Updated Reviewed quarterly
NZ20 vs FNZ: Two NZX Core-Equity Funds
NZ20 · Kernel
TER 0.25% · Yield — · Top 20 NZ
FNZ · Smartshares
TER 0.50% · Yield 3.2% · Top 50 NZ
Both are NZX-listed PIE funds tracking core NZ equity. The choice is between lower TER + tighter concentration (NZ20) and broader index + slightly higher fee (FNZ).
In 30 seconds: NZ20 (Kernel NZ 20 Fund) tracks the largest 20 companies on the NZX at 0.25% TER. FNZ (Smartshares NZ Top 50 ETF) tracks the broader S&P/NZX 50 index at 0.50% TER. Both are PIE-taxed (max 28% PIR), both FIF-exempt, both NZX-listed. The practical difference is breadth (50 holdings vs 20) and TER (FNZ is 0.25pp more expensive).
- NZ20: Kernel NZ 20 Fund — 0.25% TER, 20 holdings
- FNZ: Smartshares NZ Top 50 ETF — 0.50% TER, ~50 holdings
- Both PIE-taxed (max 28% PIR), no FIF compliance
- NZ20 dividend yield: n/a · FNZ: 3.2%
- Where to buy: Kernel direct (NZ20 zero-fee), InvestNow (FNZ zero-fee), Sharesies, Invest Direct
Head-to-head comparison
| Feature | NZ20 | FNZ |
|---|---|---|
| Fund | Kernel NZ 20 Fund | Smartshares NZ Top 50 ETF |
| Issuer | Kernel | Smartshares |
| Index | S&P/NZX 20 | S&P/NZX 50 |
| Approx. holdings | 20 | ~50 |
| Total expense ratio | 0.25% | 0.50% |
| Dividend yield (TTM) | — | 3.2% |
| Exchange | NZX | NZX |
| Tax wrapper | PIE | PIE |
| Zero-fee direct platform | Kernel | InvestNow |
What you get for the extra 0.25pp TER on FNZ
FNZ holds 30 more NZ companies than NZ20 — the mid-cap names sitting at positions 21–50 in the S&P/NZX 50. In practice, NZ's market is concentrated at the top: the largest 20 names account for roughly 80%+ of total NZ market cap. The 30 mid-cap names FNZ adds (the “tail” of the NZ50) sit at small individual weights but collectively give exposure to the broader NZ economy.
Whether that extra breadth is worth the higher TER comes down to two things: how diversified you want your single-fund NZ holding to be, and how much you value the mid-cap exposure. NZ20 is the cheapest NZ-equity index ETF available; FNZ is the most commonly-cited “buy the NZ market” index proxy.
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