Fund-vs-fund · International Equities
Foundation Series Hedged US 500 Fund vs Smart US ESG 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 cost. The Smart US ESG ETF charges an annual fund charge of 0.34%, while the Foundation Series Hedged US 500 Fund discloses a charge of just 0.03% — a gap of 31 basis points that compounds meaningfully over time on equivalent exposures.
A second material difference is currency treatment. The Smart US ESG ETF holds its underlying position — an iShares MSCI USA ESG Screened UCITS ETF — unhedged, leaving investors exposed to NZD/USD movements. The Foundation Series Hedged US 500 Fund, as its name signals, employs currency hedging back to NZD, reflected in its top holding (Vanguard S&P 500 ETF) showing a weight of 105.23%, which is consistent with the use of derivative overlay instruments for hedging purposes.
The index universe also differs: the Smart US ESG ETF applies ESG screens, whereas the Foundation Series fund tracks the broad S&P 500 without disclosed ESG exclusions. Risk indicators diverge by one band — 5 for the Smart US ESG ETF and 6 for the Foundation Series fund — likely reflecting the currency hedging's interaction with volatility calculations rather than a meaningful difference in underlying equity risk. Both funds sit at 98.31% growth assets.
On five-year returns, the Smart US ESG ETF discloses 14.05% per annum; Fund B's five-year return figure is not available in this snapshot, as the fund appears to lack sufficient history for that calculation.
Verify all figures 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
- Foundation Series Hedged US 500 Fund charges 0.31% lower in annual fund charges (0.03% vs 0.34%).
- Both are New Zealand PIE funds — investor tax is capped at the Prescribed Investor Rate (PIR), maximum 28%.
- Smart US ESG ETF applies responsible-investment / ESG screening. The other fund does not.
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
Foundation Series
0.03%
Lowest 1% of cohort
Smartshares
0.34%
Lowest 23% of cohort
5-year return p.a.
Past performance — not a predictor
Foundation Series
—
—
Smartshares
14.05%
Top 3% over 5 years
Fund size
Larger = more stable, lower close-risk
Foundation Series
NZ$42m
Lower half by size
Smartshares
NZ$39m
Lower half by size
| Metric | Foundation Series | Smartshares | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.03% | 0.34% | Lower is better |
| Risk indicator (1–7) | 6 | 5 | Higher = more volatility |
| 5-year return p.a. | — | 14.05% | Higher is better (past not future) |
| Fund size | NZ$42m | NZ$39m | 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 to NZD | — | Hedged smooths NZD/foreign FX moves at a small cost. |
| Responsible investment screening | No | Yes | 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
Foundation Series weight in shared
0.3%
of Foundation Series Hedged US 500 Fund top 10 is shared
Smartshares weight in shared
0.5%
of Smart US ESG ETF top 10 is shared
| Holding | Foundation Series | Smartshares |
|---|---|---|
| $ Cash at Bank (BNZ) NZ | 0.34% | 0.45% |
"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
Foundation Series
Foundation Series Hedged US 500 Fund
The fund aims for high long-run returns by investing in an Exchange-Traded Fund ('ETF') that invests in shares of the largest companies listed on stock markets in the United States.Full Foundation Series Foundation Series Hedged US 500 Fund profile →
Smartshares
Smart US ESG ETF
The Smart US ESG ETF is designed to track the return (before tax, fees and other expenses) of the MSCI USA Screened Index. The Index is comprised of US companies screened for exposure to controversial weapons, civilian firearms, tobacco, thermal coal and oil sands. The Index excludes companies that fail to comply with the United Nations Global Compact Principles. For more information, please refer to the Smart Responsible Investment Policy.Full Smartshares Smart US ESG ETF profile →
Documents
Crawled directly from each manager's website. How we record provenance →
Foundation Series
LiveLast verified 2026-05-08
Smartshares
Common questions
What's the difference between the Foundation Series Hedged US 500 Fund and the Smart US ESG ETF?
Which fund has lower fees, Foundation Series Hedged US 500 Fund or Smart US ESG ETF?
Are both funds PIE-taxed in NZ?
Does either fund apply responsible-investment screening?
Where can I read the official documents for these funds?
