ETF and index fund investing is the cornerstone of low-cost passive investing in New Zealand. But your platform choice can cost you as much or more in fees than the ETFs themselves. Here’s how the platforms compare.
InvestNow has the lowest fund fees in this comparison: no platform fee, and fund fees from ~0.03% up to 0.37% depending on the fund. Simplicity charges 0.23% (no member fee) on its diversified funds from 1 October 2026. Kernel charges 0.25% with a $1 minimum and a mobile app. Sharesies no longer charges an ongoing % platform fee, but its 1.9% per-trade brokerage (capped at $25 NZD) adds up for frequent small purchases, unlike InvestNow or Kernel, which charge no brokerage. US ETFs (VOO, VTI) are available through brokers such as Tiger Brokers or IBKR. Compare current fees on Sorted's Smart Investor before deciding.
The Two Types of ETF Investing in NZ
Option 1: NZ PIE managed funds (technically not ETFs, but functionally similar) These track the same indices as ETFs but are structured as NZ PIE managed funds rather than exchange-traded instruments.
- Examples: InvestNow Foundation Series, Simplicity Growth Fund, Kernel High Growth
- Taxed at PIR (max 28%) — no FIF above $50,000
- Auto-invest available (no trading required)
- Cannot be bought/sold intraday
Option 2: NZX-listed ETFs (Smart, formerly Smartshares) or US-listed ETFs True ETFs traded on the NZX or US markets.
- Examples: Smart TWF (NZX), VOO (NYSE)
- NZX ETFs: PIE, no FIF. US ETFs: non-PIE, FIF above $50,000 NZD
- Buy/sell intraday on exchange
PIE managed funds are taxed at your PIR (capped at 28%), avoid FIF, and support auto-invest, which is why many long-term NZ investors use them.
Platform Comparison for ETF/Index Fund Investing
Platforms are listed alphabetically.
| Platform | Fund fee | Platform fee | Total cost | PIE? | Auto-invest |
|---|---|---|---|---|---|
| IBKR (US ETFs) | 0.03–0.07% | $0 | 0.03%+FX | ❌ | ❌ |
| InvestNow | 0.03%–0.37% depending on fund | $0 | from ~0.03% | ✅ | ✅ |
| Kernel | 0.25% | $0 | 0.25% | ✅ | ✅ |
| Sharesies (buying Smart ETFs) | 0.20–0.59% | $0 ongoing (1.9% brokerage per trade, capped at $25 NZD) | fund fee + per-trade brokerage | ✅ | ✅ |
| Simplicity | 0.23% (diversified) / 0.10%–0.15% (single-sector) | $0 | 0.23% (diversified) | ✅ | ✅ |
| Smart, formerly Smartshares (direct) | 0.20–0.59% | $0 | 0.20–0.59% | ✅ | ❌ |
| Tiger Brokers (US ETFs) | 0.03–0.07% | ~$0 | 0.03%+FX | ❌ | ❌ |
Note: InvestNow’s Foundation Series index funds (the source of its cheapest fees, from 0.03%) carry their own 0.50% buy / 0.50% sell fee on top of the annual fund fee, since each invests into an underlying ETF; the three Foundation Series diversified funds (0.37%) don’t charge it. This is a fund-level fee, not an InvestNow platform fee, but it matters for frequent small purchases.
How Platforms Compare by Use Case
Single diversified PIE fund
Simplicity (0.23%, no member fee)
- Simplicity Growth Fund: globally diversified, NZ-included, ESG exclusions
- $1,000 minimum; low fee though no longer the outright cheapest (InvestNow’s narrowest global funds now undercut it)
- No platform fee, no fund selection needed
Lowest fund fees with fund choice
InvestNow (Foundation Series from 0.03%, or the Vanguard International Shares Select Exclusions Index Fund at 0.20% for broader global equities)
- 10 Foundation Series funds plus 100+ other managed funds from other providers
- You set your own NZ/global split and bond allocation
- $250/fund minimum, no platform fee (the Foundation Series index funds carry a 0.50% buy/sell fee on top of the annual fee)
$1 minimum with a mobile app
Kernel (0.25%)
- Mobile app, $1 minimum
- KiwiSaver integration
- S&P 500, Global 100, NZ 20: more specific index access
NZX-listed ETFs
Smart (formerly Smartshares) direct account or Tiger Brokers
- Smart TWF (0.40%) via direct account or NZX broker; Smart’s narrower USF (US 500, 0.34%) is cheaper if you don’t need global breadth
- Tiger Brokers: NZX access, 0.35% FX (NZD/USD) for US ETFs
US-listed ETFs
Tiger Brokers or IBKR
- Tiger: 0.35% FX (NZD/USD), NZX access
- IBKR: 0.08–0.20% FX, $0 brokerage (Lite); the lower FX rates apply to larger amounts
- Both: FIF tax above $50,000 NZD applies, so factor it into total cost
Fee Impact Over Time
$100,000 invested, 8% annual return, 20 years
Sorted by annual fee, lowest first.
| Platform | Total fee | Portfolio after 20 years |
|---|---|---|
| InvestNow (Vanguard International Shares Select Exclusions Index Fund, 0.20%) | ~$17,000 in fees | ~$449,100 |
| Simplicity (0.23%) | ~$19,500 in fees | ~$446,600 |
| Kernel (0.25%) | ~$21,100 in fees | ~$445,000 |
| Sharesies (buying Smart TWF, 0.40% fund fee, no ongoing platform fee) | ~$33,300 in fees | ~$432,800 |
Assumes 8% gross return, compounding, no additional contributions. Recomputed as FV(gross return) − FV(gross return − fee) over 20 years — exact outcomes depend on market performance.
The difference between InvestNow’s Vanguard International Shares fund (0.20%) and Sharesies/Smart TWF (0.40%) on $100,000 over 20 years: approximately $16,000 in fees.
Common Mistakes in ETF Platform Selection
Choosing based on app design alone: Sharesies has a popular app, and while it no longer charges an ongoing % platform fee, its 1.9% per-trade brokerage adds up if you’re making frequent small purchases. Over 20 years of regular small buys, that’s a meaningful cost.
Not accounting for PIE vs non-PIE: US ETFs (VOO, VTI) seem cheaper (0.03% fee) but:
- Dividends taxed at marginal rate (not PIR max 28%)
- FIF tax above $50,000 adds ~1.65% at 33% rate
- No auto-invest — requires manual trades
Choosing based on familiarity with your main bank: bank-linked funds can charge more than the index funds in the table above; compare the fee in each fund’s PDS.
Not setting PIR correctly: Overpaying tax on returns is a real cost. Always provide the correct PIR when opening an account.
Summary by Feature
| Feature | Platforms offering it |
|---|---|
| Single diversified fund, 0.23%, no member fee | Simplicity |
| Own NZ/global split, Foundation Series from 0.03% | InvestNow |
| $1 minimum, KiwiSaver integration | Kernel |
| NZX shares + index funds in one place | Sharesies (1.9% brokerage per trade, capped), or Tiger + InvestNow |
| US ETFs, low FX rates | Tiger Brokers or IBKR |
| US ETFs, simpler interface than IBKR | Stake |
Which suits you depends on what you want to hold, how often you buy, and how much you invest.
Where to check the latest data
Rates, fees and returns change often. Before deciding, check current figures yourself:
- Sorted Smart Investor: compares fees, returns and risk levels of KiwiSaver and managed funds.
- Disclose register: holds each fund's product disclosure statement and quarterly fund updates.
- Financial Service Providers Register: shows whether a provider is registered to offer financial services in New Zealand.
- The provider's own website: has its current rates, fees and full terms; these change more often than any comparison page.