Updated Reviewed monthly
Eight NZX-listed ETFs picked one per category — low-cost core, dividend, global wrapper, ESG, growth — all PIE-taxed, all FIF-free.
In 30 seconds: The best NZ ETF depends on what you're optimising for. For lowest-cost NZ exposure, NZ20 (Kernel) wins on TER. For broad NZ market exposure, FNZ (Smartshares) tracks the NZX 50. For global exposure inside a PIE wrapper, KGM (Kernel Global 100) and USF (Smartshares S&P 500) are the workhorses. DIV gives the highest NZ-listed dividend yield. Every pick on this page is PIE-taxed at your PIR (max 28%) and exempt from FIF rules.
One ETF per category. Full rationale + watch-outs below.
| Category | Ticker | Fund | Issuer | TER | Yield |
|---|---|---|---|---|---|
| Best low-cost NZ core | NZ20 | Kernel NZ 20 Fund |  Kernel Kernel | 0.29% | 3.2% |
| Best NZ-listed dividend income | DIV | Smartshares NZ Dividend ETF |  Smartshares Smartshares | 0.54% | 5.3% |
| Best broad NZ market | FNZ | Smartshares NZ Top 50 ETF | Smartshares Smartshares | 0.52% | 3.8% |
| Best NZ-PIE global wrapper | KGM | Kernel S&P Global 100 Fund | Kernel Kernel | 0.25% | — |
| Best NZ-PIE S&P 500 wrapper | USF | Smartshares US 500 ETF | Smartshares Smartshares | 0.34% | — |
| Best NZ property | NPF | Smartshares NZ Property ETF | Smartshares Smartshares | 0.54% | — |
| Best sustainable / ESG | ESG | Smartshares Global Sustainability Leaders ETF | Smartshares Smartshares | 0.59% | — |
| Best diversified growth fund | KGH | Kernel High Growth Fund | Kernel Kernel | 0.25% | 2.1% |
Best low-cost NZ core
TER
0.29%
Yield
3.2%
Cheapest NZ-equity index access on the NZX. Tracks the S&P/NZX 20 (NZ’s 20 largest companies) at one of the lowest expense ratios available to retail investors.
Suited to
Long-term NZ equity exposure where headline fee is the dominant decision factor.
Watch out for
NZ-only — pair with a global wrapper (KGM / USF) if you want full diversification.
Best NZ-listed dividend income
TER
0.54%
Yield
5.3%
Smartshares’ NZ Dividend ETF screens for the highest-yielding NZX-listed companies. PIE-taxed at PIR (max 28%) so distributions are simpler than US dividend funds.
Suited to
Income-focused investors who want a NZD-denominated, PIE-wrapped dividend stream.
Watch out for
Concentrated — about 15 holdings, NZ-only. Yield reflects local market; not directly comparable to SCHD/VYM yields.
Best broad NZ market
TER
0.52%
Yield
3.8%
Tracks the S&P/NZX 50 (the broader local index). Strong proxy for "the NZ market" with deeper diversification than NZ20.
Suited to
Investors who want broader NZ exposure than the top-20 names and are comfortable paying a slightly higher TER for it.
Watch out for
Top-heavy by index design — Fisher & Paykel Healthcare + a handful of large caps drive most of the weight.
Best NZ-PIE global wrapper
TER
0.25%
Kernel’s S&P Global 100 fund gives diversified global large-cap exposure in a NZ-PIE wrapper — no FIF, no US withholding admin, no FX on every purchase.
Suited to
Investors who want global equity exposure without crossing the NZ$50K FIF threshold or filing FIF returns.
Watch out for
Tracks 100 names vs the 500 in an S&P 500 ETF; sector mix differs from a pure US fund.
Best NZ-PIE S&P 500 wrapper
TER
0.34%
Smartshares US 500 ETF — S&P 500 exposure wrapped as a PIE. The simplest way to own the US market from NZ without FIF compliance.
Suited to
Investors who specifically want S&P 500 exposure and prefer NZ tax simplicity over the very lowest TER.
Watch out for
TER higher than direct VOO/SPLG (~0.34% vs 0.03%). The tax-and-admin saving usually outweighs this once your portfolio is above the FIF threshold.
Best NZ property
TER
0.54%
The only listed NZ commercial property ETF. Holds the major NZX-listed REITs (Goodman, Precinct, Kiwi Property, Argosy, Stride).
Suited to
Investors who want NZ property exposure without buying or managing direct real estate.
Watch out for
NZ REIT sector is small and rate-sensitive; expect higher volatility than broad NZ50 indices.
Best sustainable / ESG
TER
0.59%
Smartshares Global Sustainability Leaders tracks the MSCI World ESG Leaders index — global large-cap companies screened on ESG criteria. PIE-wrapped.
Suited to
Investors who want global equity exposure with an ESG screen and NZ-PIE tax treatment.
Watch out for
ESG screening is methodology-dependent; underlying holdings will differ from a pure MSCI World benchmark.
Best diversified growth fund
TER
0.25%
Yield
2.1%
Kernel’s actively-allocated growth multi-asset fund — combines NZ equity, global equity, and a small bond/cash sleeve in one NZX-listed PIE wrapper.
Suited to
Hands-off investors who want one-fund global diversification without picking individual NZ + global ETFs.
Watch out for
You give up control over the allocation. Cheaper than KiwiSaver growth funds but pricier than buying NZ20 + KGM directly.
Each pick is the best ETF for one specific category, not an overall ranking. The selection criteria are explicit and uniform: lowest total expense ratio within the category, NZX-listed, and NZ-PIE-eligible (so FIF rules do not apply). Yield is reported where the issuer publishes a trailing 12-month distribution figure; an em-dash means the issuer does not currently publish a yield for that fund.
We do not factor in past returns. Historical performance is a poor predictor of future returns, especially across short windows, and using it as a selector would create a recency-biased list. See the full methodology for the complete criteria, and the disclosure for our editorial independence policy.
For a first-time NZ investor, FNZ (Smartshares S&P/NZX 50) or NZ20 (Kernel S&P/NZX 20) are the most common starting points. Both give broad NZ equity exposure, are PIE-taxed (max 28% PIR, no FIF), and trade through every major NZ platform. NZ20 has the lower TER; FNZ has broader index coverage.
Smartshares NZ Dividend ETF (DIV) is the highest-yielding NZX-listed ETF in our universe, screening for high-yield NZ companies. Distributions are PIE-taxed at your PIR (max 28%), simpler than US dividend funds like SCHD or VYM that trigger FIF compliance above NZ$50K.
NZ-PIE ETFs are simpler administratively (no FIF, no US withholding paperwork, NZD-denominated, max 28% tax). US ETFs offer lower TER and more choice. For most NZ investors with portfolios under NZ$50K, the NZ-PIE option is the lower-friction default. Above that threshold the tax saving of staying in PIE wrappers usually outweighs the TER difference.
No — each pick is the best ETF for a specific category (low-cost core, dividend, global wrapper, ESG, etc.). The right pick depends on what you’re optimising for. Use the comparison table to see how all eight stack up on TER, yield, and tax wrapper.
Each category pick was selected against a fixed methodology: lowest TER within the category, NZ-PIE-eligible (so FIF rules do not apply), and listed on the NZX. See /methodology/ for the full criteria. Pricing and yield data is pulled monthly from issuer disclosures.
This page is reviewed monthly against the live NZX ETF universe. Last reviewed: 2026-05-25. If a cheaper or more category-appropriate fund launches, the relevant pick will rotate; we keep the old pick in the FAQ for one cycle so readers can track changes.
Yes. All eight picks are available on Sharesies, with a 1.9% transaction fee capped at NZ$25 on orders up to NZ$3K (lower above). Kernel funds (NZ20, KSC, KGM, KGH) can also be bought direct on Kernel with zero ticket fee. Smartshares funds are also commission-free on InvestNow.
