The SPDR MSCI ACWI Climate Paris Aligned ETF (LOWC) is an equity ETF with $0.25 billion in assets under management and an expense ratio of 0.12%. LOWC aims to align with the Paris Agreement's goal of limiting global warming to below 2 degrees Celsius by investing in companies that meet specific climate-related criteria. The fund tracks an index designed to exceed the minimum standards for a “Paris-Aligned Benchmark” under the EU BMR, offering investors exposure to global equities with a focus on climate considerations.
The SPDR MSCI ACWI Climate Paris Aligned ETF (LOWC) is an equity ETF with $0.25 billion in assets under management and an expense ratio of 0.12%. LOWC aims to align with the Paris Agreement's goal of limiting global warming to below 2 degrees Celsius by investing in companies that meet specific climate-related criteria. The fund tracks an index designed to exceed the minimum standards for a “Paris-Aligned Benchmark” under the EU BMR, offering investors exposure to global equities with a focus on climate considerations.
ETF Overview
The fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index. The index is designed to exceed the minimum standards for a “Paris-Aligned Benchmark” under the EU BMR. A Paris-Aligned Benchmark is designed to align with a principal objective of the Paris Agreement to limit the increase in the global average temperature to well below 2 degrees Celsius above pre-industrial levels.
LOWC seeks to replicate the performance of the MSCI ACWI Climate Paris Aligned Index, which is designed to exceed the minimum standards for a “Paris-Aligned Benchmark” under the EU BMR. This means the fund invests in companies that are aligned with the Paris Agreement's goal of limiting global warming. The ETF generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index. The fund's top holdings include major technology companies like Apple Inc (3.46%), Microsoft Corp (2.91%), and Amazon.com Inc (2.23%). Sector allocation is heavily weighted towards Technology (23.4%), Financial Services (18.1%), and Healthcare (13.2%). LOWC provides investors with exposure to a broad range of global equities while incorporating climate-conscious investment principles. The fund's country exposure is currently 100% in 'Other' countries, indicating a global focus outside of the United States.
Risk Metrics
LOWC, while offering exposure to global equities with a climate focus, carries certain risks. The fund's sector allocation is heavily concentrated in Technology (23.4%) and Financial Services (18.1%), making it susceptible to sector-specific downturns. With only 17 holdings, the fund exhibits concentration risk, as the performance of a few key holdings can significantly impact overall returns. The fund's beta of 1.00 indicates that it generally moves in line with the broader market. The expense ratio of 0.12% can create a slight drag on performance over time, although it is relatively low compared to some other thematic ETFs. Past performance does not guarantee future results.
<a href="/etf/xlk">State Street Technology Select Sector SPDR ETF (XLK)</a> (Equity) — 0.08% expense ratio
<a href="/etf/xlf">State Street Financial Select Sector SPDR ETF (XLF)</a> (Equity) — 0.08% expense ratio
<a href="/etf/spy">State Street SPDR S&P 500 ETF Trust (SPY)</a> (Equity) — 0.09% expense ratio
<a href="/etf/zjpn">SPDR Solactive Japan ETF (ZJPN)</a> (Equity) — 0.14% expense ratio
<a href="/etf/sly">SPDR S&P 600 Small Cap ETF (SLY)</a> (Equity) — 0.15% expense ratio
<a href="/etf/fite">State Street SPDR S&P Kensho Future Security ETF (FITE)</a> (Equity) — 0.45% expense ratio
Risk Metrics
Beta: 1.00
Questions & Answers
What is LOWC and what does it track?
LOWC, or the SPDR MSCI ACWI Climate Paris Aligned ETF, is an exchange-traded fund that aims to track the performance of the MSCI ACWI Climate Paris Aligned Index. This index is designed to exceed the minimum standards for a “Paris-Aligned Benchmark” under the EU BMR, aligning with the Paris Agreement's goal of limiting global warming. The fund invests in companies from around the world that meet specific climate-related criteria, offering investors a way to incorporate climate considerations into their equity portfolio. The ETF generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index.
What is the expense ratio for LOWC?
The expense ratio for LOWC is 0.12%. This means that for every $10,000 invested in the fund, investors will pay $12 in annual fees to cover the fund's operating expenses. While expense ratios can vary widely among ETFs, LOWC's 0.12% is relatively competitive, especially considering its thematic focus on climate alignment. This expense ratio can impact overall returns, but it is important to consider it in the context of the fund's investment strategy and potential benefits.
What are the top holdings in LOWC?
The top holdings in LOWC include some of the world's largest and most influential companies. As of 2026-03-15, the top three holdings are Apple Inc (AAPL) at 3.46%, Microsoft Corp (MSFT) at 2.91%, and Amazon.com Inc (AMZN) at 2.23%. Other significant holdings include Facebook Inc A (FB) at 1.24% and Alphabet Inc A (GOOGL) and Alphabet Inc Class C (GOOG), both at 1.14%. These companies represent a significant portion of the fund's overall performance and reflect its focus on global equities.
Is LOWC a good long-term investment?
Whether LOWC is a suitable long-term investment depends on an individual's investment goals, risk tolerance, and belief in the importance of climate-aligned investing. The fund offers exposure to global equities with a focus on companies that meet specific climate-related criteria. Its expense ratio is 0.12%, and it has a dividend yield of 1.55%. The fund's beta of 1.00 suggests it has similar volatility to the overall market. Past performance does not guarantee future results, and investors should carefully consider the fund's investment strategy and risk factors before investing.
How does LOWC compare to similar ETFs?
LOWC differentiates itself through its specific focus on exceeding Paris-Aligned Benchmark standards under the EU BMR. While other ESG or climate-focused ETFs may exist, LOWC's index is designed to align with the Paris Agreement's goal of limiting global warming. The fund has $0.25 billion in assets under management and an expense ratio of 0.12%. When comparing ETFs, factors may be worth researching such as investment strategy, expense ratio, AUM, and historical performance to determine which fund best aligns with their investment objectives. Competitors may have different screening criteria or sector allocations.
Does LOWC pay dividends?
Yes, LOWC does pay dividends. As of 2026-03-15, the fund has a dividend yield of 1.55%. This means that investors can expect to receive approximately 1.55% of their investment in annual dividend payments. Dividend payments can vary over time and are not guaranteed. The dividend yield is influenced by the underlying companies in the fund and their respective dividend policies.