6 NZX ETFs To Be Considered While Diversifying The Portfolio

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Summary

  • ETFs offer a diversified, flexible, and transparent portfolio to investors.
  • The share prices are mostly contingent on the differing intraday value of underlying assets.
  • Smartshares is the pioneer of ETFs in NZ.

ETFs are type of stocks that track a certain sector, index, or any other asset, but can be purchased or sold on an exchange like a normal stock. They are a portfolio of securities, which are designed to track specific indices like the biggest 10, 20 or 50 companies listed on the NZX, the ASX, etc.

ETFs provide an opportunity to investors to invest in a range of securities while offering the benefit of flexibility as it can be traded as a regular stock, and transparency to investors, as the information is public. However, buying ETFs does not assure investors against losses as purchase price of a unit can vary from the value of primary fund assets.

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Smartshares is the creator of ETFs in NZ and offers an extensive range of ETFs to invest in.

Let’s have a look at these 6 NZX Smartshares ETFs that can be considered by investors.

Smartshares NZ Bond ETF (NZX:NZB)

The Smartshares NZ Bond ETF seeks to outperform the S&P/NZX A-Grade Corporate Bond Index over rolling three-year cycles by investing in New Zealand fixed interest assets. Nikko Asset Management New Zealand Limited is the fund's investment advisor.

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NZB’s 1-month return (before fees before tax) stood at 0.48% while the benchmark S&P/NZX A-Grade Corporate Bond index rose by 0.24%. The Fund has a gross dividend yield of 2.55%, market cap of 0.36 billion and net tangible assets of $3.1 as of 16 April.

Smartshares Global Bond ETF (NZX:GBF)

The Smartshares Global Bond ETF invests in global fixed interest assets. It has an aim of surpassing the Barclays Global Aggregate Index by 1% p.a. over rolling 3-year periods, hedged against NZ dollar. PIMCO Australia Pty Ltd is the fund's investment advisor.

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GBF’s 1-month return (before fees before tax) stood at 0.17% while the benchmark (Barclays Global Aggregate Index) fell by 0.09%. The Fund has a gross dividend yield of 1.64%, market cap of 0.23 billion, and net tangible assets of $3.33 as of 16 April.

On 19 April, GBF traded at $3.338 at the end of the market session, up by 0.% from the previous close.

Smartshares NZ Cash ETF (NZX:NZC)

The Smartshares NZ Cash ETF makes investments in cash and cash equivalents. The Fund has the purpose of overtaking the S&P/NZX Bank Bill 90-Day Index over rolling 1-year period.

NZC’s 1-month return (before fees before tax) stood at 0.07% while the benchmark S&P/NZX Bank Bills 90-Day Index rose by 0.03%. The Fund has a gross dividend yield of 1.32%, market cap of 0.22 billion, and net tangible assets of $2.95 as of 16 April.

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On 19 April, NZC traded at $2.951 at the end of market session, up by 0.03% from the previous close.

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Smartshares S&P/NZX 50 ETF (NZX:NZG)

The Smartshares S&P/NZX 50 ETF captures the S&P/NZX 50 Index's performance. The S&P/NZX 50 Index is made up of 50 of the NZX Main Board's leading stocks. Each business in the index is given a weighting based on its market capitalisation.

NZG’s 1-month return (before fees before tax) stood at 2.9% while the benchmark S&P/NZX Bank Bills 90-Day Index rose by 2.92%. The Fund has a gross dividend yield of 0.68%, market cap of 0.15 billion and net tangible assets of $2.73 as of 16 April.

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On 19 April, NZG traded at $2.741 at the end of market session, up by 0.22% from the previous close.

Smartshares NZ Property ETF (NZX:NPF)

The Smartshares NZ Property ETF is structured to monitor the return on the S&P/NZX Real Estate Select Index and invests in property assets listed on the NZX Main Board.

The S&P/NZX Real Estate Select Index comprises the highest and the most liquid members of the S&P/NZX All Index, which are listed under the GICS Real Estate Industry Category, but excludes products by non-NZ issuers.

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NPF’s 1-month return (before fees before tax) stood at 3.16% while the benchmark S&P/NZX Real Estate Select Index rose by 0.33%. The Fund has a gross dividend yield of 3.16%, market cap of $0.13 billion, and net tangible assets of $1.49 as of 16 April.

On 19 April, NPF traded at $1.486 at the end of the market session, down 0.47% from the previous close.

Smartshares NZ Dividend ETF (NZX:DIV)

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

The S&P/NZX 50 High Dividend Index is comprised of 25 high-yielding financial instruments that are listed on the NZX Main Board and are included in the S&P/NZX 50 Index.

NPF’s 1-month return (before fees before tax) stood at 0.47% and the benchmark S&P/NZX 50 High Dividend Index rose by 0.45%. The Fund has a gross dividend yield of 3.37%, market cap of $0.1 billion, and net tangible assets of $1.29, as of 16 April.

On 19 April, DIV traded at $1.29 at the end of market session, down 0.08% from the previous close.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)


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