Updated Reviewed quarterly
SPY ETF: S&P 500 Index Fund
TER0.09%·Yield (TTM)1.3%·DistributionQuarterly·NZ taxFIF (US-domiciled, > NZ$50K cost-basis)
The world's largest and most traded ETF, giving you exposure to 500 of America's biggest companies including Apple, Microsoft, Amazon, and NVIDIA.
SPY Key Stats (2026)
What is SPY ETF?
SPY (SPDR S&P 500 ETF Trust) is the world's first and largest exchange-traded fund, launched in 1993 by State Street Global Advisors. It tracks the S&P 500 Index, which represents the 500 largest publicly traded companies in the United States.
For New Zealand investors in 2026, SPY remains one of the most popular ways to gain exposure to the US stock market. When you buy one share of SPY, you're effectively buying a tiny slice of 500 companies including tech giants like Apple, Microsoft, Amazon, Alphabet (Google), and NVIDIA.
Why Kiwi Investors Choose SPY
- Instant diversification: Own 500 companies with one purchase
- High liquidity: Trade anytime during US market hours
- Low fees: 0.0945% expense ratio (among the lowest)[1]
- Proven track record: 30+ years of performance history
SPY Top 10 Holdings (2026)
| Company | Ticker | Weight |
|---|---|---|
| Apple Inc. | AAPL | 7.2% |
| Microsoft Corp. | MSFT | 6.8% |
| NVIDIA Corp. | NVDA | 5.5% |
| Amazon.com Inc. | AMZN | 4.2% |
| Alphabet Inc. (Class A) | GOOGL | 2.3% |
| Company | Ticker | Weight |
|---|---|---|
| Meta Platforms | META | 2.2% |
| Berkshire Hathaway | BRK.B | 1.8% |
| Tesla Inc. | TSLA | 1.6% |
| JPMorgan Chase | JPM | 1.4% |
| UnitedHealth Group | UNH | 1.3% |
Note: Holdings and weights are approximate and change regularly. Top 10 holdings represent approximately 34% of the fund.
How to Buy SPY ETF in New Zealand (2026)
Step 1: Choose a Platform
NZ investors can buy SPY through several US-market-capable platforms. See the full structured comparison further down the page — it lists every NZ-accessible broker that supports US shares with current per-trade fee + FX cost (verified against each platform's published rate card).
Step 2: Open and Fund Your Account
Account opening typically takes 1-3 business days. You'll need:
- NZ driver's licence or passport
- Proof of address (utility bill or bank statement)
- IRD number for tax reporting
- NZ bank account for deposits
Step 3: Convert NZD to USD
SPY trades in US dollars. Your platform will convert NZD to USD automatically. FX margins vary significantly between platforms — see the structured comparison below for the current FX margin on each NZ-accessible broker.
Step 4: Place Your Order
Search for ticker "SPY" and place a buy order. You can buy fractional shares on most platforms, so you don't need the full share price (approximately US$580-620 per share in early 2026).
Platforms to buy SPY in New Zealand
The structured platform-availability table further down this page lists every NZ-accessible broker that lists SPY — with per-trade fee, FX margin, and notes pulled from each platform's published rate card. For the full side-by-side platform comparison across all markets, visit the platform hub.
Full NZ platform comparisonSPY Tax Implications for NZ Investors
FIF Tax Rules Apply
As a foreign investment, SPY is subject to New Zealand's Foreign Investment Fund (FIF) tax rules. Here's what you need to know:
Fair Dividend Rate (FDR) Method
Most NZ investors use the FDR method, which taxes you on 5% of your opening balance each tax year, regardless of actual returns.
Example: If your SPY holdings are worth NZ$50,000 on 1 April 2026, your taxable income is $2,500 (5% x $50,000). At a 33% tax rate, you'd pay $825 in tax.
De Minimis Exemption
If your total foreign investments cost less than NZ$50,000, you may qualify for the de minimis exemption. However, you'll then pay tax on actual dividends received at your marginal tax rate.
Important: You must report FIF income in your annual tax return (IR3). Keep records of all purchases, sales, and dividends. Consider using tax software or an accountant familiar with FIF rules.
SPY vs Other S&P 500 ETFs
| ETF | Provider | Expense Ratio | AUM | Typical Use |
|---|---|---|---|---|
| SPY | State Street | 0.0945% | $550B | Liquidity, options trading |
| VOO | Vanguard | 0.03% | $450B | Lowest cost |
| IVV | iShares | 0.03% | $400B | Low cost alternative |
Verdict: While VOO and IVV have lower expense ratios, SPY offers superior liquidity and tighter bid-ask spreads. For most NZ investors, the difference is minimal. Choose based on your platform availability.
SPY ETF FAQs for NZ Investors
Can I buy SPY from New Zealand?
Yes, NZ investors can buy SPY through platforms like Hatch, Stake, Interactive Brokers, and Sharesies that provide access to US markets.
What is the minimum investment for SPY?
Most NZ platforms offer fractional shares, so you can invest with as little as $1. A full share of SPY costs approximately US$580-620 (January 2026).
Does SPY pay dividends?
Yes, SPY pays quarterly dividends, typically in March, June, September, and December. The current yield is approximately 1.3%. Dividends are paid in USD and subject to 15% US withholding tax (reduced from 30% under the NZ-US tax treaty).
Is SPY a good investment for 2026?
SPY provides diversified exposure to the US economy and has historically delivered strong long-term returns. However, past performance doesn't guarantee future results. Consider your investment goals, risk tolerance, and time horizon.
SPY vs individual stocks - which is better?
SPY offers instant diversification across 500 companies, reducing single-stock risk. For most investors, especially beginners, ETFs like SPY are a more prudent choice than picking individual stocks.
Sources
- [1]SPDR S&P 500 ETF Trust fact sheet — State Street Global Advisors (2026-04)
- [2]NZ–US Double Tax Agreement (Article 10 — Dividends) — Inland Revenue Department (NZ) (2026)
- [3]Foreign investment funds (FIF) — IR461 — Inland Revenue Department (NZ) (2026)
Related ETFs and Comparisons
VOO ETF Guide
Vanguard’s S&P 500 ETF — lower fees, ETF (not unit-trust) structure.
VTI ETF Guide
Vanguard Total US Stock Market — broader than S&P 500.
QQQ ETF Guide
Nasdaq-100, tech-heavy alternative to SPY.
SPY vs VOO
Same index, different fees and structure.
VTI vs VOO
Total market vs large-cap-only.
How to Buy US ETFs from NZ
Platforms, FX, FIF tax — the full walkthrough.
Explore SPY Platforms
Compare platforms available for buying SPY from New Zealand
Next typical distribution: June.SPY typically pays in Mar · Jun · Sep · Dec. Issuer sets the exact date — verify on the distribution calendar before relying on a payment date.
Platform availability
Where to buy SPY from New Zealand
Based on each platform's advertised market coverage and fee schedule. Verify with the platform before transacting — instrument coverage can change.
| Platform | Per-trade fee | FX | Min | Notes |
|---|---|---|---|---|
 Sharesies Sharesies | 1.9% per trade | 0.5% | NZ$0 | Beginners, fractional shares, mixing NZ + US ETFs |
 Hatch Hatch | US$3 per trade (≤300 shares) | 0.5% | NZ$0 (US$1 to invest) | NZ investors who want US-only ETFs (SPY, VOO, QQQ, SCHD, JEPI) |
 Stake Stake | US$0 trades | 0.70% | NZ$0 | Frequent US-share traders who hate per-trade fees |
 Interactive Brokers Interactive Brokers | From US$0.35 / trade (Tiered) or US$1 flat (Fixed) | ~0.002% (US$2 min) | US$0 | Larger portfolios, frequent traders, multi-market investors |
 Tiger Brokers Tiger Brokers | US$1.99 per US trade | 0.50% | NZ$0 | NZ investors who want NZ + US + Asian markets in one account |
 Jarden Direct Jarden Direct | NZ$29.90 per NZX trade | ~0.40% | NZ$0 | Larger NZX trades and global market access through one NZ broker |
 ASB Securities ASB Securities | NZ$30 per NZX trade | Bank rates (~1%) | NZ$0 (ASB customer) | Existing ASB customers wanting one login for banking + brokerage |
Showing 7 platforms that list this ETF. Full platform comparison: all 11 NZ brokers → · Full coverage matrix: availability matrix →
NZ tax treatment
How is SPY taxed for NZ investors?
SPY is US-domiciled. NZ investors apply Foreign Investment Fund rules once total overseas-share cost basis crosses the de-minimis threshold. Below it, only dividends are taxable.
The FIF de-minimis threshold is NZ$50,000 (source) of overseas-share cost basis. Below it, FIF rules do not apply and only dividends are taxable.
Most NZ retail investors use Fair Dividend Rate (FDR): deemed income = 5% × opening market value × your marginal rate. Comparative Value (CV) can be lower in flat or down years.
US dividends carry 15% (source) withholding under the NZ–US tax treaty (file W-8BEN; default rate without it is 30% (source) ). The withheld amount can be claimed as a foreign tax credit on your IR3.
FDR vs CV method → · PIE vs FIF comparison →
🧮 Model your own after-tax outcome
Mechanical NZ-tax calculator comparing PIE @ PIR vs FIF @ FDR vs FIF @ CV on your principal, assumed return, time horizon, PIR, and marginal rate. → Open the after-tax calculator
General information only — not personalised tax advice. Confirm your treatment with a registered NZ tax adviser before transacting.
Add up to 4 more tickers to compare TER · yield · distribution · NZ tax structure.
FAQ
Common questions about SPY
What is the SPY ETF?⌄
SPY is the SPDR S&P 500 ETF Trust, the world's largest and oldest ETF (launched 1993, ~US$550B AUM). It tracks the S&P 500 — the 500 largest publicly-traded US companies — giving instant diversified exposure to ~80% of the US equity market in a single trade.
Can NZ residents buy SPY?⌄
Yes. SPY is available to NZ residents via Hatch, Stake, Sharesies (US market), and Interactive Brokers. Once your foreign-investment cost base exceeds NZ$50,000, the Foreign Investment Fund (FIF) regime applies. File a W-8BEN with your broker to drop US dividend withholding from 30% to 15% under the NZ–US tax treaty.
SPY vs VOO — which is better for NZ investors?⌄
Both track the S&P 500. VOO charges 0.03% TER vs SPY 0.0945% — about 3× the fee. SPY has higher liquidity and tighter bid-ask spreads, which matters for traders. For buy-and-hold Kiwi investors, the lower fee on VOO usually wins. See our full SPY vs VOO comparison.
How are SPY dividends taxed in NZ?⌄
Quarterly distributions are subject to 15% US withholding tax (with a W-8BEN). The 15% can typically be claimed as a foreign tax credit on your IR3. Above NZ$50,000 cost base, FIF rules apply — most NZ investors use the FDR method (5% of opening market value). Consult IRD guidance or a registered tax adviser.
