The S&P 500 is the most-searched investment term in New Zealand — a lot of NZ investors want exposure to the 500 largest US companies. In 2026, there are multiple ways to get it, each with different costs, tax implications, and platforms.
NZ-domiciled S&P 500 PIE funds include the Kernel S&P 500 Fund (0.25% p.a.) and the InvestNow Foundation Series US 500 Fund (0.03% p.a., plus a 0.50%/0.50% buy-sell transaction fee). As PIE funds they avoid FIF tax complexity, cap tax at your PIR (max 28%), and charge no brokerage. Buying US ETFs (VOO, SPY) directly via Hatch or Stake is an alternative but triggers FIF above $50,000 and adds FX costs.
Option 1: NZ-Domiciled PIE Funds
These are NZ-registered funds that track the S&P 500 or similar indices. You invest in NZD, pay tax at your PIR rate, and avoid FIF complexity.
Sorted by annual fee, lowest first:
| Fund | Platform | Fee | What it tracks |
|---|---|---|---|
| Foundation Series US 500 Fund | InvestNow | 0.03% p.a. (plus 0.50%/0.50% buy-sell fee) | S&P 500 index (direct) |
| Foundation Series Total World Fund | InvestNow | 0.06% p.a. (plus 0.50%/0.50% buy-sell fee) | All-world (includes ~60% US) |
| Kernel S&P 500 Fund | Kernel | 0.25% p.a. | S&P 500 index |
| Smart US 500 ETF (USF) | NZX / Smart | 0.34% p.a. | S&P 500 index |
Providers are listed alphabetically below.
Foundation Series US 500 Fund (InvestNow)
A NZ PIE fund tracking the S&P 500: it invests in an ETF holding shares of the largest companies listed on US stock markets. At 0.03% p.a., it has the lowest annual fee of the S&P 500 options covered here; Foundation Series funds also carry a 0.50% buy / 0.50% sell transaction fee on top of the annual fee, which costs more the more often you buy and sell. InvestNow’s Foundation Series Total World Fund (0.06% p.a., same transaction fee) tracks a broader all-world index including emerging markets.
Kernel S&P 500 Fund
A NZ PIE fund that tracks the S&P 500 via the underlying Vanguard S&P 500 ETF (VOO) wrapped into a NZ fund structure. Available for $1 minimum on Kernel with auto-invest.
Smart US 500 ETF (USF)
An NZX-listed ETF that also tracks the S&P 500, at 0.34%, tradeable on the NZX during market hours through an NZX brokerage account. Available via Sharesies, Tiger Brokers, or directly through Smart.
Option 2 — Direct US ETF Purchase (Hatch, Stake, Tiger Brokers)
You can buy VOO, SPY, IVV, or any other S&P 500 ETF directly on a US exchange through Hatch, Stake, or Tiger Brokers. These are the same ETFs global investors use.
| ETF | Expense ratio | Exchange | Annual fee |
|---|---|---|---|
| VOO (Vanguard S&P 500 ETF) | 0.03% | NYSE Arca | Extremely low |
| SPY (SPDR S&P 500 ETF) | 0.09% | NYSE Arca | Low |
| IVV (iShares Core S&P 500 ETF) | 0.03% | NYSE Arca | Extremely low |
These ETFs are cheaper than their NZ-domiciled equivalents (0.03% vs 0.25%). But the total cost calculation changes when you factor in NZ-specific considerations.
The costs of buying direct
FX on purchase and sale: 0.20%–0.70% each way depending on platform.
Brokerage: $3–USD$1.99 per trade.
FIF tax above $50,000: Once your cost price of overseas investments exceeds $50,000, you pay tax on 5% of the opening portfolio value each year regardless of actual gains. See FIF Tax NZ.
Tax rate: FIF income is taxed at your marginal rate (up to 39%), not your PIR (capped at 28%).
Example comparison for a $100,000 portfolio, 8% gross return, marginal rate 33%:
| NZ PIE fund (Kernel S&P 500) | Direct VOO via Hatch | |
|---|---|---|
| Fund/ETF fee | 0.25% = $250 | 0.03% = $30 |
| FX (buy once, hold) | $0 | ~$500 (0.5% on $100k) |
| Tax rate on returns | 28% (PIR cap) | 33% (marginal) |
| FIF income taxed | $0 (PIE fund) | $4,000 (5% × $100k) |
| Tax on FIF income | $0 | $1,320 (33% × $4,000) |
| Total first-year cost | ~$250 | ~$1,850 |
The 0.03% ETF fee advantage of VOO is completely overwhelmed by the FIF tax and FX costs. For NZ investors with balances above $50,000, direct US ETF purchase is almost always more expensive than a NZ PIE fund equivalent.
Below $50,000: The FIF advantage disappears (no FIF below the threshold), but FX costs and the 33% marginal tax on dividends (vs 28% PIR) still make PIE funds competitive.
Option 3 — KiwiSaver with S&P 500 Exposure
Most growth KiwiSaver funds have significant US equity exposure — some are 50–70% US shares. If you’re maximising your KiwiSaver contributions (employer match, government top-up), this is already providing S&P 500 exposure as part of a diversified fund.
You can also choose KiwiSaver funds with explicit US market mandates. Kernel’s KiwiSaver Growth Fund includes global shares (predominantly US). Simplicity’s KiwiSaver Growth Fund is similar.
KiwiSaver is the most tax-advantaged vehicle available to NZ investors for long-term growth — prioritise it before additional direct investing.
How the Options Compare by Situation
| Situation | Relevant facts |
|---|---|
| Small starting amount | Kernel S&P 500 Fund has a $1 minimum; InvestNow’s Foundation Series US 500 Fund has the lower annual fee |
| Over $50k | NZ PIE funds (Kernel S&P 500 Fund 0.25%, Foundation Series US 500 Fund 0.03%) avoid FIF |
| Lowest annual fee among NZ PIE options here | InvestNow Foundation Series US 500 Fund (0.03%, plus 0.50%/0.50% buy-sell fee) |
| Active trader, US citizen, comfortable with FIF | Direct US ETFs such as VOO (e.g. via Interactive Brokers) |
| Already on NZX brokerage | Smart US 500 ETF (USF) can be bought through an existing broker |
Which suits you depends on your balance, how often you buy, and your tax position.
Historical S&P 500 Performance (NZD)
The S&P 500 in NZD terms has delivered strong long-run returns, though currency movements add volatility:
- 10-year annualised return to 2025 (NZD, approximate): ~13–15% p.a. (benefiting from a weakening NZD)
- 2022 bear market: -20% to -25% in NZD terms
- 2020 COVID crash and recovery: -30% peak-to-trough, recovered within ~6 months
Past performance does not guarantee future returns. Currency effects (NZD/USD movements) add a layer of variability to NZD-denominated returns from US investments.
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.
Frequently Asked Questions
Is the S&P 500 the best index to track? It has a strong track record but is 100% US, a significant concentration. A global index (MSCI World or All World) adds diversification across Japan, EU, UK, and other developed markets. Some NZ investors already exposed to the NZX through KiwiSaver add S&P 500 exposure via a NZ PIE fund.
Should I use a hedged or unhedged S&P 500 fund? Hedged funds remove NZD/USD currency risk — they return what the S&P 500 returns in USD, converted to NZD at the hedged rate. Unhedged funds fluctuate with the NZD/USD rate — if NZD weakens, your returns are amplified; if NZD strengthens, returns are reduced. Most NZ investors use unhedged for long-term holdings, but either is valid. See Currency Hedged vs Unhedged ETFs NZ.
Can I buy S&P 500 ETFs through Sharesies? Yes — Sharesies offers Smart US 500 ETF (USF) on the NZX, and also allows direct purchase of VOO/SPY/IVV via the US market. USF is the simpler NZ PIE fund option. Direct VOO triggers FIF above $50,000.