Fund-vs-fund · Australasian Equities
NZ Funds New Zealand and Australian Shares vs Smart S&P/NZX 50 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 cost: the Smart S&P/NZX 50 ETF charges an annual fund charge of 0.20%, while NZ Funds New Zealand and Australian Shares charges 2.52% — a gap of 2.32 percentage points that compounds significantly over time regardless of market conditions. This fee difference reflects fundamentally different investment approaches: Smartshares tracks the S&P/NZX 50 Index passively, whereas NZ Funds employs active management, which also explains the difference in portfolio construction.
Both funds carry a risk indicator of 5 on the standard 1–7 scale. However, they differ in asset allocation: Smart S&P/NZX 50 ETF holds 98.31% in growth assets, compared to 78.48% for NZ Funds New Zealand and Australian Shares, which retains a more meaningful income or defensive allocation within the same Australasian Equities category. Fund sizes are comparable — approximately NZD 207 million and NZD 194 million respectively.
Over the five-year period disclosed in each fund's latest Quarterly Fund Update, NZ Funds New Zealand and Australian Shares returned 4.59% per annum versus 0.33% for the Smart S&P/NZX 50 ETF. Concentration also differs: Fisher & Paykel Healthcare alone represents 15.93% of the Smartshares fund, reflecting the index-weight of its largest constituent, while NZ Funds' top five holdings are more evenly spread between roughly 5.2% and 6.0% each.
Always verify these figures against the source PDS and latest Quarterly Fund Update on FMA Disclose before relying on any of 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 S&P/NZX 50 ETF charges 2.32% lower in annual fund charges (0.20% vs 2.52%).
- 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
NZ Funds
2.52%
Highest 3% of cohort
Smartshares
0.20%
Lowest 3% of cohort
5-year return p.a.
Past performance — not a predictor
NZ Funds
4.59%
Upper half over 5 years
Smartshares
0.19%
Bottom 13% over 5 years
Fund size
Larger = more stable, lower close-risk
NZ Funds
NZ$194m
Largest 20% in cohort
Smartshares
NZ$198m
Largest 18% in cohort
| Metric | NZ Funds | Smartshares | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 2.52% | 0.20% | Lower is better |
| Risk indicator (1–7) | 5 | 5 | Higher = more volatility |
| 5-year return p.a. | 4.59% | 0.19% | Higher is better (past not future) |
| Fund size | NZ$194m | NZ$198m | Larger = more stable, lower close-risk |
| Growth / income split | 78% / 22% | 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 | InvestNow · Sharesies · 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
3
of each fund's top 10
NZ Funds weight in shared
16.8%
of NZ Funds New Zealand and Australian Shares top 10 is shared
Smartshares weight in shared
10.0%
of Smart S&P/NZX 50 ETF top 10 is shared
| Holding | NZ Funds | Smartshares |
|---|---|---|
 Mainfreight Ltd NZ | 5.45% | 3.61% |
 Mercury NZ Ltd NZ | 5.99% | 3.28% |
 Chorus Ltd NZ | 5.34% | 3.08% |
"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
NZ Funds
NZ Funds New Zealand and Australian Shares
The objective of the New Zealand and Australian Shares fund is to grow your investment over the long term by investing in growth assets and other authorised assets with active management. The fund is anticipated to mainly own and trade New Zealand and Australian shares over the minimum suggested timeframe.Full NZ Funds NZ Funds New Zealand and Australian Shares profile →
Smartshares
Smart S&P/NZX 50 ETF
The Smart S&P/NZX 50 ETF is designed to track the return (before tax, fees and other expenses) of the S&P/NZX 50 Gross with Imputation Index. The Index is comprised of 50 of the largest companies listed on the NZX. The weighting of each company in the Index is based on its market capitalisation.Full Smartshares Smart S&P/NZX 50 ETF profile →
Common questions
What's the difference between the NZ Funds New Zealand and Australian Shares and the Smart S&P/NZX 50 ETF?
Which fund has lower fees, NZ Funds New Zealand and Australian Shares or Smart S&P/NZX 50 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?
