NZAC vs VYM
State Street SPDR MSCI ACWI Climate Paris Aligned ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. NZAC offers more diversification with 715 holdings.
Side-by-Side Comparison
| Metric | NZAC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.04% | |
| AUM | $199M | $81.6B | |
| Dividend Yield | 2.07% | 2.24% | |
| Holdings | 715 | 616 | |
| YTD Return | +9.72% | +14.66% | |
| 1Y Return | +18.02% | +22.16% | |
| 3Y Return (annualized) | +19.26% | +18.72% | |
| 5Y Return (annualized) | +9.84% | +12.18% | |
| Volatility (annualized) | 14.8% | 14.6% | |
| Max Drawdown | -33.7% | -58.8% | |
| Fund Family | SPDR State Street Global Advisors | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 25, 2014 | Nov 10, 2006 |
NZAC vs VYM Performance
State Street SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) is a ETF from SPDR State Street Global Advisors and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NZAC returned +18.02% while VYM returned +22.16%. Year to date, NZAC is up 9.72% versus a gain of 14.66% for VYM.
Over three years, NZAC compounded at +19.26% per year against +18.72% for VYM; over five years the annualized figures are +9.84% and +12.18% respectively. Across the full 12-year window we track, NZAC has the edge at +8.98% annualized vs +7.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NZAC has been the more volatile fund, with annualized monthly volatility of 14.8% compared with 14.6% for VYM. 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 -58.8% for VYM. 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
NZAC charges 0.12% per year while VYM charges 0.04%. On a $10,000 position that is $12 vs $4 annually, a gap of $8 per year that compounds over a long holding period. On income, NZAC currently yields 2.07% against 2.24% for VYM.
Holdings Overlap
NZAC and VYM share 88 holdings out of 1140 unique holdings combined, representing a 16.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, NZAC or VYM?
NZAC has an expense ratio of 0.12% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, NZAC or VYM?
Over the past year NZAC returned +18.02% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), NZAC annualized +8.98% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, NZAC or VYM?
NZAC has been the more volatile fund at 14.8% annualized versus 14.6% for VYM. Worst drawdown: NZAC -33.7% vs VYM -58.8%.
Should I hold both NZAC and VYM?
NZAC and VYM have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NZAC and VYM?
NZAC and VYM share 88 common holdings with a 16.6% weight overlap. Combined, they hold 1140 unique securities.
Which pays a higher dividend, NZAC or VYM?
NZAC yields 2.07% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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