(NZAC) SPDR MSCI ACWI Climate - Ratings and Ratios

The SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) is an investment vehicle that tracks an index designed to meet the EUs Paris-Aligned Benchmark standards, aiming to limit global warming to below 2 degrees Celsius. This ETF invests at least 80% of its assets in the securities comprising the index, providing a diversified portfolio aligned with climate goals.

From a portfolio perspective, NZAC can be evaluated using key performance indicators (KPIs) such as tracking error, information ratio, and carbon footprint. A low tracking error would indicate that the ETF closely follows the index, while a high information ratio would suggest that the ETF provides a strong risk-adjusted return relative to its benchmark. Additionally, the carbon footprint of the ETF can be assessed by analyzing the weighted average carbon intensity (WACI) of its holdings, providing insight into its climate alignment.

In terms of investment strategy, NZACs focus on climate alignment may lead to a tilt towards companies with lower carbon emissions, potentially resulting in a more sustainable long-term investment approach. Investors can further analyze the ETFs sector allocation, geographic distribution, and holdings to understand its overall risk profile and potential for long-term growth.

To assess NZACs performance, investors can examine metrics such as returns, volatility, and Sharpe ratio. Comparing these metrics to those of its peers and benchmark can provide insight into the ETFs relative performance and help investors make informed decisions. Furthermore, analyzing the ETFs expense ratio and trading costs can help investors understand the total cost of ownership and potential impact on returns.