Fund-vs-fund · International Equities
Clarity - Capital Group New Perspective Fund vs Smart Europe ETF
Both are International 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.
Why these two differ
The most material structural difference between these two funds is their investment approach. The Smart Europe ETF (Smartshares) is a passive, single-holding wrapper: 99.92% of assets sit in the Vanguard FTSE Europe ETF, giving investors concentrated exposure to European listed equities with no active stock selection. The Clarity – Capital Group New Perspective Fund, by contrast, allocates roughly 98% across two share classes of Capital Group's actively managed New Perspective Fund, which targets global growth companies across multiple regions — not Europe specifically — reflecting a fundamentally different geographic and philosophical mandate despite both sitting in the International Equities category.
Fee structures differ meaningfully. The Smart Europe ETF charges 0.55% per annum; the Clarity fund charges 1.21% — a gap of 0.66 percentage points annually, which compounds materially over time. Both carry a risk indicator of 5 and report near-identical growth asset allocations of 98.31%. Fund sizes are similarly close: NZD 151.96 million versus NZD 154.55 million respectively.
On the five-year return figure disclosed in each fund's Quarterly Fund Update, the Smart Europe ETF shows 10.78% per annum and the Clarity fund shows 7.29% per annum. Investors should note these figures reflect different underlying market exposures — European equities versus a global active portfolio — so direct performance comparison has limited interpretive value without adjusting for that difference in mandate.
Always verify these figures against the current Product Disclosure Statement 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
- Smart Europe ETF charges 0.66% lower in annual fund charges (0.55% vs 1.21%).
- Both are New Zealand PIE funds — investor tax is capped at the Prescribed Investor Rate (PIR), maximum 28%.
Where each fund sits in its cohort
Percentile rank vs all 81 international equities funds we've matched on Sorted Smart Investor. Mechanical only — no opinion, no forward-looking view.
Annual fund charge
Lower is better
Clarity
1.21%
Highest 21% of cohort
Smartshares
0.55%
Lower half of cohort
5-year return p.a.
Past performance — not a predictor
Clarity
7.29%
Lower half over 5 years
Smartshares
10.78%
Upper half over 5 years
Fund size
Larger = more stable, lower close-risk
Clarity
NZ$155m
Upper half by size
Smartshares
NZ$152m
Upper half by size
| Metric | Clarity | Smartshares | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 1.21% | 0.55% | Lower is better |
| Risk indicator (1–7) | 5 | 5 | Higher = more volatility |
| 5-year return p.a. | 7.29% | 10.78% | Higher is better (past not future) |
| Fund size | NZ$155m | NZ$152m | 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 | No | No | Specific exclusions live in each fund's SIPO. |
| Available via | Direct | Direct | Platforms accepting retail subscriptions. |
Portfolio overlap
How many top-10 positions both funds hold, and at what weight. Computed from each fund's most recently disclosed top-10 holdings — exact-name matched (Microsoft Corp. = Microsoft Corporation), with a Cash / Cash & Equivalents collapse rule.
Matching holdings
1
of each fund's top 10
Clarity weight in shared
1.9%
of Clarity - Capital Group New Perspective Fund top 10 is shared
Smartshares weight in shared
0.3%
of Smart Europe ETF top 10 is shared
| Holding | Clarity | Smartshares |
|---|---|---|
| $ NZD Cash at Bank NZ | 1.87% | 0.27% |
"Min weight" = the smaller of the two weights — a conservative read of how much exposure you'd have to that position if you held both funds.
What each fund says it does
Clarity
Clarity - Capital Group New Perspective Fund
The Fund aims to achieve long-term growth of capital by investing in shares of companies located around the world. The Fund is managed by Capital Group, and favours companies expected to benefit from structural trends in the global economy.Full Clarity Clarity - Capital Group New Perspective Fund profile →
Smartshares
Smart Europe ETF
The Smart Europe ETF is designed to track the return (before tax, fees and other expenses) of the FTSE Developed Europe All Cap Index. The Index is comprised of large, mid and small cap companies located in European countries.Full Smartshares Smart Europe ETF profile →
Common questions
What's the difference between the Clarity - Capital Group New Perspective Fund and the Smart Europe ETF?
Which fund has lower fees, Clarity - Capital Group New Perspective Fund or Smart Europe ETF?
How do the 5-year returns compare?
Are both funds PIE-taxed in NZ?
Where can I read the official documents for these funds?
