Fund-vs-fund · International Equities
Kernel S&P 500 (NZD Hedged) Fund vs Smart US ESG 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 exposure: the Kernel S&P 500 (NZD Hedged) Fund holds individual S&P 500 constituents directly, applying NZD currency hedging, while the Smart US ESG ETF holds a single iShares MSCI USA ESG Screened UCITS ETF (99.95% of the portfolio), meaning investors are exposed to an ESG-screened index via a fund-of-fund structure with no disclosed currency hedge. This ESG screen and the fund-of-fund wrapper represent a fundamentally different risk and exposure profile, not merely a fee or style difference.
On fees, Kernel charges 0.25% annually versus Smartshares at 0.34%. Both funds allocate approximately 98% to growth assets. Their risk indicators differ by one band: Kernel sits at 6 (higher volatility), Smartshares at 5 — a distinction that likely reflects the currency hedging approach and index composition differences. The Smartshares fund discloses a five-year return of 14.05% per annum; Kernel's five-year return is not yet available in this snapshot, possibly reflecting the fund's shorter operating history. Fund sizes are comparable — Kernel at NZD 33.0 million, Smartshares at NZD 38.6 million. Kernel's top disclosed holdings are individual US equities (Nvidia, Apple, Microsoft), whereas Smartshares' effective single-holding structure means underlying company-level weights are not visible at the QFU level.
Verify all figures against each fund's current Product Disclosure Statement and latest Quarterly Fund Update on FMA Disclose before relying on this comparison.
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 S&P 500 (NZD Hedged) Fund charges 0.09% lower in annual fund charges (0.25% vs 0.34%).
- Both are New Zealand PIE funds — investor tax is capped at the Prescribed Investor Rate (PIR), maximum 28%.
- Smart US ESG ETF applies responsible-investment / ESG screening. The other fund does not.
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
Kernel
0.25%
Lowest 15% of cohort
Smartshares
0.34%
Lowest 23% of cohort
5-year return p.a.
Past performance — not a predictor
Kernel
—
—
Smartshares
14.05%
Top 3% over 5 years
Fund size
Larger = more stable, lower close-risk
Kernel
NZ$33m
Lower half by size
Smartshares
NZ$39m
Lower half by size
| Metric | Kernel | Smartshares | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.25% | 0.34% | Lower is better |
| Risk indicator (1–7) | 6 | 5 | Higher = more volatility |
| 5-year return p.a. | — | 14.05% | Higher is better (past not future) |
| Fund size | NZ$33m | NZ$39m | 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 | Yes | 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.
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 →
Smartshares
Smart US ESG ETF
The Smart US ESG ETF is designed to track the return (before tax, fees and other expenses) of the MSCI USA Screened Index. The Index is comprised of US companies screened for exposure to controversial weapons, civilian firearms, tobacco, thermal coal and oil sands. The Index excludes companies that fail to comply with the United Nations Global Compact Principles. For more information, please refer to the Smart Responsible Investment Policy.Full Smartshares Smart US ESG ETF profile →
Common questions
What's the difference between the Kernel S&P 500 (NZD Hedged) Fund and the Smart US ESG ETF?
Which fund has lower fees, Kernel S&P 500 (NZD Hedged) Fund or Smart US ESG ETF?
Are both funds PIE-taxed in NZ?
Does either fund apply responsible-investment screening?
Where can I read the official documents for these funds?
