We’ve added NZ Core Fund to Sharesies! This is a managed fund provided by Smartshares.
The NZ Core Fund invests across a range of large and small companies listed on the New Zealand Stock Exchange (NZX). It gives you access to the big brands you know, like Trade Me and Spark, plus increased access to smaller companies. The companies are chosen by Dimensional, an international investment manager. Dimensional analyses share prices, company size and other data to actively invest in companies that appear to be good value.
The NZ Core Fund is a managed fund. This means you don’t own shares in a particular company, but units in a fund that’s made up of a range of them. This helps keep your portfolio diversified—so you don’t have all your money riding on one company.
Why we’re adding this to Sharesies:
It offers NZ equities with tax rate options that are more suitable for most kids.
It also offers a broader range of high-value companies across different sizes—e.g. instead of just the top 50, or mid cap, you get big, medium, and small companies.
It’s a managed fund rather than an index, so has a person tracking it and selecting the companies you invest in.
Check out our blog for more info about the difference between a managed fund and exchange-traded fund (ETF).