People with Hatch accounts can invest in a wide range of US-listed shares. I did find a renewable energy ETF on Hatch but Hatch does have some high fees as well.. Also a lot of people seem to be using investnow whereas I went straight to the Smartshares website. In saying that it is now built up close to the $10,000 mark. Yes it is for me. Now if you add the tax advantage for being under $50,000. Wait... Investnow means that you don't own the Smartshares? Overtime the benefit of Vanguard’s low fees will really payoff. Smartshares offers New Zealand's most extensive selection of ETFs, but other investment platforms like Hatch, Stake and Sharesies offer US-listed ETFs. ETF, ETFs, Hatch, Index Funds, Kernel, Money Education, Sharesies, SmartShares. With Hatch, you have lost $499 compared to the ROI without fees, and with InvestNow you have lost $4216.So in both cases, a magnitude change in expense ratio results (0.34% vs 0.03%) in a magnitude change in fees paid ($2053.20 vs $207.37), and a magnitude change in lost compounding ($4216 vs $499)- which makes … Best for investing in managed funds. Discuss savings, investments, KiwiSaver, debt management, home loans, student loans, insurance, and anything else personal finance-related. Hatch, Index Funds, Investment, Kids and Money, PocketSmith, Sharesies, Simplicity, SmartShares, ETF Christmas at my house when I was growing up was always a busy, crowded and fun time. Some of the Smartshares ETFs gain exposure to global markets by investing directly in an underlying fund. See the Stake/Hatch comparison here: https://old.reddit.com/r/PersonalFinanceNZ/comments/fy5cp1/stake_vs_hatch_fees_explained/fmz1y57/. Vanguard funds not available through InvestNow (eg VOO, VT, etc) are slightly cheaper over the long run to buy through Stake/Hatch. over $10,000), but is the most expensive for smaller trades. The price of an ETF goes up and down as the index it represents. Exchange Traded Funds (ETFs) are, in almost all cases, index funds, except investors buy and sell their holdings on a sharemarket. But the point about having a large tax advantage below $50,000 is important, as well as the fact you need a larger portfolio before Hatch’s brokering and FX fees being less than the management fee from Smartshares. We used to receive heaps of Christmas cards and the most exciting ones were the cards that contained the “annual Christmas letter” from the sender. Hatch charges .5% of the interbank FX fee. InvestNow and Smartshares complete trades in under 2 working days. Smartshares charges a $30 setup fee when you first apply, while annual management fees vary depending on the fund you choose and range from 0.20% to 0.75%. Looking through the past history of VOO about 25% of the years you’d be paying 0% tax on opening value, you can also run simulations using means and standard deviations of the historic index returns and get similar findings. Hatch customers can invest as soon as a new listing hits the share markets, allowing Kiwis to be among the first to benefit from the success of the world's most recognisable brands. A $1.50 USD fee is deducted from your first deposit to cover the filing of a compulsory US tax form on your behalf. Sharesies offers the lowest fees for share trades up to $3,000 given there's no minimum transaction fee. So yes, if you were going to put $500 to $1000 on an ETF, it would be cheaper through InvestNow given that’s all we are computing cost wise. Hatch account holders can buy and sell stocks listed on the New York Stock Exchange and the NASDAQ. ... Read our Comparing Sharesies vs Investnow vs Hatch and more guide. $248 / 0.34% gives us $73000 with rounding, so you need around $70,000 for Hatch to start to break even, excluding tax. If you want to invest in alternatives iShare funds than what’s on offer from Smartshares through Investnow, and SuperLife, and you had a large chunk of change to invest, I would suggest Hatch. I guess if I buy funds through Hatch or Stake, I will directly own the mutual fund as opposed to Smartshares which have a mutual fund product invested in Vanguard, say such as the S&P index based fund. For this example I will use the S&P 500. The difference is both in fees you paid and compound interest lost. Which is represented by Smartshares U500 (USF) on InvestNow and VOO on Hatch. (With some reasonable assumptions of course). Fund Platforms are a good option for everyone – both beginners and experts – as they allow you to invest in lots of different funds under one roof. InvestNow and Smartshares is cheaper for smaller portfolio’s, but Hatch is better for large portfolio’s where the broker and FX fees become relatively small. The Hatch option could be more cost-effective for investors who make fewer and/or higher value trades. Examples are the Smartshares US 500 ETF (investing in the United States), Smartshares Emerging Markets ETF (investing in emerging markets e.g. I’ve had a number of emails asking about the changes to Smartshares, in particular the introduction of their new S&P/NZX 50 ETF (NZG) and how it compares to their existing NZ Top 50 ETF (FNZ). US shares: Stake vs Hatch vs Sharesies; NZ shares: Sharesies vs InvestNow vs Smartshares; Launched in March 2017, InvestNow is an online investment platform based in New Zealand. If you had an opening value of $100, you are paying tax on $5 (5% through FDR), and will pay PIR x $5, which at 0.28% is $1.4. Press question mark to learn the rest of the keyboard shortcuts. Would it be better to buy US mutual funds through Hatch or Stake NZ instead? A 0.5% fee is included in our estimated exchange rate, and we offer special rates for deposits over $100k. Is speed an important factor when purchasing mutual funds? Should I be looking to move to investnow? You can buy shares in individual companies, as well as exchange-traded funds, that are listed on US stock exchanges.. Hatch offers shares in more than 2,900 individual companies, such as Amazon, Tesla and Disney and more than 500 exchange traded funds, which includes stock indexes … Our Thoughts on Hatch: While you pay $3 per trade, the FX fee is half what Stake charges (0.50% vs 1.00% - and no $2 minimum fee) which is a significant benefit. You would not the purchase transaction to go through after the NAV has increased substantially, say after many days or weeks? A quick note on Index fund fees. Although your shares will be held by a custodian instead. InvestNow and SmartShares dividend reinvest so you don't have to worry about it. Press J to jump to the feed. If you don't withdraw that money for at least two years, then you only pay 0.03% and pull ahead with Hatch by year three. Discuss savings, investments, KiwiSaver, debt management, home loans, student loans, insurance, and anything else personal finance-related. (https://www.smartshares.co.nz). Smartshares looks after all tax obligations for you, so you don't have to file a tax claim as you would if you owned any US shares directly. I am a long term buy and hold investor for the most part and have really enjoyed the no fee trading and find the no hassle app pretty intuitive. If you are under $50,000 in all foreign assets (not including those in PIE’s), you will be paying tax on dividends alone. Currently I use sharesies, and I believe they do not charge fees directly for these products, but I can't help but wonder if there is a better platform for buying and holding smartshares. InvestNow costs: 0.34% per annum, and you pay 28% on 5% of opening value as tax. SmartShares is slightly more expensive (<1% difference) than going through Hatch/Stake over the long term if SmartShares has the funds you are after, BUT you end up paying tax through PIE rather than FIF overseas tax rate, which is a lot easier for the average investor. For these ETFs, it is the underlying fund that contains a portfolio of securities designed to track a specific index. Hands down, InvestNow offers a lot more investment opportunities than Simplicity (3 funds) and Smartshares (40+ ETFs). Here is a helpful breakdown of Hatch v Stake that people much smarter than me put together: https://docs.google.com/spreadsheets/d/1mbCDBYvCpgHzrz24f9rc9P8tAiV1l08xHrdcA50dbFM/edit#gid=0, and here is my founders code if you want to check out stake: JENNIFERT982. They charge an admin fee, but have a nicer front end than NZX and are a little more flexible. Hatch: Hatch provides access to over 2,900 companies and more than 500 ETFs listed on US share markets. You will need to calculate things for yourself for your own investing situation. The dividend yield for VOO is about 2%, so you are paying 33% x 2% which is 0.66%, under half that you pay with Smartshares. New comments cannot be posted and votes cannot be cast, More posts from the PersonalFinanceNZ community. Will I earn dividends directly from owing a fund through Hatch or Stake? I can only speak from experience and I have been loving the ease of the stake platform. However my question is would I just be better of putting my 500 - 1k into a ETF on Smartshares instead? Hatch gives Kiwis easy access to the United States sharemarket, and with this access comes the opportunity to invest in 754different US domiciled ETFs!!! What happens if a fund platform shuts down? Let me assume for these calculations you are at the 33% tax bracket and your PIR is 28%. Yes you should invest through InvestNow if you plan on buying Smarshares ETFs when they are on Smartshares. It allows Kiwis to invest in more than 140 NZ and global managed funds online, plus provides access to … I'm a pretty new at all this but I've had some ETFs from Smartshares since the start of the year (nz50, emerging markets, us 500 and aus dividend). Can someone give an idea of fees if one was to invest $1000 or $5000 through either of these platforms, which will be quicker and if I will receive dividends too whenever these funds announce them? Or is that just for foreign ones? It created New Zealand’s first ETF (the NZ Top 10 Fund) in 1996. Hatch will cost you 0.53% (+$3) in the first year, vs. 0.34% for Smartshares. Overtime the benefit of Vanguard’s low fees will really payoff. Hi all, I'm investing exclusively on smartshares ETFs. If you’re doing a Sharesies vs InvestNow comparison, you’ll be interested to learn that both providers provide access to managed funds. The first having a fee of 0.5% and the second having a fee of 0.33, with the only difference being that the AMP fund tracks the NZ-50 index closely, whereas the Smartshares NZX-50 fund has a maximum weighted cap of 5% for individual companies making up the fund. Hatch, Index Funds, Investment, KiwiSaver, PocketSmith, Sharesies, Sharesight, Simplicity, SmartShares, ETF, Tax With so many new investment platforms coming on stream in the last couple of years, it has never been easier to buy a stake in a company via either an index fund or by buying individual shares. 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