Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTAndy Gould, The Motley FoolSat, June 27, 2026 at 1:17 PM GMT+2 4 min readThe Vanguard Total World Stock ETF (NYSEMKT:VT) provides broad global exposure at a lower cost, while the State Street SPDR MSCI ACWI Climate Paris Aligned ETF (NASDAQ:NZAC) prioritizes climate-related risk mitigation through specific environmental screens.Both funds offer a gateway to international equity markets, but they serve different investor priorities. While VT aims to capture the entire investable global market, NZAC filters that stock universe through the lens of the Paris Agreement.Snapshot (cost & size)MetricNZACVTIssuerState StreetVanguardExpense ratio0.12%0.06%1-year return (as of June 25, 2026)18.72%24.78%Dividend yield1.75%1.59%Beta1.040.98AUM$196.3 million$95.3 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.VT is less expensive, with an expense ratio of 0.06% -- half of NZAC's 0.12% annual fee. However, NZAC offers a higher dividend yield of 1.75% compared to VT'S 1.59%.Performance & risk comparisonMetricNZACVTMax drawdown (5 year)(27.65%)(26.39%)Growth of $1,000 over 5 years (total return)$1,560$1,637What's insideLaunched in 2008, VT diversifies across 10,024 stock holdings, tracking the performance of companies in both developed and emerging markets. Its top sector allocations include technology at 31.1%, financial services at 15.2%, and industrials at 11.4%. Its largest positions include Nvidia (NASDAQ:NVDA) at 4.2%, Apple (NASDAQ:AAPL) at 3.8%, and Microsoft (NASDAQ:MSFT) at 2.8%.Launched in 2014, NZAC is more concentrated with 629 holdings -- using an ESG screen to satisfy the requirements of the EU Paris Aligned Benchmark. Its sector exposure is also led by technology at 36.6%, followed by financial services at 15.4% and industrials at 9.7%. Its top holdings include the same three largest positions, with Nvidia at 5.9%, Apple at 4.9%, and Microsoft at 3.5%.For more guidance on ETF investing, check out the full guide at this link.What this means for investorsChoosing between VT and NZAC ultimately comes down to what you want your portfolio to do. VT is one of the most diversified single-fund options available anywhere. With exposure to more than 10,000 companies across developed and emerging markets, it's essentially a bet on global economic growth as a whole. That breadth, combined with a rock-bottom 0.06% expense ratio, makes it a compelling core holding for long-term investors who want simplicity and cost efficiency.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info