SPDR® MSCI ACWI Climate Paris Aligned ETF (NZAC)

Overview

The SPDRu00ae MSCI ACWI Climate Paris Aligned ETF (NZAC) aims to provide investment results that, before fees and expenses, correspond generally to the performance of the MSCI ACWI Climate Paris Aligned Index. The fund seeks to reduce exposure to carbon emissions and increase exposure to companies that are aligned with the goals of the Paris Agreement.

Reputation and Reliability

State Street is a well-established and reputable asset manager with a long track record of managing ETFs.

Management Expertise

State Street has a large team of experienced professionals managing various ETFs, with expertise in index tracking and climate-focused investing.

Goal

To track the performance, before fees and expenses, of the MSCI ACWI Climate Paris Aligned Index.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, attempting to replicate the composition and performance of the MSCI ACWI Climate Paris Aligned Index.

Composition The ETF primarily holds stocks from developed and emerging markets, selected and weighted based on climate-related criteria.

Market Share: Data not readily available.

Total Net Assets (AUM): 27765852

Key Competitors

• iShares Paris-Aligned Climate MSCI World ETF (PABU)
• Xtrackers Net Zero Pathway Paris Aligned Plan - Developed Markets Equity ETF (EANZ)
• Global X Net Zero Pathway ETF (NZRO)

Competitive Landscape

The competitive landscape consists of several ETFs focused on climate-aligned investments. NZAC competes with other funds tracking similar indices and offering exposure to companies with strong environmental performance. A potential advantage of NZAC may be its expense ratio or specific index construction methodology compared to competitors. A disadvantage may be lower AUM or trading volume.

Historical Performance: Historical performance data requires specific date ranges and is best sourced from financial data providers. The data will be in a numerical array format.

Benchmark Comparison: Benchmark comparison requires specific data pulls and would be a numerical array of values for the ETF versus its benchmark.

Expense Ratio: 0.09

Average Trading Volume

The average trading volume provides insight into how easily shares can be bought or sold, with higher volume indicating greater liquidity.

Bid-Ask Spread

The bid-ask spread is the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept, reflecting the cost of trading.

Market Environment Factors

Economic indicators such as interest rates and inflation, sector growth prospects in renewable energy and sustainable technologies, and overall market sentiment towards ESG investing influence NZAC.

Growth Trajectory

Growth trends include increasing investor interest in ESG and climate-conscious investing, potentially driving increased AUM. Changes to strategy could involve adjustments to the index methodology or holdings based on updated climate data.

Competitive Edge

NZAC's competitive edge lies in its focus on aligning investments with the Paris Agreement goals, offering investors a way to support climate action. The fund benefits from State Street's established reputation and expertise in managing ETFs. Furthermore, the ETF may have a niche market focus within the broader ESG investing space, attracting investors specifically seeking climate-aligned exposure. The specific index construction methodology may be advantageous depending on investor preference.

Volatility

Historical volatility can be assessed using standard deviation of returns over different time periods. Higher standard deviation implies higher volatility.

Market Risk

Market risk includes the potential for declines in the overall stock market to negatively impact the ETF. Specific risks associated with the underlying assets include regulatory changes impacting climate policies and company-specific risks within the portfolio.

Ideal Investor Profile

The ideal investor is someone seeking to align their investments with climate goals and the Paris Agreement, or investors looking for diversified global equity exposure with a focus on environmental sustainability.

Market Risk

NZAC is suitable for long-term investors who believe in the importance of climate action and are seeking to integrate ESG considerations into their portfolio. It is likely less suitable for active traders seeking short-term gains.

The SPDRu00ae MSCI ACWI Climate Paris Aligned ETF (NZAC) offers investors exposure to global equities while aligning with the goals of the Paris Agreement. It aims to track the MSCI ACWI Climate Paris Aligned Index, reducing exposure to carbon emissions and increasing exposure to climate-aligned companies. State Street, a reputable asset manager, manages the ETF. It is best suited for long-term investors who are concerned about climate change and seek to integrate ESG factors into their portfolios.

Data Sources:

• State Street Global Advisors Website
• MSCI Index Fact Sheet
• ETF.com
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market share data may not be readily available and is subject to change. Performance data should be verified with reliable financial sources.