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
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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
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....
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.
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.