What is the difference between KGH and FNZ?

KGH (Kernel High Growth Fund) is a multi-asset, globally-diversified fund holding NZ equity, global equity, and a small bond/cash sleeve at 0.25% TER. FNZ (Smartshares NZ Top 50 ETF) is a pure NZ-equity index fund at 0.52% TER. KGH is a one-fund global solution; FNZ is a single-country building block. Both are PIE-taxed.

Which is cheaper, KGH or FNZ?

KGH is cheaper at 0.25% TER vs FNZ at 0.52% — even though KGH gives you globally-diversified multi-asset exposure and FNZ gives single-country exposure.

Is KGH a substitute for FNZ?

Only partially. KGH already includes NZ equity inside its multi-asset mix (typically 15–25% of the portfolio). If you buy KGH, you already have NZ exposure built in. Holding FNZ as well would tilt your portfolio further towards NZ.

Where can I buy KGH and FNZ?

Both trade on the NZX. KGH is available zero-ticket-fee on Kernel direct. FNZ is zero-commission on InvestNow. Sharesies and BNZ Direct Broking list both.

KGH or FNZ for a hands-off investor?

KGH suits hands-off investors who want a single globally-diversified fund and don't want to construct their own NZ + global allocation. FNZ suits investors who already have global exposure (e.g. KGM, USF) and want a dedicated NZ equity slice on top.

Updated 2026-05-25 Reviewed quarterly

KGH vs FNZ: One Fund or Two?

KGH · Kernel

TER 0.25% · Yield 2.1% · multi-asset global

FNZ · Smartshares

TER 0.52% · Yield 3.8% · NZ equity only

A different comparison: KGH is a one-stop globally-diversified growth fund. FNZ is a building block — pure NZ equity. They solve different problems.

In 30 seconds: KGH is a multi-asset growth fund holding NZ equity, global equity, and a small defensive sleeve at 0.25% TER — designed for investors who want a single globally-diversified holding. FNZ is a pure NZ Top 50 equity ETF at 0.52% TER — designed as a building block within a larger portfolio. Both are NZ-PIE, both NZX-listed. If you're choosing one fund and walking away, KGH gives more diversification. If you're building a portfolio piece-by-piece, FNZ is the NZ-equity slice.

KGH: Kernel High Growth — multi-asset, globally diversified, 0.25% TER
FNZ: Smartshares NZ Top 50 — single-country NZ equity, 0.52% TER
Both PIE-taxed at max 28% PIR
KGH is a one-fund solution; FNZ is a portfolio building block
Where to buy: Kernel direct (KGH zero-fee), InvestNow (FNZ zero-fee), Sharesies

Head-to-head comparison

Feature	KGH	FNZ
Fund	Kernel High Growth Fund	Smartshares NZ Top 50 ETF
Issuer	Kernel	Smartshares
Structure	Multi-asset (fund-of-funds)	Single-asset index ETF
Geographic exposure	Global (incl. NZ)	NZ only
Asset mix	~95% equities, small bond/cash sleeve	100% NZ equities
Total expense ratio	0.25%	0.52%
Dividend yield (TTM)	2.1%	3.8%
Tax wrapper	PIE	PIE
Rebalancing	Automatic (inside the fund)	You rebalance (if held alongside global)

These funds solve different problems

KGH is a complete-portfolio solution. Inside KGH you already get NZ equity, global equity, and a defensive sleeve — Kernel rebalances the allocation for you. If you hold KGH, you don't need to layer FNZ on top unless you specifically want to over-weight NZ.

FNZ is a building block. Most NZ investors who hold FNZ pair it with a global fund like KGM or USF. A common NZ portfolio shape is a minority weighting to FNZ (NZ-only) paired with a majority weighting to a global fund — you control the geographic split yourself rather than delegating to a multi-asset wrapper.

The fee comparison is interesting: KGH gives global diversification + multi-asset rebalancing at a lower TER than FNZ's single-country exposure. That's because KGH uses lower-cost underlying funds and benefits from Kernel's scale.

These are characteristics of each fund, not investment recommendations. Consult a licensed financial adviser about your specific circumstances.

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