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: the Foundation Series Hedged US 500 Fund tracks large-cap US equities via the Vanguard S&P 500 ETF, while the Smart US Small Cap ETF holds the Vanguard Small-Cap ETF, giving investors access to smaller US companies with historically different risk and return characteristics. Both sit in the International Equities category with identical risk indicators of 6 and near-identical growth asset allocations of 98.31%.
Cost separates them sharply. Foundation Series discloses an annual fund charge of 0.03%, against Smartshares' 0.51% — a difference of 48 basis points that compounds materially over time on comparable fund sizes (roughly NZD 41.5 million each).
On the currency side, Foundation Series signals hedging in its name, which typically reduces foreign-exchange fluctuation for NZD-based investors; the Smart US Small Cap ETF's name carries no such indication, though investors should consult each fund's SIPO for the definitive hedging policy.
Regarding returns, the Smart US Small Cap ETF discloses a five-year annualised return of 10.35%; Foundation Series does not yet report a five-year figure in this snapshot, likely reflecting the fund's shorter operating history.
The Foundation Series fund holds a single Vanguard ETF position at a disclosed weight of 105.23%, which likely reflects leveraged or derivative-based replication; investors should review the PDS for clarification. Smart US Small Cap ETF's top holding sits at 99.93% with two small cash positions.
Always verify these details against each fund's current PDS and latest Quarterly Fund Update on FMA Disclose before making any investment decision.
Cached comparison generated 2026-05-21 from each fund's latest FMA Disclose QFU. Regenerated when the underlying facts change.
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?
