NZAC vs PBUS

NZACBState Street SPDR MSCI ACWI Climate Paris Aligned ETF

PBUSAInvesco MSCI USA ETF

In short

NZAC A whole-world stock index fund with a climate filter baked in: large and mid caps across developed and emerging markets, screened for climate risk, at 0.12% a year. A Paris-aligned mandate priced like plain vanilla.

PBUS Roughly 500 US stocks for 0.04% a year, benchmarked to the MSCI USA Index instead of the S&P 500. Invesco's rules-based core holding, running since 2017.

Stated mandate

NZAC The fund seeks to track the MSCI ACWI Climate Paris Aligned Index, an equity index covering large- and mid-cap companies in developed and emerging markets. Its methodology is designed to reduce physical and transition climate risks and increase exposure to opportunities from the transition to a lower-carbon economy.

PBUS The Fund tracks the MSCI USA Index and commits at least 90% of its assets to securities included in that index.

Why people hold it

• NZAC Charges 0.12% a year against a 0.45% median for its index-fund cohort. The climate screen arrives without the boutique price tag that usually rides along.
• One ticket, roughly 600 large and mid caps across developed and emerging markets. The screen runs across the whole global opportunity set, not just the US slice.
• The portfolio matches the label. MSCI's methodology targets lower physical and transition climate risk, and this is one of the cleaner implementations among index wrappers.

• PBUS 0.04% a year sits at the floor of its peer group, matching SPYV and a hair above SCHK's 0.03%.invesco.com
• Returns have hugged the MSCI USA Index about as tightly as anything in its cohort, so index-level exposure arrives with very little slippage.
• A multi-billion-dollar fund trading since 2017, with a real market cycle behind it rather than a launch-window track record.
• Roughly 500 names and quarterly distributions: a plain broad-market wrapper with no options overlay, no leverage, no sector tilt bolted on.

Worth knowing

• NZAC Thinly traded next to the giants of its cohort, so the gap between bid and ask can be wider at the moment you trade.
• Unscreened global index funds go cheaper: VT runs 0.06%. The climate methodology is what the fee difference buys.
• An exclusionary approach reshapes sector and country weights, so results can drift from a plain global index in either direction. Cash comes back once or twice a year, not monthly.

• PBUS MSCI USA is not the S&P 500. Holdings and results drift from an S&P-benchmarked portfolio, which matters if that is the yardstick you track against.invesco.com
• The mandate commits at least 90% of assets to index securities, which leaves a slice of room outside the benchmark.
• Moderately traded rather than one of the tape's busiest tickers, so spreads deserve a glance and limit orders earn their keep.

Full NZAC profile⁠

Full PBUS profile⁠