Glossary
What is an ETF?
Updated Reviewed quarterly
An ETF (Exchange Traded Fund) is a basket of investments — shares, bonds, gold, property — that trades on a stock exchange like a single share. Buy one unit and you own a slice of the entire basket. ETFs typically charge much lower fees than actively managed funds and are easy to buy through any retail brokerage.
For New Zealand investors, ETFs solve three problems at once: low fees (typically 0.05–0.55% per year), instant diversification (one trade gets you 50–500+ companies), and tax clarity when you choose NZ-domiciled PIE funds. Smartshares and Kernel run NZX-listed ETFs; Hatch, Stake, Sharesies and Interactive Brokers give access to US-listed ETFs like SPY, VOO and QQQ.
Where you’ll see this term