Quote Originally Posted by voltage View Post
I am still confused with this. Simplicity and Smartshares offer NZ top 50 funds. Simplicity has a management fee of 0.1% cf 0.5% for smart shares. But the funds use different indices. Smartshares use the portfolio index which limits any company to 5% of total holding. Which would you recommend?
It all depends on your risk profile and what you the investor want. You cannot say one is better than the other (fees excluded). NZ50 from smartshares will be more concentrated to lower cap stocks whilst the Simplicity one will have a greater range in its stocks. If you want accurate reflection of the index then the Simplicity one is for you. If you want the bigger stocks capped (meaning smaller stocks will be overweight) then the NZ50 from Smartshares is for you.