Fund-vs-fund · Australasian Equities
BetaShares NZ Sustainability Leaders FundvsMercer NZ Shares Passive Fund
Both are Australasian Equities funds available to NZ retail investors. Numbers below are sourced from the FMA Disclose register via Sorted Smart Investor and reflect the latest published quarterly fund updates.
How much do these two overlap?
They hold 29 of the same securities. If you held both, roughly 65.1% of your money would be in the same companies — so the diversification you get from holding the pair is smaller than holding two funds suggests.
| Shared holding | BetaShares NZ | Mercer NZ | Min weight |
|---|---|---|---|
| Fisher & Paykel Healthcare | 9.75% | 16.54% | 9.75% |
| Auckland International Airport | 9.28% | 10.18% | 9.28% |
| Infratil | 9.22% | 8.77% | 8.77% |
| a2 Milk | 8.39% | 6.31% | 6.31% |
| Mainfreight | 3.86% | 3.60% | 3.60% |
| Ebos | 3.58% | 3.44% | 3.44% |
| Mercury NZ | 4.62% | 3.27% | 3.27% |
| Spark New Zealand | 4.15% | 2.95% | 2.95% |
| Fletcher Building | 2.80% | 2.38% | 2.38% |
| Port of Tauranga | 2.08% | 1.83% | 1.83% |
Min weight is the smaller of the two weightings — if you hold both funds, that is the floor of your exposure to that position. Direct holdings only: anything either fund holds through an underlying fund or ETF is not counted, so the real overlap can only be higher. From each fund's FMA Disclose full portfolio filing.
Why these two differ
The most material structural difference between these two funds is their index methodology and screening approach. The Mercer NZ Shares Passive Fund tracks the broad NZ equity market without an explicit sustainability filter, whereas the BetaShares NZ Sustainability Leaders Fund applies an ESG screen that excludes companies failing certain sustainability criteria — a distinction that directly shapes portfolio construction and concentration despite both sitting in the Australasian Equities category.
Both funds carry a risk indicator of 5 (out of 7) and hold nearly identical growth asset allocations of 98.31%. Fee structures diverge: Mercer charges 0.36% annually against BetaShares' 0.59%, a gap of 23 basis points that compounds meaningfully over time. Fund size is comparable — Mercer at approximately NZD 40.5 million and BetaShares at approximately NZD 34.3 million.
Top holdings overlap significantly (Fisher & Paykel Healthcare, Auckland International Airport, Infratil, A2 Milk appear in both), though weighting differs. Mercer's portfolio is more concentrated at the top, with Fisher & Paykel Healthcare at 16.54% versus 9.75% in BetaShares. The BetaShares fund shows a flatter distribution across its top five names, consistent with its sustainability-filtered index design. Xero appears in BetaShares' top five but not in Mercer's disclosed top five.
On performance, Mercer discloses a five-year annualised return of 0.02%; BetaShares' five-year return figure is not available in this snapshot, likely reflecting a shorter fund history.
Always verify fees, returns, and holdings against each fund's current PDS and latest Quarterly Fund Update on FMA Disclose before relying on any of this information.
Comparison generated 2026-07-05 from each fund's FMA Disclose QFU facts as at that date. If the underlying facts change, this narrative is withheld until it is regenerated — the tables on this page always reflect the current data.
What's different at a glance
- Mercer NZ Shares Passive Fund charges 0.23% lower in annual fund charges (0.36% vs 0.59%).
- Both are New Zealand PIE funds — investor tax is capped at the Prescribed Investor Rate (PIR), maximum 28%.
- BetaShares NZ Sustainability Leaders Fund applies responsible-investment / ESG screening. The other fund does not.
Where each fund sits in its cohort
Percentile rank vs all 57 australasian equities funds we've matched on Sorted Smart Investor. Mechanical only — no opinion, no forward-looking view.
Annual fund charge
Lower is better
BetaShares
0.59%
Lower half of cohort
Mercer
0.36%
Lowest 20% of cohort
5-year return p.a.
Past performance — not a predictor
BetaShares
—
—
Mercer
0.02%
Bottom 4% over 5 years
Fund size
Larger = more stable, lower close-risk
BetaShares
NZ$34m
Lower half by size
Mercer
NZ$41m
Lower half by size
| Metric | BetaShares | Mercer | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.59% | 0.36% | Lower is better |
| Risk indicator (1–7) | 5 | 5 | Higher = more volatility |
| 5-year return p.a. | — | 0.02% | Higher is better (past not future) |
| Fund size | NZ$34m | NZ$41m | Larger = more stable, lower close-risk |
| Growth / income split | 98% / 2% | 98% / 2% | More growth = higher long-run return + volatility |
| NZ tax structure | PIE (PIR-capped) | PIE (PIR-capped) | PIE = simpler. FIF = annual return. |
| Currency hedging | — | — | Hedged smooths NZD/foreign FX moves at a small cost. |
| Responsible investment screening | Yes | No | Specific exclusions live in each fund's SIPO. |
| Available via | Direct | Direct | Platforms accepting retail subscriptions. |
What each fund says it does
BetaShares
BetaShares NZ Sustainability Leaders Fund
The Fund aims to provide an investment return that tracks the performance of the Solactive New Zealand Sustainable Leaders Index, Before taking into account fees and expenses.Full BetaShares BetaShares NZ Sustainability Leaders Fund profile →
Mercer
Mercer NZ Shares Passive Fund
The fund is a passively managed New Zealand shares portfolio that is designed to track the return of the S&P/NZX 50 Index. Environmental, Social and Governance characteristics are integrated into the underlying investment managers' investment processes. The fund aims to provide a return that closely matches the return of the S&P/NZX 50 Index (on a gross basis and including imputation credits).Full Mercer Mercer NZ Shares Passive Fund profile →
Documents
Crawled directly from each manager's website. How we record provenance →
BetaShares
Common questions
What's the difference between the BetaShares NZ Sustainability Leaders Fund and the Mercer NZ Shares Passive Fund?
Which fund has lower fees, BetaShares NZ Sustainability Leaders Fund or Mercer NZ Shares Passive Fund?
Are both funds PIE-taxed in NZ?
Does either fund apply responsible-investment screening?
Where can I read the official documents for these funds?
