SPDR MSCI USA Climate Paris Aligned ETF (NZUS)

Overview

The SPDR MSCI USA Climate Paris Aligned ETF (NZUS) seeks to track the performance of the MSCI USA Climate Paris Aligned Index, which aims to represent an equity market exposure that exceeds the minimum standards of the Paris Agreement and targets a decarbonization trajectory.

Reputation and Reliability

State Street Global Advisors (SSGA) is a reputable and reliable issuer with a long track record in the ETF market.

Management Expertise

SSGA has extensive experience in managing index-tracking ETFs and a dedicated team of investment professionals.

Goal

The primary investment goal is to track the MSCI USA Climate Paris Aligned Index and provide investment results that correspond generally to the price and yield performance of the index.

Investment Approach and Strategy

Strategy: The ETF aims to track a specific index focused on companies with lower carbon emissions and targets aligned with the Paris Agreement.

Composition The ETF holds stocks of large and mid-cap companies in the United States, selected based on their carbon emissions and climate-related metrics.

Market Share: Data unavailable to accurately determine market share.

Total Net Assets (AUM): 105637754

Key Competitors

• ICLN
• QCLN
• TAN
• SMOG

Competitive Landscape

The competitive landscape includes various clean energy and low-carbon ETFs. NZUS competes by focusing on Paris Agreement alignment, while others like ICLN and QCLN focus on broader clean energy sectors. NZUS offers targeted climate alignment, but may have lower liquidity than broader ETFs.

Historical Performance: Historical performance data for the ETF is not available as it is a newer ETF.

Benchmark Comparison: Comparison against the MSCI USA Climate Paris Aligned Index would be the appropriate benchmark, but data is unavailable.

Expense Ratio: 0.1

Average Trading Volume

The ETF's average trading volume indicates moderate liquidity and ease of trading.

Bid-Ask Spread

The bid-ask spread provides insight into trading costs and can vary depending on market conditions.

Market Environment Factors

Economic indicators supporting sustainable investments, increasing environmental awareness, and government regulations favoring low-carbon initiatives positively affect NZUS.

Growth Trajectory

Growth trends include increasing investor demand for climate-aligned investments, adaptation of the investment strategy to include more climate-focused holdings, and an increase in assets under management.

Competitive Edge

NZUS benefits from SSGA's established reputation. The ETF's unique advantage lies in its Paris Agreement alignment focus, appealing to investors prioritizing stringent climate objectives. This specialized focus differentiates it from broader ESG or clean energy ETFs, attracting investors specifically seeking decarbonization strategies. SSGA's management expertise further bolsters investor confidence.

Volatility

Historical volatility is not readily available as the fund is new. It is expected to track volatility associated with ESG and climate-focused investments.

Market Risk

Specific risks include exposure to market fluctuations affecting ESG-aligned stocks, regulatory changes impacting climate policies, and potential underperformance compared to broader market indices.

Ideal Investor Profile

The ideal investor is one who is focused on the climate change and wants to align their investments with the Paris Agreement, including those with ESG mandates.

Market Risk

SPDR MSCI USA Climate Paris Aligned ETF is suitable for long-term investors who are conscious about their ESG profiles.

SPDR MSCI USA Climate Paris Aligned ETF (NZUS) tracks the MSCI USA Climate Paris Aligned Index, focusing on US companies aligned with the Paris Agreement's climate goals. Issued by State Street, it offers investors a means to decarbonize their portfolios. The ETF has a low expense ratio of 0.1%. It best suits long-term investors focused on sustainable and environmentally conscious investments.

Data Sources:

• SSGA Website
• MSCI Index Fact Sheet
• ETF.com

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions and investment performance may vary.