Best smartshare ETFs (in the current climate)

[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.