Fund-vs-fund · International Equities
Kernel S&P 500 (NZD Hedged) FundvsKernel S&P 500 (Unhedged) Fund
Kernel S&P 500 (NZD Hedged) Fund (fund size NZ$33.0 million, annual fund charge 0.25%) and Kernel S&P 500 (Unhedged) Fund (fund size NZ$28.3 million, annual fund charge 0.25%) are both international equities managed funds, as shown on Sorted Smart Investor on 22 May 2026; for the year to 31 March 2026 their 1-year returns after fees and tax were 12.56% and 15.10%, per their quarterly fund updates filed on FMA Disclose.
How much do these two overlap?
They hold 502 of the same securities. If you held both, roughly 100.0% of your money would be in the same companies — so the diversification you get from holding the pair is smaller than holding two funds suggests.
| Shared holding | Kernel S&P | Kernel S&P | Min weight |
|---|---|---|---|
| Nvidia | 7.62% | 7.60% | 7.60% |
| Apple | 6.70% | 6.68% | 6.68% |
| Alphabet | 5.42% | 5.40% | 5.40% |
| Microsoft | 4.94% | 4.93% | 4.93% |
| Amazon.com | 3.66% | 3.65% | 3.65% |
| Broadcom | 2.64% | 2.63% | 2.63% |
| Meta Platforms | 2.25% | 2.24% | 2.24% |
| Tesla | 1.88% | 1.87% | 1.87% |
| Berkshire Hathaway | 1.58% | 1.58% | 1.58% |
| JPMorgan Chase & Co | 1.43% | 1.42% | 1.42% |
Min weight is the smaller of the two weightings — if you hold both funds, that is the floor of your exposure to that position. Direct holdings only: anything either fund holds through an underlying fund or ETF is not counted, so the real overlap can only be higher. From each fund's FMA Disclose full portfolio filing.
Why these two differ
The most material structural difference between these two funds is currency treatment. The Kernel S&P 500 (NZD Hedged) Fund uses currency hedging to neutralise the effect of NZD/USD exchange rate movements on returns, while the Kernel S&P 500 (Unhedged) Fund carries full exposure to that currency fluctuation. This means the hedged fund's returns will more closely track the S&P 500's USD performance in NZD terms, whereas the unhedged fund's returns will rise or fall partly with movements in the NZD relative to the USD — adding a layer of volatility that can work in either direction.
Beyond that single structural distinction, the two funds are near-identical across every other disclosed dimension. Both are managed by Kernel, sit in the International Equities category, carry a risk indicator of 6 on the standard 1–7 scale, charge an annual fund charge of 0.25%, and allocate 98.37% to growth assets. Top holdings and their weights are virtually the same — Nvidia, Apple, Microsoft, Amazon, and Alphabet Class A in that order. The hedged fund is marginally larger at approximately NZD 33.0 million versus NZD 28.3 million for the unhedged fund. Five-year return data is not disclosed for either fund in this snapshot, so historical performance comparison is not possible here. Both share the same PDS as at August 2025.
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
- Annual fund charges are within 0.05% of each other (0.25% vs 0.25%).
- Both are New Zealand PIE funds — investor tax is capped at the Prescribed Investor Rate (PIR), maximum 28%.
- Kernel S&P 500 (NZD Hedged) Fund hedges its foreign-currency exposure to NZD; Kernel S&P 500 (Unhedged) Fund is unhedged. NZD weakness boosts unhedged returns and reduces hedged returns (the inverse on NZD strength).
Where each fund sits in its cohort
Percentile rank vs all 84 international 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 15% of cohort
Kernel
0.25%
Lowest 15% of cohort
5-year return p.a.
Past performance — not a predictor
Kernel
—
—
Kernel
—
—
Fund size
Larger = more stable, lower close-risk
Kernel
NZ$33m
Lower half by size
Kernel
NZ$28m
Lower half by size
| Metric | Kernel | Kernel | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.25% | 0.25% | Lower is better |
| Risk indicator (1–7) | 6 | 6 | Higher = more volatility |
| 5-year return p.a. | — | — | Higher is better (past not future) |
| Fund size | NZ$33m | NZ$28m | 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 | Unhedged | 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. |
What each fund says it does
Kernel
Kernel S&P 500 (NZD Hedged) Fund
The Kernel S&P 500 (NZD Hedged) Fund�s investment objective is to provide a return (before tax, fees and expenses) that closely matches the return on the S&P 500 NZD Hedged IndexFull Kernel Kernel S&P 500 (NZD Hedged) Fund profile →
Kernel
Kernel S&P 500 (Unhedged) Fund
The Kernel S&P 500 (Unhedged) Fund�s investment objective is to provide a return (before tax, fees and expenses) that closely matches the return on the S&P 500 (NZD) IndexFull Kernel Kernel S&P 500 (Unhedged) Fund profile →
Common questions
What's the difference between the Kernel S&P 500 (NZD Hedged) Fund and the Kernel S&P 500 (Unhedged) Fund?
Which fund has lower fees, Kernel S&P 500 (NZD Hedged) Fund or Kernel S&P 500 (Unhedged) Fund?
Are both funds PIE-taxed in NZ?
Where can I read the official documents for these funds?
