Which Index Fund to Invest In?

[AppleCrumble]

Index funds,etfs, mutual funds....
I'm looking for the index type fund I. E. Low cost passive fund. Does that not exist in nz?
What is smartshares?Superlife bought them recently so not sure what happened to these products?

[smpl]

Empirical evidence shows that Minimum Volatility strategies outperform over the long term.

This could be particularly important if you are considering investing in equities during these times.

[AppleCrumble]

As far as I understand it smartshares have 19ETFs see here:
https://nzx.com/companies/NZX/announcements/273297
listed on the NZX. (Note there is index linked funds which are similar to ETFs but slightly differernt which I am learning what the exact difference is)

So these are listed on the nzx so if i take one for example, the*nz-dividend*here:
http://smartshares.co.nz/types-of-fu...nd/nz-dividend
What is the best/cheapest way of buying this? Should I buy through a brokerage like ASB or should I open an account with smartshares?

For instance if I buy through ASB, the cost would be "0.3% with a minimum of NZ$30.00 per trade"
If I buy through smartshares can I avoid this ASB cost?*I'm thinking no but what do others think?

There is also a mgmt fee of 0.54% for this fund.But I probably would not see thi, that is I would just see the the return minus this fee.

So the long and short of it is should I buy through a broker (e.g. ASB) or apply directly through smartshares? Or is it much of a muchness. An interesting point made above is that if you buy through a broker you can see the number of units and the value whereas with smartshares (or superlife the example they gave) you would only see the value.

[AppleCrumble]

Also in relation to etfs and this etf in particular, the nz-dividend here:
http://smartshares.co.nz/types-of-fu...nd/nz-dividend

What happens the dividends?*Are they reinvested or can they be taken out as an Income, or to be reinvested elsewhere?

[peat]

As far as I understand it smartshares have 19ETFs see here:
https://nzx.com/companies/NZX/announcements/273297
listed on the NZX. (Note there is index linked funds which are similar to ETFs but slightly differernt which I am learning what the exact difference is)

So these are listed on the nzx so if i take one for example, the*nz-dividend*here:
http://smartshares.co.nz/types-of-fu...nd/nz-dividend
What is the best/cheapest way of buying this? Should I buy through a brokerage like ASB or should I open an account with smartshares?

For instance if I buy through ASB, the cost would be "0.3% with a minimum of NZ$30.00 per trade"
If I buy through smartshares can I avoid this ASB cost?*I'm thinking no but what do others think?

There is also a mgmt fee of 0.54% for this fund.But I probably would not see thi, that is I would just see the the return minus this fee.

So the long and short of it is should I buy through a broker (e.g. ASB) or apply directly through smartshares? Or is it much of a muchness. An interesting point made above is that if you buy through a broker you can see the number of units and the value whereas with smartshares (or superlife the example they gave) you would only see the value.

From the documents online




When Unitholders first subscribe for Units they will pay an application fee to the Manager, which will be

deducted from their Subscription Amount. For Subscription Amounts of less than $20,000 this will be a flat

fee of $30, and for Subscription Amounts equal to or greater than $20,000 the subscription fee will be 0.2%

of the full Subscription Amount. This fee is not payable for subsequent Cash Applications, subscriptions

under the Regular Savings Plan or the Distribution Reinvestment Plan





You can also add to your investment through the Distribution

Reinvestment Plan
– where your distributions are automatically reinvested as additional Smartshares Units

or you can choose to have your distributions paid directly to you by direct credit

[AppleCrumble]

Tks peat I always struggle to find what I want on their site.

[peat]

I use these via Rabobank.


Index Funds.JPG
The AMP one is not currency hedged, the others are although the Devon Divi is only NZ/Aussie stocks.
Fisher Funds Growth is the most volatile. They all seem to track well, as far as I can tell.
Fees aren't too bad, considering the retail features.

[Dean@Smartshares]

Hi there,

Differences between buying ETFs directly through Smartshares or buying on market are highlighted below:

Buying on market
You can trade on-market on any trading day and the price paid will depend on current supply and demand. Noting that there is a market maker in place providing liquidity at spreads around the NTA value. You can also set price limits this way. For example, you may only want to buy or sell if the unit value reaches to a certain price. Please be aware there will likely be a brokerage cost with the trade and this will be set by the broker you elect to use.

Buying direct from Smartshares
Applications are processed on a monthly basis, with all approved online applicants having their application amount direct debited from their bank account on the 20^th of the month. Units will be issued at the NTA price on or about the last business day of the month and the units will appear in your registry account on the 3^rd business day. You don’t have the flexibility to set a buy or sell price or decide what day to trade using this method, but the benefit is that after your first investment, there is no fees for ongoing investments.
Smartshares application fees are as follows:
· Initial $30 fee for a new fund investment - Peat, we amended our application fees in Sept 2016 to a flat $30 irrespective of application amount
· There are no application fees on any further lump sums into an existing fund holding, or on the regular savings plan function we offer
Ongoing management fees for the various funds can be found at http://smartshares.co.nz/fund-investor-report
Distributions from the ETFs are automatically set to reinvest as additional units. If you would like to receive the distribution as cash, you can elect this in your registry account by logging in at: http://www.linkmarketservices.co.nz/

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[Aaron]

Hi there,

· Initial $30 fee for a new fund investment - Peat, we amended our application fees in Sept 2016 to a flat $30 irrespective of application amount
· There are no application fees on any further lump sums into an existing fund holding, or on the regular savings plan function we offer
Ongoing management fees for the various funds can be found at http://smartshares.co.nz/fund-investor-report
Distributions from the ETFs are automatically set to reinvest as additional units. If you would like to receive the distribution as cash, you can elect this in your registry account by logging in at: http://www.linkmarketservices.co.nz/

---

Dear Dean

Thanks for the information.

Your fees I guess are .75% per annum but is this charged on the initial cost price of the investment or an NTA per unit at some given point in time each year?

[Dean@Smartshares]

Hi Aaron,

The management fees are calculated daily within the NTA value. The management fees vary by fund and the full list can be viewed here :

http://smartshares.co.nz/fund-investor-report