Best smartshare ETFs (in the current climate)

[ratkin]

Looking at setting up a few Smartshares ETFs to diversify away from AUS/NZ
Which ones are looking decent in these turbulent times? Will be drip feeding cash into them
over the next couple of years.

Thought Europe might be a good one as valuations look cheaper than elsewhere due to brexit etc. Any thought on good/bad smartshares to look into?

[Tronald Dump]

Looking at setting up a few Smartshares ETFs to diversify away from AUS/NZ
Which ones are looking decent in these turbulent times? Will be drip feeding cash into them
over the next couple of years.

Thought Europe might be a good one as valuations look cheaper than elsewhere due to brexit etc. Any thought on good/bad smartshares to look into?

I have Emerging Markets, Europe and US Value. Value stocks have been out of favour for years, but I expect them to be a more defensive holding than the US500 fund. I'm also hoping there'll be a big rotation away from growth and back to value at some point!

I hold Emerging Markets and Europe on the grounds that these markets are a lot cheaper on a PE basis than other regions. The EuroStoxx index has a forward PE of around 13x at the moment, and the MSCI Emerging Markets index has a forward PE of 12x.

Emerging Markets is a long term story. I think the trade wars and geopolitics (Hong Kong etc) will be a short term drag but longer term, these markets have demographics on their side with much younger populations than developed countries. So I like your plan to drip feed into your chosen ETFs over a couple of years.

[ratkin]

I have Emerging Markets, Europe and US Value. Value stocks have been out of favour for years, but I expect them to be a more defensive holding than the US500 fund. I'm also hoping there'll be a big rotation away from growth and back to value at some point!

I hold Emerging Markets and Europe on the grounds that these markets are a lot cheaper on a PE basis than other regions. The EuroStoxx index has a forward PE of around 13x at the moment, and the MSCI Emerging Markets index has a forward PE of 12x.

Emerging Markets is a long term story. I think the trade wars and geopolitics (Hong Kong etc) will be a short term drag but longer term, these markets have demographics on their side with much younger populations than developed countries. So I like your plan to drip feed into your chosen ETFs over a couple of years.

My thoughts have been somewhat similar, did not want to diversify out of an overblown market into another one. Other thing with Europe is their currency has not been as strong as the dollar so get a bit better value. There probably good reasons why Europe P/E is much less, but feel more comfortable investing there. Already have a solid hilding in MFF which has quite a bit of exposure to the states, so I guess emerging markets makes some sense.

[blobbles]

With the rise of gold and likely more to come with a whole bunch of uncertainty, why not a gold ETF? I have been looking at Perth Mint gold ETFs recently, might have to do some drip feeding in myself...

I really think a hard Brexit in a couple of months may be the tipping point. It seems like everything now is like a jenga game with a top heavy market now stacked to over flowing. When the Brexit block gets pulled out from the bottom...

[heisenberg]

Now could be a good time for the SmartShares robotics and automation ETF... robots don’t get viruses

[clip]

Now could be a good time for the SmartShares robotics and automation ETF... robots don’t get viruses

I'm of the same opinion and have been buying. Copy paste my post from the positive effects of covid thread:

https://edition.cnn.com/2020/04/07/b...ion/index.html

I'm not sure if index fund threads are kept somewhere else on the forum, but potentially good news for the Global Robotics and Automation Fund later in the year (BOT), a few excerpts from the article:

"Brain Corp., which supplies autonomous floor-scrubbing robots to grocers, said it saw a 13% jump in the usage of its robots at stores in March compared to a year ago. Grocers staying open during the crisis have shortened their hours to allow for deep cleaning overnight.

Walmart (WMT), the country's largest retailer and private employer, will have Brain Corp's self-driving robots in 1,860 of its more than 4,700 US stores by the end of the year. It will also have robots that scan shelf inventory at 1,000 stores and bots at 1,700 stores that automatically scan boxes as they come off delivery trucks and sort them by department onto conveyer belts by the end of the year."

"At a handful of Schnucks Markets stores in the Midwest, Tally, an autonomous robot, scans shelves to alert employees when products are out of stock or labeled incorrectly, said Brad Bogolea, CEO of Simbe Robotics, which developed the robot.
"This massive surge in demand was a major shock to most retailers' inventory counts," said Bogolea. The robot has been helping workers restock items on shelves by giving them real-time data on which items are out, he said."

[DoctorG]

I set up a smartshare account yesterday, now thinking about what to invest in and whether to drop all the money in at once or drip feed it over months.

[Chickens]

I have ordered some of the new SmartShare Core ETFs - NZG, which is similar to the existing FNZ (NZX50 ETF)

The new Core Series of SmartShares (https://smartshares.co.nz/types-of-funds#core-series) are scheduled to be launched on 15 July.

Is anyone else participating in the introductory (no setup fees) offer?

[blackcap]

I have ordered some of the new SmartShare Core ETFs - NZG, which is similar to the existing FNZ (NZX50 ETF)

The new Core Series of SmartShares (https://smartshares.co.nz/types-of-funds#core-series) are scheduled to be launched on 15 July.

Is anyone else participating in the introductory (no setup fees) offer?

If you buy Smartshares through Sharesies there are no fees or brokerage either.

[Benny1]

I have ordered some of the new SmartShare Core ETFs - NZG, which is similar to the existing FNZ (NZX50 ETF)

The new Core Series of SmartShares (https://smartshares.co.nz/types-of-funds#core-series) are scheduled to be launched on 15 July.

Is anyone else participating in the introductory (no setup fees) offer?

Yep I'm in for some NZG and the new Ozzy top 200.

[Phant]

Re FNZ I am still trying to understand the underperformance vs NZ50. Presume it's a factor of the FNZ while supposedly mimicking the Index being hamstrung by the Index being supported mainly by 3 or 4 shares

[Tronald Dump]

FNZ tracks the S&PNZX 50 Portfolio Index which caps individual stocks at 5%. As a result the fund is very underweight FPH and ATM, and overweight smaller and mid cap stocks. Over recent months the massive performance of FPH and ATM has led to a big difference between the Portfolio index and the NZX 50 Gross Index.

[Onion]

If you buy Smartshares through Sharesies there are no fees or brokerage either.

Same for InvestNow (no fees, brokerage); higher minimum investment than Sharesies.

But they may not have those new funds initially.

[blackcap]

FNZ tracks the S&PNZX 50 Portfolio Index which caps individual stocks at 5%. As a result the fund is very underweight FPH and ATM, and overweight smaller and mid cap stocks. Over recent months the massive performance of FPH and ATM has led to a big difference between the Portfolio index and the NZX 50 Gross Index.

You got it in one. I phoned Smartshares a while ago and they explained in depth their methodology. I did know from 10-15 years ago that FNZ had a 5% cap but it had slipped my mind. But that is the reason it has under performed. That said over time things should revert to the mean....

[Pipi]

I now buy my NZ50 through Simplicity, they charge less management fees. I buy TWF and OZY through Investnow. But the OZY is OZ top 20, so would be interested in the one that covers 200 companies, more diversity.

[blackcap]

I now buy my NZ50 through Simplicity, they charge less management fees. I buy TWF and OZY through Investnow. But the OZY is OZ top 20, so would be interested in the one that covers 200 companies, more diversity.

Vanguard, (you can buy them on the ASX) have a whole range of different funds. Not sure if they have an ALL Ords but surely they would have one better than just OZY. I too found OZY too restrictive in just 20 top Aussie stocks.

[Snow Leopard]

I have ordered some of the new SmartShare Core ETFs - NZG, which is similar to the existing FNZ (NZX50 ETF)

The new Core Series of SmartShares (https://smartshares.co.nz/types-of-funds#core-series) are scheduled to be launched on 15 July.

Is anyone else participating in the introductory (no setup fees) offer?

More Smartshare ETFs ! :scared:

The way the NZX is going it will consist entirely of ETFs !! :t_down:

[traineeinvestor]

Vanguard, (you can buy them on the ASX) have a whole range of different funds. Not sure if they have an ALL Ords but surely they would have one better than just OZY. I too found OZY too restrictive in just 20 top Aussie stocks.

VAS is the ticker for Vanguard's ASX 200 ETF. IOZ is for Blackrock's ASX200 iShares ETF.

[blackcap]

More Smartshare ETFs ! :scared:

The way the NZX is going it will consist entirely of ETFs !! :t_down:

haha I know what you mean. To be fair though, I think just recently the money in passive funds is as much as that in active funds. So there is a place for them. And to have them listed is an additional benefit to the investor.

[Tronald Dump]

More Smartshare ETFs ! :scared:

The way the NZX is going it will consist entirely of ETFs !! :t_down:

For context there are approx. 720 unlisted managed funds in NZ! In the US, there are approx. 2000 listed ETFs and a total of around 4000 listed companies (so ETFs are ~33% of the market). There will be 35 Smartshares ETFs after these new funds are launched and there are 130 listed companies, so in NZ ETFs are ~21% of the market.

[Pipi]

Vanguard, (you can buy them on the ASX) have a whole range of different funds. Not sure if they have an ALL Ords but surely they would have one better than just OZY. I too found OZY too restrictive in just 20 top Aussie stocks.

Yes 20 companies for a country the size of Australia is not much. Thanks for the info.

[Felonius]

For context there are approx. 720 unlisted managed funds in NZ! In the US, there are approx. 2000 listed ETFs and a total of around 4000 listed companies (so ETFs are ~33% of the market). There will be 35 Smartshares ETFs after these new funds are launched and there are 130 listed companies, so in NZ ETFs are ~21% of the market.

Bump .. this is a thread worth maintaining.
So far I have not invested in any ETFs but research suggest they outperform most fund managers.

[blackcap]

For some good research.. SPIVA is the bible of funds.

https://us.spindices.com/spiva/#/reports/regions

[ratkin]

I set up a smartshare account yesterday, now thinking about what to invest in and whether to drop all the money in at once or drip feed it over months.

I drip mine in every month, though it is amazing how often the prices all seem to rise around the time it is dripped in.
European shares is the main one, as felt the prices of European stocks were a little less stretched

[Panda-NZ-]

The currency stuff is slightly annoying with these ETFs. I wish they had more hedged funds.

[Tronald Dump]

The currency stuff is slightly annoying with these ETFs. I wish they had more hedged funds.

They've just listed a new Total World (NZD Hedged) ETF today.

[Panda-NZ-]

I hope there is more to come . I like the lower fee stuff that has also been launched :)

[zgnz]

Surprised they haven't added a general Nasdaq/QQQ tracked fund yet. Considering they have a few niche thematic ones already.

[sonny n share]

The new Smartshares S&P/NZX 50 (NZG) (http://investnow.co.nz/fund-smartshares/) is 0.20% fee via Investnow and smartshares,
It is 0.49% via superlife

https://www.goodreturns.co.nz/article/976517175/core-portfolio-for-just-27-and-a-half-basis-points.html

https://smartshares.co.nz/types-of-funds/new-zealand-shares/nzg

https://www.superlife.co.nz/investment/all-funds-and-fees

[blackcap]

The new Smartshares S&P/NZX 50 (NZG) (http://investnow.co.nz/fund-smartshares/) is 0.20% fee via Investnow and smartshares,
It is 0.49% via superlife

https://www.goodreturns.co.nz/article/976517175/core-portfolio-for-just-27-and-a-half-basis-points.html

How can it be 0.49% via superlife and cheaper elsewhere? That does not really make sense. Unless superlife somehow charge an additional fee for being a superlife client? Seems bizarre.

Normally the fee for the ETF is fixed at a set rate and it does not matter where I buy the ETF. If I purchase it via Direct Broking I get charge a brokerage fee for the trade, but the fund fee will be the same as if I purchased it via Sharesies, or somewhere else. I do not get why it would be more expensive via Superlife.

[Jaa]

Can someone please tell me what is the difference between FNZ and NZG? They both track the S&P/NZX 50 Index but the first charges 0.5% and the second 0.2%? Why not just lower the fees of FNZ?

Is this just the old ASB trick of making a savings account less attractive over time and every few years releasing a new, competitive account to attract new money/clients? Tax on those not paying or unable to pay attention in other words. Bad for customers, unfair, unethical and a terrible way to run a business for the long term in my opinion.

[Panda-NZ-]

At first glance the 0.2 one doesn't cap individual holdings at 5% . Not sure on that though.

[BreaKerNZ]

NZG is based on a company's market cap, F&P make up 17.5% of the fund for instance. FNZ is capped at 5%

[Jaa]

Thanks, seems you are both right based on the holdings for each ETF. Bizarre.

How does that justify 60% less in fees though?

[Cyclical]

How can it be 0.49% via superlife and cheaper elsewhere? That does not really make sense. Unless superlife somehow charge an additional fee for being a superlife client? Seems bizarre.

Normally the fee for the ETF is fixed at a set rate and it does not matter where I buy the ETF. If I purchase it via Direct Broking I get charge a brokerage fee for the trade, but the fund fee will be the same as if I purchased it via Sharesies, or somewhere else. I do not get why it would be more expensive via Superlife.

That is odd isn't it, especially given that Superlife and Smartshares are both part of the NZX group. Maybe it's just an error in the system somewhere? I've got intention to move my Kiwisaver to Superlife at some point and throw it at an ETF or two, but I'm less keen if these fees are up there for no apparent reason...maybe I should pop them an email.

[Panda-NZ-]

The govt bonds fund look good (NGB). 0.2% v 0.45 for nzb and probably safer than cash?

[voltage]

and Simplicity have their own NZG for 0.1% and a NZ Bond fund for 0.1% plus $30 fee per year. No buying and selling fee.

[Tronald Dump]

and Simplicity have their own NZG for 0.1% and a NZ Bond fund for 0.1% plus $30 fee per year. No buying and selling fee.

So for the minimum $1,000 investment Simplicity charges a 2.1% annual fee (0.1% management fee plus $20 p.a. member fee). On a $5,000 investment Simplicity charges a 0.6% annual fee. For a $10,000 investment Simplicity's annual fee is 0.21%.

Also note the benchmark Simplicity uses only has ~40 stocks, not 50. Fine if that's what you want, but you'll miss the early gains of the next smaller growth companies like Xero and A2 when they come into NZX50 index. Also note according to its last fund update (to 31 March 2020) Simplicity underperformed its index by 0.24% before fees and tax over 12 months. Fees are important but they aren't everything.

[ratkin]

I am in one of the world bond ones, the one that started in 2019, not quite sure if that better or worse than the one they started in 2015 ( forgotten codes and not at computer)
The NZ one is it not better just to buy the bonds yourself? Although if drip feeding I guess the fund is easier

[Panda-NZ-]

Happy to pay the higher fees on the kiwisaver portion of superlife. I'd put a bit more in to the "invest" side if there was a better reduction in those fees.

[Cyclical]

Happy to pay the higher fees on the kiwisaver portion of superlife.

Why is that? IE why are you happy about it and how do you think they justify it? Genuine questions and there may well be good reasons, like maybe KS comes with more administrative and governance overhead, I don't know. Cheers.

[Panda-NZ-]

Customisation that is excellent among kiwisaver providers (40 custom funds/etfs) and detailed annual tax statements.

It is also NZ-owned unlike most of the others.

[blackcap]

Customisation that is excellent among kiwisaver providers (40 custom funds) and very detailed annual tax statements.

So you would be happy to pay higher fees just for those 2 reasons? Seems bizarre.

[Panda-NZ-]

Yep. I look at the underlying unit pricing for each of the funds and switch to ones that may be undervalued/have better growth prospects .everyone has their own preferences from their KS though. Without this it would be simplicity and I have pointed others I know in that direction esp those who are with banks .

[Panda-NZ-]

In the dark arts of finance there are interesting geared funds which may soon be coming up. :p

I wonder if sharesies will have access to the "TQQQ" fund when they bring their US range here when they add hundreds more to their options.

[sam green]

anyone investing in gold via ETFs?

[justakiwi]

What advantages are there in going with USF over TWF? Currently hold USF but TWF is much cheaper. I realise USF is US companies only, but from what I can see they seem to perform fairly similarly.

Would be interested to see people’s reasons for choosing one or the other?

[GTM 3442]

anyone investing in gold via ETFs?


Trading palladium with ZPAL in Switzerland.

[nztx]

haha I know what you mean. To be fair though, I think just recently the money in passive funds is as much as that in active funds. So there is a place for them. And to have them listed is an additional benefit to the investor.


If you do a few eliminations - taking out ETF's basically removes one of the two Share columns in NZH
say that's the right side gone..

Eliminate more of the non performers & down on their luck from the single column
of starters & runners left - you would be lucky to have 30-40 worth even looking at .. ;)

Just as well NZX get to bury their market pages in all the Fund & ETF listings, as what has been
evolving would be otherwise very very tellingly obvious for all to see .. ;)

From this, we then know why the band of 'worth looking at' remaining have been adding lots
height in recent weeks/months .. as the 'yield seeking new money has been piling in .. ;)

Think this is the end of it -- then dont be fooled or mistaken .. ;)

Still large piles of Loot to come in off the likes of Bonus Bonds repaying their holders and
a fair quotient of further fixed deposit money maturing, looking for a better yielding home .. ;)

[Snow Leopard]

According to the NZX there are 17,299,842 units of NZG on issue and yet today there was a single trade for

17,966,223 :confused:

Exhibit A:
12238

Definitely a slightly weird occurrence.