Investing in international ETFs or index trackers

[paulke]

Hello folks

I'm new here, this is my first post so hello people.

I am new to investing in New Zealand and I'm having a bit of trouble finding the types of products I wish to invest in. I am looking for cost effective ways of investing in international ETFs and/or index trackers.

So far I have found NZX Smartshares that offer a selection of funds with exposure to the NZ and Australian markets. I have also found AMP WiNZ fund that allows investment in a world index tracker.

Both of these are all well and good but I am not really seeing the choice I would like. I would like to be able to invest in some of the more specific trackers available in the UK and the US.

Can anybody advise if this is possible for a NZ resident? Is it cost effective if I cant invest in NZ dollars locally and have to pay for currency exchange each time I invest (monthly) with a foreign entity?

Thanks in advance

Paul

[Lizard]

Hi Paul,
Since nobody else has responded, I will kick off with the little I know.

You are correct in that there are very few index trackers which trade in NZ currency. I think you would be able to buy most of the products you are interested in through a NZ broker, but you may find the brokerage costs are at the higher end of the scale. I'm not sure if it is possible to use the automatic monthly investment method from here for overseas products. I think you would be best to contact both a NZ broker and the ETF provider you are interested in to check what they suggest.

Anyway, welcome to ST.

[paulke]

Hi. Thanks for the info.

I had a look through the business pages of the Herald today and stopped on the stock market pages for the first time. I told you I am new to it! The only ETFs listed were the Smartshares MOZY, TENZ, etc and the AMP WiNZ funds. This confirms what I had discovered so far with google.

I suppose it is time I went to an investment advisor but I am very wary of using brokers, advisors or any agent that needs to make a living out of my saving and investment.

Time to bite the bullet. Thanks again.

[strayda]

Not NZ but in Australia you can invest in ishares, ETF listed index funds that track several overseas indices. Fees are very low...

Australian dollar is high now so its not great timing though...

[Deev8]

... in Australia you can invest in ishares, ETF listed index funds that track several overseas indices. Fees are very low... Australian dollar is high now so its not great timing though...

You've got that the wrong way around - buying into overseas markets when the Australian (and New Zealand) dollar is high is good news - you get more for your dollar.

If some time in the future the dollar falls, you are making a gain even if the particular overseas index stands still.