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Index Funds Comparison

Compare low-cost index funds available to NZ investors

Lowest Fee

0.03%

Vanguard S&P 500

Average Fee

0.23%

All funds

Funds Available

30

NZ accessible

Best 5Y Return

15.7%

Vanguard S&P 500

Showing 30 of 30 funds

iShares Core S&P 500 ETF

iSharesIVV

Expense Ratio

0.03%

Tracking Error

2.00%

5Y Return

N/A

AUM

$600.0B

US Large CapETF

Low-fee S&P 500 tracker

Vanguard FTSE Developed Markets ETF

VanguardVEA

Expense Ratio

0.03%

Tracking Error

5.00%

5Y Return

N/A

AUM

$130.0B

Developed ex-USETF

Developed markets outside the U.S.

Vanguard Total Stock Market ETF

VanguardVTI

Expense Ratio

0.03%

Tracking Error

3.00%

5Y Return

N/A

AUM

$400.0B

US Total MarketETF

Broad exposure to nearly the entire U.S. stock market

Vanguard S&P 500 ETF

VanguardVOO

Expense Ratio

0.03%

Tracking Error

2.00%

5Y Return

15.7%

AUM

$400.0B

US Large CapETF

Tracks the S&P 500 Index, representing 500 of the largest U.S. companies

Vanguard Total International Stock ETF

VanguardVXUS

Expense Ratio

0.05%

Tracking Error

5.00%

5Y Return

N/A

AUM

$100.0B

Global ex-USETF

Complete international market outside the U.S.

iShares Core MSCI EAFE ETF

iSharesIEFA

Expense Ratio

0.07%

Tracking Error

6.00%

5Y Return

N/A

AUM

$100.0B

Developed ex-USETF

Developed markets (Europe, Australasia & Far East), ex U.S. & Canada

Vanguard FTSE All-World ex-US ETF

VanguardVEU

Expense Ratio

0.07%

Tracking Error

5.00%

5Y Return

N/A

AUM

$39.0B

Global ex-USETF

Broad international (developed + emerging) outside the U.S.

Vanguard Total World Stock ETF

VanguardVT

Expense Ratio

0.07%

Tracking Error

4.00%

5Y Return

11.2%

AUM

$35.0B

Global EquityETF

Provides exposure to the entire world stock market in a single fund

Vanguard Emerging Markets ETF

VanguardVWO

Expense Ratio

0.08%

Tracking Error

15.00%

5Y Return

3.8%

AUM

$85.0B

Emerging MarketsETF

Broad exposure to emerging market equities

iShares Core MSCI Emerging Markets ETF

iSharesIEMG

Expense Ratio

0.09%

Tracking Error

15.00%

5Y Return

N/A

AUM

$80.0B

Emerging MarketsETF

Comprehensive emerging-markets exposure (large, mid & small cap)

SPDR S&P 500 ETF Trust

State Street (SPDR)SPY

Expense Ratio

0.09%

Tracking Error

2.00%

5Y Return

N/A

AUM

$600.0B

US Large CapETF

Oldest & most-traded S&P 500 ETF

Simplicity NZ Share Fund

SimplicityN/A

Expense Ratio

0.10%

Tracking Error

20.00%

5Y Return

5.8%

AUM

$380M

NZ EquityMutual FundNZDPIE

Non-profit, low-cost NZ equity fund with ethical exclusions

Invesco NASDAQ 100 ETF

InvescoQQQM

Expense Ratio

0.15%

Tracking Error

10.00%

5Y Return

N/A

AUM

$58.2B

US Large GrowthETF

Lower-fee NASDAQ-100 tracker from Invesco

Simplicity Unhedged Global Share Fund

SimplicityN/A

Expense Ratio

0.15%

Tracking Error

20.00%

5Y Return

N/A

AUM

$2.4B

Global Equity (Developed)Mutual FundNZDPIE

Low-fee NZ fund tracking developed markets ex-NZ with ESG screens

Invesco QQQ Trust

InvescoQQQ

Expense Ratio

0.20%

Tracking Error

10.00%

5Y Return

N/A

AUM

$355.0B

US Large GrowthETF

Tracks the NASDAQ-100: the 100 largest non-financial companies listed on Nasdaq

Smartshares NZ Top 50 ETF

SmartsharesFNZ

Expense Ratio

0.20%

Tracking Error

15.00%

5Y Return

6.3%

AUM

$650M

NZ Large CapETFNZDPIE

Tracks the S&P/NZX 50 Index, the 50 largest companies on the NZX

iShares MSCI World ETF

iSharesURTH

Expense Ratio

0.24%

Tracking Error

8.00%

5Y Return

12.1%

AUM

$2.5B

Developed MarketsETF

Tracks developed market equities globally, excluding emerging markets

Kernel S&P Global 100 Fund

KernelN/A

Expense Ratio

0.25%

Tracking Error

20.00%

5Y Return

N/A

AUM

$120M

Global Equity (Large Cap)Mutual FundNZDPIE

NZ PIE tracking S&P Global 100 (large, multinational firms)

Kernel NZ 20 Fund

KernelN/A

Expense Ratio

0.25%

Tracking Error

18.00%

5Y Return

N/A

AUM

$120M

NZ Large CapMutual FundNZDPIE

Low-cost exposure to the 20 largest NZ companies

Invesco EQQQ NASDAQ-100 UCITS ETF (Dist)

InvescoEQQQ

Expense Ratio

0.30%

Tracking Error

12.00%

5Y Return

N/A

AUM

$9.0B

US Large GrowthETF

UCITS-domiciled NASDAQ-100 ETF with quarterly distributions

iShares NASDAQ 100 UCITS ETF (USD Acc)

iSharesCNDX

Expense Ratio

0.30%

Tracking Error

12.00%

5Y Return

N/A

AUM

$21.4B

US Large GrowthETF

UCITS-domiciled (Ireland) NASDAQ-100 with accumulating share class

iShares MSCI ACWI ETF

iSharesACWI

Expense Ratio

0.32%

Tracking Error

8.00%

5Y Return

N/A

AUM

$22.4B

Global EquityETF

One-ticket global developed + emerging markets (large & mid cap)

Smartshares US 500 ETF

SmartsharesUSF

Expense Ratio

0.34%

Tracking Error

12.00%

5Y Return

15.2%

AUM

$1.8B

US Large CapETFNZDPIE

NZD-hedged exposure to the S&P 500 index with PIE tax benefits

Smartshares Total World ETF

SmartsharesTWF

Expense Ratio

0.40%

Tracking Error

20.00%

5Y Return

N/A

AUM

$600M

Global EquityETFNZDPIE

NZ-listed PIE giving total-world exposure (via Vanguard VT)

iShares Global Clean Energy ETF

iSharesICLN

Expense Ratio

0.42%

Tracking Error

35.00%

5Y Return

12.1%

AUM

$5.8B

ThematicETF

Focuses on companies in the clean energy sector globally

AMP Capital Global Index Fund

AMPN/A

Expense Ratio

0.44%

Tracking Error

25.00%

5Y Return

11.5%

AUM

$450M

Global EquityMutual FundNZDPIE

Globally diversified index fund with PIE tax benefits for NZ investors

BetaShares Nasdaq 100 ETF

BetaSharesNDQ

Expense Ratio

0.48%

Tracking Error

25.00%

5Y Return

N/A

AUM

$6.9B

US Large GrowthETF

ASX-listed NASDAQ-100 exposure; no W-8BEN form required

Smartshares Asia Pacific ETF

SmartsharesAPA

Expense Ratio

0.55%

Tracking Error

20.00%

5Y Return

N/A

AUM

$100M

Regional (APAC ex-Japan/US)ETFNZDPIE

NZX PIE for developed Asia-Pacific exposure

Smartshares Europe ETF

SmartsharesEUF

Expense Ratio

0.55%

Tracking Error

20.00%

5Y Return

N/A

AUM

$120M

Regional (Europe)ETFNZDPIE

NZX PIE with broad European equity exposure

Smartshares Emerging Markets ETF

SmartsharesEMF

Expense Ratio

0.59%

Tracking Error

25.00%

5Y Return

N/A

AUM

$200M

Emerging MarketsETFNZDPIE

NZX-listed PIE giving broad EM exposure (via Vanguard VWO)

Understanding Expense Ratios

What is an Expense Ratio?

The annual fee charged by a fund, expressed as a percentage of your investment. A 0.10% expense ratio means you pay $1 per year for every $1,000 invested.

Impact Over Time

On a $10,000 investment over 30 years:

  • • 0.05% fee = $1,500 in total fees
  • • 0.50% fee = $14,000 in total fees
  • • 1.00% fee = $26,000 in total fees

Fee Guidelines

  • Excellent: Under 0.10%
  • Good: 0.10% - 0.25%
  • Average: 0.25% - 0.50%
  • High: Above 0.50%

Tracking Error Explained

What is Tracking Error?

The standard deviation of the difference between fund returns and index returns. Lower tracking error means the fund follows its index more closely.

Acceptable Ranges

  • Large-cap funds: 0.02% - 0.10%
  • International funds: 0.10% - 0.30%
  • Small-cap funds: 0.20% - 0.50%
  • Emerging markets: 0.30% - 1.00%

Causes of Tracking Error

  • • Fund expenses and fees
  • • Cash holdings for redemptions
  • • Sampling vs full replication
  • • Securities lending income
  • • Timing of dividend reinvestment

Assets Under Management (AUM)

What is AUM?

The total market value of all assets that a fund manages on behalf of investors. It represents the size and scale of the fund.

Why AUM Matters

  • Liquidity: Larger funds can handle big trades better
  • Costs: Fixed costs spread over more investors
  • Stability: Less likely to close or merge
  • Tracking: Better ability to replicate index

AUM Guidelines

  • Large: $1B+ (very liquid)
  • Medium: $100M - $1B (good liquidity)
  • Small: $10M - $100M (adequate)
  • Tiny: Under $10M (risky)

Considerations

Very large funds (>$10B) may face challenges in small-cap investing. For broad market index funds, bigger is generally better for NZ investors.

Index Funds for NZ Investors

PIE Tax Benefits

NZ-domiciled funds and some Australian ETFs offer PIE (Portfolio Investment Entity) tax treatment, capping tax at 28% regardless of your marginal rate.

Currency Considerations

NZD-hedged funds reduce currency risk but add ~0.10-0.20% in hedging costs. Unhedged funds provide currency diversification but add volatility.

Access Options

Access index funds through NZX-listed ETFs, InvestNow platform, Sharesies, Hatch, or directly with providers like Kernel and Simplicity.

FIF Tax Rules

Foreign investments over $50,000 are subject to FIF (Foreign Investment Fund) tax rules. Consider NZ-domiciled PIE funds or Australian-listed ETFs to avoid FIF complexity.

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