Fund-vs-fund · International Equities
Milford Global Equity Fund vs Smart US 500 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 investment approach. The Smart US 500 ETF is a passive index fund: 99.93% of its portfolio is held in the Vanguard S&P 500 ETF, giving investors near-total exposure to the 500 largest US-listed companies with no active stock selection. The Milford Global Equity Fund is actively managed, with its portfolio spread across individual global equities and multi-currency cash positions, reflecting ongoing manager discretion over security selection and positioning.
This difference in approach is closely connected to cost. Milford charges an annual fund charge of 1.35%, compared with 0.34% for the Smart US 500 ETF — a gap of 1.01 percentage points annually. Over time, that differential compounds materially against returns.
On five-year returns, the Smart US 500 ETF recorded 17.84% per annum versus Milford's 6.29% — though this period captured an exceptional run for large-cap US equities that concentrated in the S&P 500's constituents, and past performance is not a reliable indicator of future returns. Both funds carry a risk indicator of 5 on a 1–7 scale and hold identical growth asset allocations of 98.31%. Milford's fund is larger at approximately NZD 2.26 billion versus NZD 1.02 billion for the Smart US 500 ETF. Geographic concentration is a key distinguishing risk: the Smart US 500 ETF is entirely US-focused, while Milford's mandate is global.
Verify all figures against each fund's current product disclosure statement and latest quarterly fund update on FMA Disclose before relying on 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
- Smart US 500 ETF charges 1.01% lower in annual fund charges (0.34% vs 1.35%).
- Both are New Zealand PIE funds — investor tax is capped at the Prescribed Investor Rate (PIR), maximum 28%.
- Milford Global Equity Fund is roughly 2.3× the size of the other fund.
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
Milford
1.35%
Highest 12% of cohort
Smartshares
0.34%
Lowest 23% of cohort
5-year return p.a.
Past performance — not a predictor
Milford
6.29%
Lower half over 5 years
Smartshares
14.14%
Top 1% over 5 years
Fund size
Larger = more stable, lower close-risk
Milford
NZ$2.26b
Largest 3% in cohort
Smartshares
NZ$963m
Largest 4% in cohort
| Metric | Milford | Smartshares | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 1.35% | 0.34% | Lower is better |
| Risk indicator (1–7) | 5 | 5 | Higher = more volatility |
| 5-year return p.a. | 6.29% | 14.14% | Higher is better (past not future) |
| Fund size | NZ$2.26b | NZ$963m | 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
Milford weight in shared
11.6%
of Milford Global Equity Fund top 10 is shared
Smartshares weight in shared
1.2%
of Smart US 500 ETF top 10 is shared
| Holding | Milford | Smartshares |
|---|---|---|
| $ USD Cash Current Account (HSBC) US | 7.65% | 0.58% |
| $ AUD Cash Current Account (HSBC) AU | 3.92% | 0.58% |
"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
Milford
Milford Global Equity Fund
The Fund’s objective is to provide capital growth by out-performing the relevant share market index after the base fund fee but before tax and before the performance fee over the minimum recommended investment timeframe of eight years. It primarily invests in international equities.Full Milford Milford Global Equity Fund profile →
Smartshares
Smart US 500 ETF
The Smart US 500 ETF is designed to track the return (before tax, fees and other expenses) of the S&P 500 Index. The Index is comprised of 500 of the largest listed companies in the United States.Full Smartshares Smart US 500 ETF profile →
Common questions
What's the difference between the Milford Global Equity Fund and the Smart US 500 ETF?
Which fund has lower fees, Milford Global Equity Fund or Smart US 500 ETF?
How do the 5-year returns compare?
Are both funds PIE-taxed in NZ?
Where can I read the official documents for these funds?
