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 investment mandate. The Smartshares Smart Australian Dividend ETF selects stocks based on a dividend-yield screen, concentrating exposure in income-generating names — its top five holdings include Telstra Group (10.9%), Transurban Group (9.37%), and Santos (7.05%), reflecting a tilt toward utilities, infrastructure, and energy. The Kernel Australia 100 Fund tracks a broad market-cap index of the largest 100 Australian securities, weighting more heavily toward financials and resources; Commonwealth Bank of Australia leads at 11.87%, followed by BHP Group (10.83%) and three major banks occupying the next three positions. A dividend-screened portfolio and a market-cap portfolio will behave differently across market cycles even when both carry a risk indicator of 5 and an almost identical growth-asset allocation of 98.31%.
The fee difference is also significant: Smartshares charges 0.54% per annum versus Kernel's 0.25%, a gap of 29 basis points that compounds materially over time. On five-year performance, Smartshares reports a 10.24% annualised return; Kernel's five-year figure is not available in this snapshot, likely reflecting the fund's shorter operating history. Fund sizes are comparable — Smartshares at NZD 52.3 million, Kernel at NZD 53.4 million. Neither fund is a KiwiSaver scheme account.
Verify all figures against the source 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
- 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 | 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?
