I'll be comparing them in terms of:1. Best for investing in managed funds. I can't attest to the quality of investment inside Smartshares, and whether they are riding the wave of global market growth vs really doing something. It allows Kiwis to invest in more than 140 NZ and global managed funds online, plus provides access to … A $1.50 USD fee is deducted from your first deposit to cover the filing of a compulsory US tax form on your behalf. ETF, ETFs, Hatch, Index Funds, Kernel, Money Education, Sharesies, SmartShares. 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. I can only speak from experience and I have been loving the ease of the stake platform. If you had over $50,000 you’d be paying anywhere between 0% and 5% tax through the FDR or CV tax methods. See the Stake/Hatch comparison here: https://old.reddit.com/r/PersonalFinanceNZ/comments/fy5cp1/stake_vs_hatch_fees_explained/fmz1y57/. You would not the purchase transaction to go through after the NAV has increased substantially, say after many days or weeks? (With some reasonable assumptions of course). 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. Sharesies offers the lowest fees for share trades up to $3,000 given there's no minimum transaction fee. Hatch offers a simple way to keep fee percentages low by allowing auto-investments into all 2,700+ companies and ETFs. Should I be looking to move to investnow? This is high tax. Press J to jump to the feed. New comments cannot be posted and votes cannot be cast, More posts from the PersonalFinanceNZ community. The fixed cost % depends on how much you invest, obviously. Hi all, I'm investing exclusively on smartshares ETFs. There’s no minimum deposit amount (really! One assumption I’ll use for this example, but feel free to change, is that you have monthly contributions through hatch, this is because you want to trade less frequently while still contributing to your investment. Hatch also gives investors the ability to buy and sell shares in thousands of funds and companies listed on the Nasdaq and New York Stock Exchange. If you are under $50,000 in all foreign assets (not including those in PIE’s), you will be paying tax on dividends alone. InvestNow allows you access to Smartshares without the fees. Who is Hatch Suited to? 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. Press J to jump to the feed. Will I earn dividends directly from owing a fund through Hatch or Stake? Let’s assume you were investing $400 a week in InvestNow, so you invest $1600 a month through Hatch. You’d be investing 20,800 a year and have FX fees of $104 NZD, add to this $144 NZD to get $248 in total fees to Hatch. 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. People with Hatch accounts can invest in a wide range of US-listed shares. 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? Sharesies vs ASB Securities vs Direct Broking vs Hatch Direct Broking offers the best value fees for big trades (i.e. The platform cannot run away with your money or use it to pay their creditors, nor is the value of your funds or shares affected – after all, it is not the Fund Platform that determines the value of your funds and shares. Hatch account holders can buy and sell stocks listed on the New York Stock Exchange and the NASDAQ. Hatch charges .5% of the interbank FX fee. Smartshares offers New Zealand's most extensive selection of ETFs, but other investment platforms like Hatch, Stake and Sharesies offer US-listed ETFs. 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. It created New Zealand’s first ETF (the NZ Top 10 Fund) in 1996. A place to discuss personal finance for New Zealanders. Not suitable for: Passive investors investing less than $100-200 at a time. The difference is both in fees you paid and compound interest lost. 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 … Hatch/Stake took me about 12 hours to process US FX transfers and 12 hours to process the Share purchase, so if you time it wrong it can take as long as InvestNow (ie if markets are closed). From what I am aware, buying mutual funds from Smartshares which in turn subscribes to issuers such as Vanguard is a slow process? 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. 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. The Smartshares NZX-50 Index fund can be swapped for the AMP capital NZ shares fund. A quick note on Index fund fees. 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. Overtime the benefit of Vanguard’s low fees will really payoff. InvestNow and SmartShares dividend reinvest so you don't have to worry about it. Smartshares, Vanguard, and AMP Capital, all issue, low cost, passively managed funds that invest in international shares. Would I be better to lump transfer that money into the Hatch VOO investment but keep up the regular savings plan to Smartshares? Kiwi Wealth is a regulated entity – it's a default KiwiSaver provider and part of the Kiwi Group Holdings Limited financial services group, which is owned by NZ Post, The NZ Super Fund and ACC. The Hatch option could be more cost-effective for investors who make fewer and/or higher value trades. 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. Press question mark to learn the rest of the keyboard shortcuts, https://old.reddit.com/r/PersonalFinanceNZ/comments/fy5cp1/stake_vs_hatch_fees_explained/fmz1y57/. 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. They charge an admin fee, but have a nicer front end than NZX and are a little more flexible. 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