Updated Reviewed quarterly
IWM vs USS: ETF Comparison
IWM · iShares
TER 0.19% · Yield 0.9%
USS · Smartshares
TER 0.51% · Yield 0.8%
USS is a NZX-listed PIE fund (capped at 28% PIR, FIF-exempt). IWM is US-listed and triggers FIF tax once your overseas-share holdings exceed NZ$50,000 cost-basis, plus 15% US withholding tax on dividends. The trade-off is headline TER (IWM often cheaper) vs NZ tax simplicity (USS cleaner).
In 30 seconds: IWM (iShares Russell 2000 ETF, iShares) trades on the NYSE Arca at 0.19% TER. USS (Smartshares US Small Cap ETF, Smartshares) trades on the NZX at 0.51% TER. USS is a NZX-listed PIE fund (capped at 28% PIR, FIF-exempt). IWM is US-listed and triggers FIF tax once your overseas-share holdings exceed NZ$50,000 cost-basis, plus 15% US withholding tax on dividends. The trade-off is headline TER (IWM often cheaper) vs NZ tax simplicity (USS cleaner).
- IWM: iShares Russell 2000 ETF — 0.19% TER, FIF above NZ$50K
- USS: Smartshares US Small Cap ETF — 0.51% TER, PIE (max 28% PIR)
- IWM yield: 0.9% (Quarterly)
- USS yield: 0.8% (Semi-annual)
- Cheaper TER: IWM
Head-to-head comparison
| Feature | IWM | USS |
|---|---|---|
| Fund | iShares Russell 2000 ETF | Smartshares US Small Cap ETF |
| Issuer | iShares | Smartshares |
| Exchange | NYSE Arca | NZX |
| Total expense ratio | 0.19% | 0.51% |
| Dividend yield (TTM) | 0.9% | 0.8% |
| Distribution frequency | Quarterly | Semi-annual |
| NZ tax wrapper | FIF above NZ$50K | PIE (max 28% PIR) |
Where to buy
IWM trades on the NYSE Arca — buy via Hatch, Stake, Sharesies, Tiger and Interactive Brokers. USS trades on the NZX — buy via any NZX broker (Sharesies, InvestNow, Invest Direct, ASB Securities). See all 11 NZ investment platforms compared.
Frequently asked questions
What is the difference between IWM and USS?▾
IWM (iShares Russell 2000 ETF) charges 0.19% TER vs USS (Smartshares US Small Cap ETF) at 0.51%. IWM is from iShares; USS is from Smartshares. USS is a NZX-listed PIE fund (capped at 28% PIR, FIF-exempt). IWM is US-listed and triggers FIF tax once your overseas-share holdings exceed NZ$50,000 cost-basis, plus 15% US withholding tax on dividends. The trade-off is headline TER (IWM often cheaper) vs NZ tax simplicity (USS cleaner).
Which has the lower fee, IWM or USS?▾
IWM is cheaper at 0.19% TER vs USS at 0.51% — a gap of 0.32 percentage points. Over 30 years on a NZ$50,000 portfolio at 7% pre-fee return, that fee gap compounds to roughly NZ32,708 of foregone wealth.
Which yields more, IWM or USS?▾
IWM trailing 12-month yield is 0.9%; USS is 0.8%. Headline yield is gross; after-tax outcome depends on your tax wrapper (FIF above NZ$50K for IWM, PIE (max 28% PIR) for USS).
Can NZ residents buy both IWM and USS?▾
Yes. IWM is available via Hatch, Stake, Sharesies, Tiger and Interactive Brokers. USS is available via any NZX broker (Sharesies, InvestNow, Invest Direct, ASB Securities).
How does NZ tax differ between IWM and USS?▾
IWM is FIF above NZ$50K. USS is PIE (max 28% PIR). The PIE-wrapped fund is simpler — no FIF return, no US withholding, capped at 28% PIR. See /tax/pie-vs-fif/ for the full mechanics.
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