Fund-vs-fund · Australasian Equities
Clarity Trans-Tasman Value FundvsSmart NZ Mid Cap ETF
Clarity Trans-Tasman Value Fund (fund size NZ$132.6 million, annual fund charge 1.06%) is an Australasian equities managed fund and Smart NZ Mid Cap ETF (fund size NZ$132.6 million, annual fund charge 0.60%) is an Australasian equities ETF, as shown on Sorted Smart Investor on 22 May 2026; Clarity Trans-Tasman Value Fund's 1-year return after fees and tax was 13.87% for the year to 31 March 2026, per its quarterly fund update filed on FMA Disclose.
How much do these two overlap?
They hold 15 of the same securities. If you held both, roughly 23.1% 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 | Clarity Trans-Tasman | Smart NZ | Min weight |
|---|---|---|---|
| Mercury NZ | 3.18% | 9.83% | 3.18% |
| Genesis Energy | 2.46% | 3.09% | 2.46% |
| ANZ Group | 6.32% | 2.21% | 2.21% |
| Summerset Group | 2.21% | 4.88% | 2.21% |
| Freightways | 1.84% | 4.87% | 1.84% |
| Ryman Healthcare | 1.49% | 4.50% | 1.49% |
| Tower | 2.44% | 1.45% | 1.45% |
| VITAL HEALTHCARE PROPERTY TRUST | 1.31% | 2.37% | 1.31% |
| Port of Tauranga | 1.30% | 5.52% | 1.30% |
| Channel Infrastructure NZ | 1.29% | 2.71% | 1.29% |
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 investment approach and resulting risk profile. The Smart NZ Mid Cap ETF (Smartshares) is an index-tracking exchange-traded fund focused exclusively on New Zealand mid-cap equities, carrying a risk indicator of 5. The Clarity Trans-Tasman Value Fund is an actively managed fund investing across both New Zealand and Australian equities using a value-oriented strategy, and carries a lower risk indicator of 4 despite holding an identical growth assets allocation of 98.31% — suggesting the rating difference likely reflects portfolio concentration or volatility characteristics rather than asset-class exposure.
The fee difference is meaningful: Smartshares charges 0.60% per annum versus Clarity's 1.06%, a gap of 46 basis points that compounds over time. Against that, the five-year return figures diverge sharply — Clarity returned 5.78% per annum compared to Smartshares' 0.36% — though past performance is not indicative of future returns and the mid-cap NZ equity universe has faced distinct headwinds over this period.
Fund size is nearly identical (approximately NZD 132.6 million each). Holdings differ structurally: Smartshares concentrates in NZ-listed names such as Mercury NZ and Chorus, while Clarity's top positions include large-cap Australian stocks like BHP and ANZ Group, reflecting its trans-Tasman mandate. Clarity's active stock selection introduces manager risk absent from the passive Smartshares structure.
Readers should verify all figures, including fees and return data, against the source 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 NZ Mid Cap ETF charges 0.46% lower in annual fund charges (0.60% vs 1.06%).
- 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 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
Clarity
1.06%
Upper half of cohort
Smartshares
0.60%
Lower half of cohort
5-year return p.a.
Past performance — not a predictor
Clarity
5.78%
Top 24% over 5 years
Smartshares
0.36%
Lower half over 5 years
Fund size
Larger = more stable, lower close-risk
Clarity
NZ$133m
Upper half by size
Smartshares
NZ$133m
Upper half by size
| Metric | Clarity | Smartshares | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 1.06% | 0.60% | Lower is better |
| Risk indicator (1–7) | 4 | 5 | Higher = more volatility |
| 5-year return p.a. | 5.78% | 0.36% | Higher is better (past not future) |
| Fund size | NZ$133m | NZ$133m | 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. |
What each fund says it does
Clarity
Clarity Trans-Tasman Value Fund
The Fund will provide actively managed exposure to New Zealand and Australian equities. The Fund aims to generate a better return than the benchmark over the medium to long term. It employs a value investing strategy, typically favouring companies which offer higher earnings yields. We intend for the Fund to make quarterly income distributions.Full Clarity Clarity Trans-Tasman Value Fund profile →
Smartshares
Smart NZ Mid Cap ETF
The Smart NZ Mid Cap ETF is designed to track the return (before tax, fees and other expenses) of the S&P/NZX MidCap Index. The Index is comprised of companies listed on the NZX that are included in the S&P/NZX 50 Index but are not included in the S&P/NZX 10 Index.Full Smartshares Smart NZ Mid Cap ETF profile →
Common questions
What's the difference between the Clarity Trans-Tasman Value Fund and the Smart NZ Mid Cap ETF?
Which fund has lower fees, Clarity Trans-Tasman Value Fund or Smart NZ Mid Cap 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?
