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XESG.TO	NZAC	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.58%	5.20%	-0.62%
Volatility (6M) Calculated over the trailing 6-month period	11.34%	11.43%	-0.09%
Volatility (1Y) Calculated over the trailing 1-year period	13.55%	13.96%	-0.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.90%	17.90%	-4.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.98%	18.16%	+3.82%

XESG.TO vs. NZAC - Expense Ratio Comparison

XESG.TO has a 0.16% expense ratio, which is higher than NZAC's 0.12% 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

XESG.TO vs. NZAC - Dividend Comparison

XESG.TO's dividend yield for the trailing twelve months is around 1.99%, less than NZAC's 2.08% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NZAC SPDR MSCI ACWI Climate Paris Aligned ETF	2.08%	1.90%	1.88%	1.65%	1.81%	1.62%	1.59%	2.17%	2.53%	2.20%	2.00%	2.40%
XESG.TO iShares ESG Aware MSCI Canada Index ETF	1.99%	2.17%	2.57%	2.89%	2.77%	2.01%	2.30%	1.08%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XESG.TO and NZAC in my portfolio?

XESG.TO and NZAC have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XESG.TO or NZAC?

On fees, NZAC is cheaper at 0.12% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XESG.TO or NZAC?

NZAC is cheaper with a 0.12% expense ratio, compared with 0.16% for XESG.TO.

What is the main difference between XESG.TO and NZAC?

XESG.TO is categorized as Canada Equities, while NZAC is Global Equities. XESG.TO tracks Morningstar Canada GR CAD, while NZAC tracks MSCI ACWI Climate Paris Aligned Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.16% for XESG.TO and 0.12% for NZAC.