You can invest in exchange-traded funds (ETFs) and managed funds on Sharesies.Start investing
An exchange-traded fund (ETF) is a fund made up of a group of companies. You’re not buying shares in one company but in a whole lot of companies. For example, the NZ Top 50 is made up of the top 50 companies in New Zealand. You can own a piece of every one of them by investing in that fund.
What are the benefits?
- Diversification — you might have heard the advice ‘don’t put all your eggs in one basket’. When you invest in an ETF, you own a piece of a range of assets, instead of just one company.
- Accessibility — ETFs open the share market up to a wider audience. They allow people with lower amounts of money to access the same investments as private portfolio clients. They also give access to international investments that can otherwise be difficult.
- Lower fees — ETFs tend to have lower fees than other types of investments. In New Zealand they have tax benefits for many as well.
- Transparency — you get to see the prices move while the market is trading.
- Liquidity — because they’re traded on an exchange, you can sell your ETFs whenever there are interested buyers.
Sharesies doesn’t charge any fees on ETF investments. There are management fees charged by the provider and these are included in the price. These range from 0.33% to 0.95% of the value of your investment. Before you invest check the fund info.
ETFs available on Sharesies
These are a bit like ETFs except they don’t trade on an exchange. You either have to buy them directly from the fund provider, or through a company like Sharesies.
What are the benefits?
- They are managed—there’s a person behind the fund doing calculations, balancing the investments, trying to meet an investment strategy.
- Diversification — you might have heard the advice ‘don’t put all your eggs in one basket’. When you invest in a managed fund you own a piece of a range of assets, instead of just one company.
- Tax—the amount of tax you pay is based on the Prescribed Investor Rate (PIR) that you set in Sharesies, making these suitable for kids.
Managed fund fees
Sharesies doesn’t charge you fees on managed funds. There are annual management fees charged by the provider, and sometimes fees when you buy or sell investments. These are included in the price. Before you invest check the fund info.