Fund-vs-fund · International Equities
Foundation Series Hedged US 500 Fund vs Smart US Small Cap 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 underlying market exposure, which drives meaningfully different risk and return profiles despite both sitting in the International Equities category with identical risk indicators (6 out of 7) and near-identical growth asset allocations (98.31%). The Foundation Series Hedged US 500 Fund holds the Vanguard S&P 500 ETF at a reported 105.23% weight (a figure exceeding 100% that likely reflects derivative-based currency hedging mechanics) and, as the name signals, applies currency hedging to its US large-cap exposure. The Smart US Small Cap ETF, managed by Smartshares, holds the Vanguard Small-Cap ETF at 99.8%, targeting US small-capitalisation equities with no hedging indicated — meaning returns will fluctuate with NZD/USD movements in addition to equity market movements.
Fee structure represents a second sharp divergence: Foundation Series discloses an annual fund charge of 0.03%, among the lowest on the New Zealand market, while Smartshares discloses 0.51% — seventeen times higher in percentage terms. On a $50,000 balance, that gap is roughly $240 per year before compounding effects.
On performance history, the Smart US Small Cap ETF reports a five-year return of 7.59% per annum; the Foundation Series Hedged US 500 Fund's five-year return is not available in this snapshot, likely reflecting the fund's shorter operating history. Both funds are retail managed funds, not KiwiSaver scheme accounts, though both appear on the Sorted Smart Investor platform. Fund sizes are comparable at approximately $41.5 million and $44.0 million respectively.
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 0.48% lower in annual fund charges (0.03% vs 0.51%).
- 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
Foundation Series
0.03%
Lowest 1% of cohort
Smartshares
0.51%
Lower half of cohort
5-year return p.a.
Past performance — not a predictor
Foundation Series
—
—
Smartshares
7.59%
Lower half over 5 years
Fund size
Larger = more stable, lower close-risk
Foundation Series
NZ$42m
Lower half by size
Smartshares
NZ$44m
Lower half by size
| Metric | Foundation Series | Smartshares | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.03% | 0.51% | Lower is better |
| Risk indicator (1–7) | 6 | 6 | Higher = more volatility |
| 5-year return p.a. | — | 7.59% | Higher is better (past not future) |
| Fund size | NZ$42m | NZ$44m | 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 | 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
Foundation Series weight in shared
0.3%
of Foundation Series Hedged US 500 Fund top 10 is shared
Smartshares weight in shared
0.3%
of Smart US Small Cap ETF top 10 is shared
| Holding | Foundation Series | Smartshares |
|---|---|---|
| $ Cash at Bank (BNZ) NZ | 0.34% | 0.35% |
"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 Small Cap ETF
The Smart US Small Cap ETF is designed to track the return (before tax, fees and other expenses) of the CRSP US Small Cap Index. The Index is comprised of small US companies.Full Smartshares Smart US Small Cap 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 Small Cap ETF?
Which fund has lower fees, Foundation Series Hedged US 500 Fund or Smart US Small Cap ETF?
Are both funds PIE-taxed in NZ?
Where can I read the official documents for these funds?
