There are far fewer unlisted index funds available from NZ fund managers. There are a huge number of ETFs available to Kiwis from exchanges in the US, NZ and beyond. You can invest in an unlisted index fund through a fund manager like Kernel Wealth.ĮTFs have the edge when it comes to choice. This means that how and where you can invest in each is different.Īs ETFs are listed on exchanges, you can buy in through share trading platforms like Sharesies, Stake, Hatch, or Tiger Brokers. One of the key ways ETFs differ is that they are traded on a stock exchange, while an unlisted index fund is not. They have the same benefits for many investors, but they are not technically the same.
Index funds and exchange-traded funds (ETFs) are similar and sometimes the terms are used interchangeably. Index funds are a popular investment product because they are naturally diversified, have low fees, and typically provide good returns for long-term investors. That means when you invest in an index fund, you are actually investing in the performance of a number of companies at once, unlike investing in shares. These funds match a market index by investing in the shares that make up that index. Examples of market indexes include the S&P 500 (an index of the 500 largest US-listed companies) and the NZX 50 (the 50 largest companies listed on New Zealand’s Exchange, or NZX). An index fund is one that tracks a particular financial index.
