Fund-vs-fund · International Equities
Kernel S&P 500 (Unhedged) Fund vs Smart Emerging Markets 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 market exposure. The Smartshares Smart Emerging Markets ESG ETF channels 99.95% of its portfolio into a single underlying instrument — the iShares MSCI EM IMI ESG Screened UCITS ETF — providing broad exposure to emerging market equities with an ESG screen applied. The Kernel S&P 500 (Unhedged) Fund tracks the S&P 500 index, holding individual large-cap US companies directly; its top five positions (Nvidia at 7.60%, Apple at 6.68%, Microsoft at 4.93%, Amazon at 3.65%, and Alphabet Class A at 3.00%) reflect a heavy concentration in US technology-adjacent names. These are meaningfully different geographic and economic bets.
On fees, Kernel charges 0.25% annually versus Smartshares at 0.59% — a 34 basis point difference that compounds over time. Risk indicators diverge as well: Smartshares carries a score of 5, Kernel a 6, indicating Kernel's portfolio is assessed as carrying higher volatility on the standardised FMA scale. Fund sizes are comparable — NZD 26.4 million and NZD 28.3 million respectively — and both sit at roughly 98% growth assets. Smartshares discloses a five-year return of 6.26% per annum; Kernel's five-year return figure is not available in this snapshot, likely reflecting the fund's shorter operating history. The Kernel fund is also offered as a KiwiSaver scheme account option, as indicated by its PDS title.
Verify all figures against each fund's current PDS and latest Quarterly Fund Update on FMA Disclose before relying on this summary.
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 (Unhedged) Fund charges 0.34% lower in annual fund charges (0.25% vs 0.59%).
- Both are New Zealand PIE funds — investor tax is capped at the Prescribed Investor Rate (PIR), maximum 28%.
- Smart Emerging Markets 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
0.59%
Lower half of cohort
5-year return p.a.
Past performance — not a predictor
Kernel
—
—
Smartshares
6.26%
Lower half over 5 years
Fund size
Larger = more stable, lower close-risk
Kernel
NZ$28m
Lower half by size
Smartshares
NZ$26m
Smallest 24% in cohort
| Metric | Kernel | Smartshares | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.25% | 0.59% | Lower is better |
| Risk indicator (1–7) | 6 | 5 | Higher = more volatility |
| 5-year return p.a. | — | 6.26% | Higher is better (past not future) |
| Fund size | NZ$28m | NZ$26m | 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 | Unhedged | — | 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 (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 →
Smartshares
Smart Emerging Markets ESG ETF
The Smart Emerging Markets ESG ETF is designed to track the return (before tax, fees and other expenses) of the MSCI EM IMI Screened Index. The Index is comprised of emerging markets 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 Emerging Markets ESG ETF profile →
Common questions
What's the difference between the Kernel S&P 500 (Unhedged) Fund and the Smart Emerging Markets ESG ETF?
Which fund has lower fees, Kernel S&P 500 (Unhedged) Fund or Smart Emerging Markets 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?
