Comparison · NZ-aware
Three US-listed funds (SPY, VOO, IVV) and one NZX-listed wrapper (Smartshares USF) all track the same 500 large-cap US companies. They differ in fee, liquidity, and — most importantly for Kiwis — NZ tax treatment.
Updated Reviewed quarterly
Editorial selection · No commercial relationship with any issuer · Sources
At a glance
Sorted by total expense ratio (cheapest first). Reviewed 2026-05-02.
| Ticker | Fund | Issuer | TER | Yield | Domicile | NZ tax |
|---|---|---|---|---|---|---|
| VOO | Vanguard S&P 500 ETF |  Vanguard Vanguard | 0.03% | 1.4% | US | FIF[5] |
| IVV | iShares Core S&P 500 ETF |  iShares iShares / BlackRock | 0.03% | 1.4% | US | FIF[5] |
| SPY | SPDR S&P 500 ETF Trust |  State Street State Street | 0.09% | 1.3% | US | FIF[5] |
| USF | Smartshares US 500 ETF |  Smartshares Smartshares | 0.34% | — | NZ | PIE[6] |
TER = Total Expense Ratio (annual fund fee). Yield = trailing-12-month distribution yield where reported by the issuer; "—" indicates yield not currently published. PIE = NZ Portfolio Investment Entity (PIR-taxed, no FIF). FIF = Foreign Investment Fund regime.
Per-fund profile
Vanguard VOO
Tied for the lowest TER in this comparison.
Below peer median
VOO charges 0.03% per year. At ~US$450B AUM[2] it's deeply liquid; NZ investors typically access it via Hatch, Stake, Sharesies (US), or Interactive Brokers. Vanguard is investor-owned, which historically aligns issuer incentives with low ongoing costs.
Full VOO profile →
iShares IVV
Same headline TER as VOO; from BlackRock's iShares range.
Below peer median
IVV matches VOO at 0.03% per year[3]. Same index, same near-zero tracking error in practice. Useful for investors who already hold other iShares funds and want to consolidate at one issuer; otherwise the choice between IVV and VOO is largely cosmetic.
State Street SPY
Highest liquidity; ~3× the headline fee of VOO/IVV.
Above peer median
SPY charges 0.09% per year — about 3× VOO and IVV[1]. Where SPY wins is liquidity: ~80M shares trade daily, the tightest bid-ask spread of any US ETF, and the deepest options market. That edge matters more for traders than for buy-and-hold Kiwi investors.
Full SPY profile →
Smartshares USF · NZX-listed
The PIE-taxed wrapper most Kiwis overlook.
Above peer median
USF charges 0.34% per year — higher than its US-listed siblings, but the structure is fundamentally different. As an NZ-domiciled PIE fund, tax is calculated by Smartshares at your Prescribed Investor Rate (capped at 28%), there's no FIF calculation, and you trade in NZD on the NZX[4][6]. For investors above the FIF threshold or paying the 33%/39% marginal rate, the higher TER may be offset by tax efficiency and NZD-denomination — work the maths or speak with an adviser.
Full USF profile →Fees compound
A 0.06% fee gap (VOO/IVV at 0.03% vs SPY at 0.09%) sounds trivial, but it compounds. The illustration below assumes 7% gross annual return, no contributions after the initial investment, fees deducted annually. It's an arithmetic projection, not a forecast — actual returns vary widely and can be negative.
NZ$100,000 invested for 30 years at an assumed 7% gross return
The 0.06% TER gap costs about NZ$12,000 over 30 years on this NZ$100,000 example. The gap widens with portfolio size and time horizon. Past performance is not indicative of future results; this is an arithmetic compound on stated assumptions.
Same index, different fee structure and trust type.
Account opening, FX conversion, FIF tax basics.
21 NZX-listed ETFs ranked cheapest first — including USF.
Hatch, Stake, Sharesies, IBKR, Smartshares-direct + 6 more.
Total US market vs S&P 500 — what you gain and lose.
TER, yield, holdings, and how to buy from NZ.
FAQ
VOO (Vanguard) and IVV (iShares) both charge 0.03% per year — the lowest in the category — while SPY (State Street) charges 0.0945%. On every NZ$10,000 invested that's about NZ$3 per year vs about NZ$9 per year. Same underlying index.
For most buy-and-hold Kiwi investors, no. SPY's edge — extreme liquidity and tight bid-ask spreads — matters most for high-volume traders and options users. Long-term holders typically save more by paying the lower 0.03% fee on VOO or IVV.
SPY, VOO, and IVV are US-domiciled ETFs subject to NZ Foreign Investment Fund (FIF) rules once your total foreign-investment cost basis exceeds NZ$50,000. Dividends are subject to 15% US withholding tax under the NZ–US tax treaty (with a W-8BEN form). The NZX-listed Smartshares US 500 (USF) is a PIE fund, capped at 28% tax with no FIF calculation.
Yes. Smartshares US 500 ETF (ticker USF) is NZX-listed, NZD-denominated, and PIE-taxed. Its TER is 0.34% — higher than the 0.03% on VOO or IVV — but the PIE tax structure can be advantageous if you are above the FIF threshold or pay the 33% / 39% marginal rate on other income.
SPY, VOO, and IVV are available via Hatch, Stake, Sharesies (US market), and Interactive Brokers. The NZX-listed Smartshares US 500 (USF) is available via Smartshares-direct, InvestNow, Sharesies (NZX market), and any NZX broker.