Kernel NZ-Based All PIE Since 2019 Kernel Wealth — NZ's low-fee index manager
Updated Reviewed monthly
Index funds, NZX-listed ETFs, and KiwiSaver — all NZ-domiciled PIE wrappers at 0.25% TER. The low-fee challenger to Smartshares.
In 30 seconds: Kernel Wealth is a New Zealand investment manager offering low-cost index funds, NZX-listed ETFs (NZ20, KSC, KGM, KGH), and KiwiSaver. All Kernel funds are NZ-domiciled Portfolio Investment Entities (PIE) — distributions are taxed at your Prescribed Investor Rate (max 28%) and Foreign Investment Fund (FIF) rules don't apply. Core funds sit at 0.25% TER (cheapest in NZ). Founded 2019. FMA-regulated.
- Issuer: Kernel Wealth Limited (FMA-regulated)
- Founded: 2019 — the low-fee NZ index challenger
- NZX-listed ETFs: NZ20, KSC, KGM, KGH
- TER on core funds: from 0.25% (per-fund TER varies; see table)
- Tax wrapper: All PIE (max 28% PIR), FIF-exempt
- KiwiSaver: Kernel KiwiSaver scheme (same underlying funds)
- Direct purchase: zero ticket fee on the Kernel platform · also on Sharesies, BNZ Direct Broking, Jarden Direct, ASB
What is Kernel Wealth?
Kernel is a New Zealand-based investment manager that launched in 2019 with a simple proposition: bring Vanguard-style passive index investing to NZ residents inside a Portfolio Investment Entity (PIE) tax wrapper.
The lineup is deliberately narrower than Smartshares — Kernel offers core indices (NZ20, Global 100, S&P 500) and a multi-asset growth fund (KGH), with an extended bond and managed range on the Kernel direct platform. The trade-off is fee level: Kernel funds start at 0.25% TER. That's roughly half what Smartshares charges on like-for-like NZX exposure.
Kernel is regulated by the Financial Markets Authority (FMA) of New Zealand. Funds are held in custody by a separate regulated custodian. The Kernel KiwiSaver scheme uses the same underlying index funds, so KiwiSaver members get the same TER inside a portable retirement wrapper.
NZX-listed Kernel funds
All four are PIE-taxed at your PIR. Per-fund TER shown in the cards below; see Kernel fees for the full schedule.
Kernel NZ 20 Fund
Yield 3.2% · Quarterly
Low-cost exposure to the top 20 NZ companies.
Kernel High Growth Fund
Yield 2.1% · Quarterly
Diversified global growth portfolio, NZ-domiciled PIE.
Kernel S&P/NZX 20 Fund
Cheapest NZX-Top-20 tracker on the market.
Kernel S&P Global 100 Fund
Top 100 global multinational companies, NZ-PIE.
Kernel also issues unlisted funds directly through the Kernel platform — bonds, REIT, S&P 500, and a Balanced multi-asset fund. See all Kernel funds for the complete list.
Kernel vs Smartshares
These are NZ's two major NZ-PIE ETF issuers. The headline trade-off: Kernel is cheaper on the funds it offers; Smartshares has the wider lineup (~36 funds vs Kernel's ~4 listed).
| Kernel | Smartshares | |
|---|---|---|
| Founded | 2019 | 1996 |
| Ownership | Independent | NZX Limited subsidiary |
| Lowest TER | 0.25% | ~0.34% |
| Listed NZX funds | 4 | ~21 |
| Sector / regional funds | — | Yes (property, ESG, Europe, Asia, EM) |
| KiwiSaver scheme | Kernel KiwiSaver | Smart KiwiSaver |
| Zero-fee direct platform | Yes | No (via InvestNow instead) |
Detailed comparison: Kernel vs Smartshares full breakdown.
How to buy Kernel funds
Kernel offers two routes: direct on its own platform, or via any NZX-participant broker for the listed tickers.
- Kernel direct — zero ticket fee, regular-investment plans from NZ$0 minimum after the initial NZ$100 deposit. Includes access to the extended (unlisted) fund range. The cheapest way to invest in Kernel funds.
- Sharesies — Kernel-listed tickers (NZ20, KSC, KGM, KGH) at standard 1.9% brokerage with a NZ$25 fee cap on NZ orders above NZ$1,316. Useful if you want NZ + AU + US in one account.
- BNZ Direct Broking, Jarden Direct, ASB Securities — traditional NZ brokers. Per-trade brokerage NZ$15–30. CHESS-style on-register custody available.
Frequently asked questions
What is Kernel Wealth? ▾
Kernel Wealth is a New Zealand-based investment manager offering low-cost NZ-domiciled index funds, ETFs listed on the NZX, and a KiwiSaver scheme. Founded in 2019, it sits in the same NZ-PIE index-fund space as Smartshares but with a more focused, lower-fee lineup.
How much does Kernel cost? ▾
Kernel's core NZX-listed funds (NZ20, KGM, KSC, KGH) sit between 0.25% and 0.29% TER — see the table below for the per-fund figure. Buying direct on the Kernel platform incurs zero ticket fee. There is a minimum NZ$100 to open an account but no ongoing platform fee on top of the fund TER.
How many Kernel funds are there? ▾
Kernel issues 4 NZX-listed funds (NZ20, KSC, KGM, KGH) plus an extended range available direct on the Kernel platform — including bonds, REITs, and a managed-fund range. All are NZ Portfolio Investment Entities (PIE).
Is Kernel Wealth safe? ▾
Kernel is regulated by the Financial Markets Authority (FMA) of New Zealand and licensed under the Financial Markets Conduct Act 2013. The underlying funds are held in custody by a separate, regulated custodian. Investor funds are segregated from Kernel's own balance sheet.
Kernel vs Smartshares? ▾
Both are NZ-PIE ETF issuers. Kernel is cheaper on the funds it offers (lowest TER 0.25%); Smartshares has the wider lineup (~36 funds covering sectors, regions, dividend strategies Kernel doesn't offer). For core NZ + global at lowest cost: Kernel. For sector / regional / dividend / property: Smartshares.
Does Kernel offer KiwiSaver? ▾
Yes — Kernel KiwiSaver is a separate scheme built on Kernel's underlying index funds. Fees from 0.25% TER (cheaper than most mainstream NZ KiwiSaver providers). PIE-taxed by default.
Where can I buy Kernel funds? ▾
Direct on the Kernel platform (zero ticket fee). The NZX-listed tickers (NZ20, KSC, KGM, KGH) are also available on Sharesies, BNZ Direct Broking, Jarden Direct and ASB Securities.
What are Kernel's flagship funds? ▾
NZ20 (S&P/NZX 20 — top 20 NZ companies), KGM (S&P Global 100 — 100 largest companies globally), KSC (Kernel's alternative S&P/NZX 20 wrapper), and KGH (High Growth multi-asset). All four are NZX-listed and PIE-taxed.
