Fund-vs-fund · Australasian Equities
Kernel Australia 100 Fund vs Smart Australian Dividend ETF
Both are Australasian 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 index construction methodology, which drives meaningfully different portfolio compositions despite an identical growth asset allocation of 98.31% and the same risk indicator of 5. The Smart Australian Dividend ETF (Smartshares) targets dividend-yielding Australian companies, resulting in concentrated positions in Telstra (9.86%), Wesfarmers (9.72%), and Transurban (9.52%), with financials present but not dominant. The Kernel Australia 100 Fund tracks the broad Australian market by capitalisation, producing a heavier weighting to the big-four banks — Commonwealth Bank alone sits at 11.87% — and to resources via BHP Group (10.83%), a sector entirely absent from Smartshares' top five.
The fee difference is also consequential over time. Kernel charges an annual fund charge of 0.25%, against Smartshares' 0.54% — more than double. On a comparable fund size (Kernel: approximately NZD 53.4 million; Smartshares: approximately NZD 47.5 million), both are similarly modest in scale. Smartshares discloses a five-year annualised return of 9.27%; Kernel's five-year return figure is not available in our current data snapshot, likely reflecting the fund's shorter operating history, so a direct long-run performance comparison cannot be made here.
Both funds carry risk indicator 5 on the standardised 1–7 scale, signalling similar short-term volatility expectations. Neither is available as a KiwiSaver scheme account option based on the data sourced.
Always verify fees, returns, and portfolio details against each fund's current PDS and latest Quarterly Fund Update on FMA Disclose before relying on any of this information.
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
- Kernel Australia 100 Fund charges 0.29% lower in annual fund charges (0.25% vs 0.54%).
- 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 58 australasian equities funds we've matched on Sorted Smart Investor. Mechanical only — no opinion, no forward-looking view.
Annual fund charge
Lower is better
Kernel
0.25%
Lowest 10% of cohort
Smartshares
0.54%
Lower half of cohort
5-year return p.a.
Past performance — not a predictor
Kernel
—
—
Smartshares
10.24%
Top 9% over 5 years
Fund size
Larger = more stable, lower close-risk
Kernel
NZ$53m
Lower half by size
Smartshares
NZ$52m
Lower half by size
| Metric | Kernel | Smartshares | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.25% | 0.54% | Lower is better |
| Risk indicator (1–7) | 5 | 5 | Higher = more volatility |
| 5-year return p.a. | — | 10.24% | Higher is better (past not future) |
| Fund size | NZ$53m | NZ$52m | 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 | InvestNow · Sharesies · 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
2
of each fund's top 10
Kernel weight in shared
15.4%
of Kernel Australia 100 Fund top 10 is shared
Smartshares weight in shared
18.5%
of Smart Australian Dividend ETF top 10 is shared
| Holding | Kernel | Smartshares |
|---|---|---|
 Commonwealth Bank of Australia AU | 11.87% | 9.76% |
| WE Wesfarmers Ltd AU | 3.50% | 8.71% |
"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
Kernel
Kernel Australia 100 Fund
The Kernel Australia 100 Fund�s investment objective is to provide a return (before tax, fees and expenses) that closely matches the return on the S&P/ASX 100 Index.Full Kernel Kernel Australia 100 Fund profile →
Smartshares
Smart Australian Dividend ETF
The Smart Australian Dividend ETF is designed to track the return (before tax, fees and other expenses) of the S&P/ASX Dividend Opportunities Index. The Index is comprised of 50 high yielding companies listed on the ASX and included in the S&P/ASX 300 Index.Full Smartshares Smart Australian Dividend ETF profile →
Common questions
What's the difference between the Kernel Australia 100 Fund and the Smart Australian Dividend ETF?
Which fund has lower fees, Kernel Australia 100 Fund or Smart Australian Dividend ETF?
Are both funds PIE-taxed in NZ?
Where can I read the official documents for these funds?
