NZAC vs SPY
State Street SPDR MSCI ACWI Climate Paris Aligned ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. NZAC offers more diversification with 715 holdings.
Side-by-Side Comparison
| Metric | NZAC | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.09% | |
| AUM | $199M | $821.1B | |
| Dividend Yield | 2.07% | 1.01% | |
| Holdings | 715 | 505 | |
| YTD Return | +10.33% | +12.68% | |
| 1Y Return | +19.04% | +21.82% | |
| 3Y Return (annualized) | +19.56% | +21.98% | |
| 5Y Return (annualized) | +9.75% | +12.89% | |
| Volatility (annualized) | 14.8% | 15.3% | |
| Max Drawdown | -33.7% | -56.5% | |
| Fund Family | SPDR State Street Global Advisors | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 25, 2014 | Jan 22, 1993 |
NZAC vs SPY Performance
State Street SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) is a ETF from SPDR State Street Global Advisors and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year NZAC returned +19.04% while SPY returned +21.82%. Year to date, NZAC is up 10.33% versus a gain of 12.68% for SPY.
Over three years, NZAC compounded at +19.56% per year against +21.98% for SPY; over five years the annualized figures are +9.75% and +12.89% respectively. Across the full 12-year window we track, NZAC has the edge at +9.03% annualized vs +8.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.8% for NZAC. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -33.7% for NZAC and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
NZAC charges 0.12% per year while SPY charges 0.09%. On a $10,000 position that is $12 vs $9 annually, a gap of $3 per year that compounds over a long holding period. On income, NZAC currently yields 2.07% against 1.01% for SPY.
Holdings Overlap
NZAC and SPY share 221 holdings out of 908 unique holdings combined, representing a 52.6% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, NZAC or SPY?
NZAC has an expense ratio of 0.12% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, NZAC or SPY?
Over the past year NZAC returned +19.04% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (12 years), NZAC annualized +9.03% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, NZAC or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.8% for NZAC. Worst drawdown: NZAC -33.7% vs SPY -56.5%.
Should I hold both NZAC and SPY?
NZAC and SPY have a monthly-return correlation of 0.97, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between NZAC and SPY?
NZAC and SPY share 221 common holdings with a 52.6% weight overlap. Combined, they hold 908 unique securities.
Which pays a higher dividend, NZAC or SPY?
NZAC yields 2.07% while SPY yields 1.01%, so NZAC currently pays the higher dividend yield.
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