WHAT ARE ETFs AND WHAT ARE THE ADVANTAGES?

EXCHANGE TRADED FUNDS

ETF (Exchange Traded Fund) is a financial asset traded on the stock exchange. It consists of several financial assets from the same assets class and seeks to replicate the performance of a given index, either fixed income or variable income.
ETFs are used on a large scale in the passive investment strategy because they are diversified and have lower management fees.
In New Zealand, ETFs are not capital gain taxed and some of them do not pay dividends since they are reinvested in their own units.
Examples of ETFs in NZX (New Zealand Exchange): Smart NZ Top 50 ETF (FNZ), Smart S&P/NZX ETF (NZG), Smart Australian Top 200 ETF (AUS), Smart US Equities ESG ETF (USA), etc.

BENEFITS

Advantages of ETFs for investors:

Greater simplicity.
Lower administration fees.
Lower risk.
Profitability in line with the market.
Low need for follow-up (or portfolio rotation)

See below the ETFs traded on NZX-New Zealand Exchange.

TOTAL WORLD ETFs:

TOTAL WORLD ETF (TWF)

The Smart Total World ETF invests in the Vanguard Total World Stock ETF, which is designed to track the return on the FTSE Global All Cap Index.
Expense ratio: 0.40% per year.

TOTAL WORLD (NZD HEDGED) ETF (TWH)

The Smart Total World (NZD Hedged) ETF invests in the Vanguard Total World Stock ETF, which is designed to track the return on the FTSE Global All Cap Index.
Expense ratio: 0.46% per year.

WORLD´s REGIONS ETFs:

EUROPE:

EUROPE EQUITIES ESG ETF (EUG)

The Smart Europe Equities ESG ETF invests in the iShares MSCI Europe ESG Screened UCITS ETF EUR (Acc), which is designed to track the return on the MSCI Europe ESG Screened Index.

Expense ratio: 0.55% per year.

EUROPE ETF (EUF)

The Smart Europe ETF invests in the Vanguard FTSE Europe ETF, which is designed to track the return on the FTSE Developed Europe All Cap Index.

Expense ratio: 0.55% per year.

AUSTRALIA:

AUSTRALIAN TOP 200 ETF (AUS)

The Smart Australian Top 200 ETF is designed to return of the S&P/ASX 200 Total Return Index (in NZD). The S&P/ASX 200 Index is made up of 200 of the largest companies listed on the ASX.
Expense ratio: 0.30% per year.

AUSTRALIAN EQUITIES ESG ETF (AUE)

The Smart Australian Equities ESG ETF invest all, or substantially all, of its assets in securities listed on the ASX 200 after applying screens for exposure to controversial weapons, civilian firearms, tobacco, thermal coal and oil sands. The ETF is designed to track the S&P/ASX 200 Fossil Fuel Screened (AUD) Index.
Expense ratio: 0.50% per year.

DEVELOPED WORLD:

GLOBAL EQUITIES ESG ETF (ESG)

The Smart Global Equities ESG ETF invests in the iShares Core MSCI World ex Australia ESG Leaders ETF, which aims to track the return on the MSCI World Ex Australia Custom ESG Leaders Index, before fees and expenses.

Expense ratio: 0.54% per year.

EMERGING MARKETS:

EMERGING MARKETS EQUITIES ESG ETF (EMG)

The Smart Emerging Markets Equities ESG ETF (EMG) invests in the iShares MSCI EM IMI ESG Screened UCITS ETF USD (Acc), which is designed to track the return on the MSCI EM IMI ESG Screened Index.
Expense ratio: 0.59% per year.

EMERGING MARKETS ETF (EMF)

The Smart Emerging Markets ETF invests in the Vanguard FTSE Emerging Markets ETF, which is designed to track the return on the FTSE Emerging Markets All Cap China A Inclusion Index.
Expense ratio: 0.59% per year.

JAPAN:

JAPAN EQUITIES ESG ETF (JPN)

The Smart Japan Equities ESG ETF invests in the iShares MSCI Japan ESG Screened UCITS ETF USD (Acc), which is designed to track the return on the MSCI Japan ESG Screened Index.
Expense ratio: 0.55% per year.

ASIA PACIFIC:

ASIA PACIFIC ETF (APA)

The Smart Asia Pacific ETF invests in the Vanguard FTSE Pacific ETF, which is designed to track the return on the FTSE Developed Asia Pacific All Cap Index.
Expense ratio: 0.55% per year.

UNITED STATES ETFs:

S&P 500 & ESG ETFs

US 500 ETF (USF)

The Smart US 500 ETF invests in the Vanguard S&P 500 ETF, which is designed to track the return on the S&P 500 Index.

Expense ratio: 0.34% per year.

US EQUITIES ESG ETF (USA)

The Smart US Equities ESG ETF invests in the iShares MSCI USA ESG Screened UCITS ETF USD (Acc), which is designed to track the return on the MSCI USA ESG Screened Index.
Expense ratio: 0.34% per year.

US 500 (NZD HEDGED) ETF (USH)

The Smart US 500 (NZD Hedged) ETF invests all, or substantially all, of its assets in the financial products listed on the S&P 500 Dynamic Hedged NZD Index and is designed to track this index.
Expense ratio: 0.38% per year.

VALUE & GROWTH ETFs

US LARGE VALUE ETF (USV)

The Smart US Large Value ETF invests in the Vanguard Value ETF, which is designed to track the return on the CRSP US Large Cap Value Index.

Expense ratio: 0.51% per year.

US LARGE GROWTH ETF (USG)

The Smart US Large Growth ETF invests in the Vanguard Growth ETF, which is designed to track the return on the CRSP US Large Cap Growth Index.

Expense ratio: 0.51% per year.

MID & SMALL CAP ETFs

US SMALL CAP ETF (USS)

The Smart US Small Cap ETF invests in the Vanguard Small Cap ETF, which is designed to track the return on the CRSP US Small Cap Index.

Expense ratio: 0.51% per year.

US MID CAP ETF (USM)

The Smart US Mid Cap ETF invests in the Vanguard Mid Cap ETF, which is designed to track the return on the CRSP US Mid Cap Index.

Expense ratio: 0.51% per year.

NEW ZEALAND ETFs:

NZ DIVIDEND ETF (DIV)

The Smart NZ Dividend ETF invests in financial products listed on the NZX Main Board and is designed to track the return on the S&P/NZX 50 High Dividend Index.

Expense ratio: 0.54% per year.

NZ MID CAP ETF (MDZ)

The Smart NZ Mid Cap ETF invests in financial products listed on the NZX Main Board and is designed to track the return on the S&P/NZX Mid Cap Index.

Expense ratio: 0.60% per year.

NZ TOP 50 ETF (FNZ)

The Smart NZ Top 50 ETF invests in financial products listed on the NZX Main Board and is designed to track the return on the S&P/NZX 50 Portfolio Index.

Expense ratio: 0.50% per year.

S&P/NZX 50 ETF (NZG)

The Smart S&P/NZX 50 ETF is designed to track the return on the S&P/NZX 50 Gross with Imputation Index

Expense ratio: 0.20% per year.

NZ PROPERTY ETF (NPF)

The Smart NZ Property ETF invests in property assets listed on the NZX Main Board and is designed to track the return on the S&P/NZX Real Estate Select Index

Expense ratio: 0.54% per year.

NZ TOP 10 ETF (TNZ) & S&P/NZX 20 ETF (NZT)

NZ TOP 10 ETF (TNZ)
The Smart NZ Top 10 ETF invests in financial products listed on the NZX Main Board and is designed to track the return on the S&P/NZX 10 Index.

Expense ratio: 0.60% per year.
S&P/NZX 20 ETF (NZT)
The Smart S&P/NZX 20 20 ETF invests in financial products listed on the NZX Main Board and is designed to track the return on the S&P/NZX 20 Gross with Imputation Index.

Expense ratio: 0.20% per year.

FIXED INCOME ETFs:

GLOBAL

GLOBAL BOND ETF (GBF)
The Smart Global Bond ETF invests in international fixed interest assets, with the objective of outperforming the Barclays Global Aggregate Index by 1% per annum over rolling 3-year periods, hedged against the New Zealand dollar.
Expense ratio: 0.54% per year.
GLOBAL GOVERNMENT BOND ETF (GGB)
The Smart Global Government Bond ETF invests all, or substantially all, of its assets in debt securities issued or guaranteed by overseas or New Zealand Governments. The ETF is designed to track the Bloomberg Global Aggregate Treasuries Total Return Index, hedged to the New Zealand dollar.
Expense ratio: 0.30% per year.
GLOBAL AGGREGATE BOND ETF (AGG)
The Smart Global Aggregate Bond ETF invests in the iShares Core Global Aggregate Bond UCITS ETF NZD Hedged (Acc), which is designed to track the return on the Bloomberg Barclays Global Aggregate Index hedged to the New Zealand dollar.
Expense ratio: 0.30% per year

NEW ZEALAND

NZ BOND ETF (NZB)
The Smarts NZ Bond ETF invests in New Zealand fixed interest assets, with the objective of outperforming the S&P/NZX A-Grade Corporate Bond Index over rolling 3-year periods.
Expense ratio: 0.54% per year.
S&P/NZX NZ GOVERNMENT BOND ETF (NGB)
The Smart S&P/NZX NZ Government Bond ETF is designed to track the return on the S&P/NZX NZ Government Bond Index.
Expense ratio: 0.20% per year.

THEMATICS ETFs:

TECHNOLOGY

AUTOMATION AND ROBOTICS ETF (BOT)
The Smart Automation and Robotics ETF (BOT) invests in the iShares Automation & Robotics UCITS ETF USD (Acc).
Expense ratio: 0.75% per year.

SMART US TECHNOLOGY ETF (UST)

The Smart US Technology (NZD Hedged) ETF (UST) invests in the iShares S&P 500 Information Technology Sector UCITS ETF USD (IUIT).

Expense ratio: 0.45% per year.

HEALTHCARE INNOVATION ETF (LIV)

The Smart Healthcare Innovation ETF (LIV) invests in the iShares Healthcare Innovation UCITS ETF USD (Acc).
Expense ratio: 0.75% per year.

AUSTRALIA ETFs:

AUSTRALIAN TOP 20 ETF (OZY)

The Smart Australian Top 20 ETF invests in financial products listed on the ASX and is designed to track the return on the S&P/ASX 20 Index.

Expense ratio: 0.60% per year.

AUS DIVIDEND ETF (ASD)

The Smart Australian Dividend ETF invests in financial products listed on the ASX and is designed to track the return on the S&P/ASX Dividend Opportunities Index.

Expense ratio: 0.54% per year.

AUS RESOURCES ETF (ASR)

The Smart Australian Resources ETF invests in financial products listed on the ASX and is designed to track the return on the S&P/ASX 200 Resources Index

Expense ratio: 0.54% per year.

AUS MID CAP ETF (MZY)

The Smart Australian Mid Cap ETF invests in financial products listed on the ASX and is designed to track the return on the S&P/ASX Mid Cap 50 Index.

Expense ratio: 0.54% per year.

AUS PROPERTY ETF (ASP)

The Smart Australian Property ETF invests in property assets listed on the ASX and is designed to track the return on the S&P/ASX 200 A-REIT Equal Weight Index.

Expense ratio: 0.54% per year.

AUS FINANCIALS ETF (ASF)

The Smart Australian Financials ETF invests in financial products listed on the ASX and is designed to track the return on the S&P/ASX 200 Financials Ex-A-REIT Index.

Expense ratio: 0.54% per year.

OTHER ASSET CLASSES ETFs:

PROPERTY & INFRASTRUCTURE

GLOBAL INFRASTRUCTURE ETF (INF)

The Smart Global Infrastructure ETF invest all, or substantially all, of its assets in the iShares Core FTSE Global Infrastructure (AUD Hedged) ETF or securities that are included in the FTSE Developed Core Infrastructure 50/50 Index. The ETF is designed to track the FTSE Developed Core Infrastructure 50/50 Index, hedged to the New Zealand dollar.
Expense ratio: 0.60% per year

GLOBAL PROPERTY ETF (GPR)
The Smart Global Property ETF invest all, or substantially all, of its assets in the iShares Core FTSE Global Property ex Australia (AUD Hedged) ETF or securities that are included in the FTSE EPRA/NAREIT Developed ex Australia Rental Index. The ETF is designed to track the FTSE EPRA/NAREIT Developed ex Australia Rental Index, hedged to the New Zealand dollar.

Expense ratio: 0.54% per year

CASH, GOLD & BITCOIN

CASH
The Smart NZ Cash ETF (NZC) invests in cash and cash equivalents, with the objective of outperforming the S&P/NZX Bank Bill 90-Day Index over rolling 1-year periods.
Expense ratio: 0.20% per year.

GOLD
The Smart Gold ETF (GLD) invests in the iShares Gold Trust (IAU) ETF.

Expense ratio: 0.55% per year.

BITCOIN

The Smart Bitcoin ETF (BTC) invests in the iShares Bitcoin Trust (IBIT) ETF.

Expense ratio: 0.55% per year.

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