State Street Global Advisors today introduced two SPDR MSCI Climate Paris Aligned ETFs designed to help investors meet their climate objectives.
The SPDR MSCI USA Climate Paris Aligned ETF (NZUS) and the SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) track the MSCI USA Climate Paris Aligned and MSCI ACWI Climate Paris Aligned Indexes, respectively, and are designed to support investors interested in addressing climate change in their portfolios and who wish to pursue opportunities arising from the transition to a lower-carbon economy while aligning with the Paris Agreement requirements.
“Climate change almost certainly will drive significant structural shifts in the global economy, poses new risks to and opportunities for long-term investments, and potentially creates risks to the financial system,” said Ron O’Hanley, chairman and CEO of State Street Corp., in a news release. “Our primary focus is on long-term value creation for investors. We apply the insights we gain from working with global institutional investors to our own ESG priorities as a company.”
The Climate Paris Aligned ETFs are core equity exposures that may help investors implement net-zero strategies and address climate change in a holistic manner.
“The introduction of NZUS and NZAC gives ESG investors more choices on their journey to net zero,” O’Hanley added.
As SSGA announced, NZAC was previously the SPDR MSCI ACWI Low Carbon Target ETF (LOWC). The issuer not only changed the fund’s name and ticker, but also its benchmark. The fund also underwent a 4:1 stock split, and the total expense ratio has been reduced from 20 basis points to 12 basis points.
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