VEA Delivers Cheapest Broad Developed‑Market Exposure While NZAC Offers Paris‑Aligned Climate Focus

The comparison matters because investors must choose between a near‑zero fee and broad diversification or an ESG‑tilted fund with higher concentration that pursues Paris Agreement alignment.

Overview

Vanguard's VEA charges 0.03% and holds roughly 3,873 developed‑market stocks, making it the lower‑cost way to own broad international equities.
State Street's NZAC charges 0.12% and applies Paris‑aligned ESG screens to build a smaller, climate‑focused portfolio of about 630 stocks.
NZAC is heavily weighted to technology at about 34% with top positions in Apple, Nvidia and Microsoft, creating higher single‑stock and sector concentration than VEA.
Trailing‑12‑month distributions differ: NZAC paid about $0.94 per share for an approximate 2.1% yield while VEA paid about $1.81 per share for an approximate 2.6% yield, which affects income expectations.
The practical choice for investors is clear: pick VEA for the lowest cost and broad diversification or choose NZAC if explicit climate alignment matters despite higher fees, tech concentration, and different income and overlap characteristics.