Sharesies rolls out ultra-low-fee funds amid growing market competition

Sharesies unveiled new investment funds designed to give investors broad market exposure at a 0.1% annual charge, with a global share fund already live and further products such as a global bond fund and a NZ-cash fund in the pipeline. The funds are structured as portfolio investment entities, capping tax at 28%. Commentators point to the rapid growth of low-fee competitors like Kernel, whose founder expects others to emulate its model.

Academics and investment specialists stress that fee reductions alone do not guarantee better outcomes; portfolio diversification and long-term strategy remain crucial. They also caution that index funds can concentrate holdings in a few large tech companies, underscoring the need for investors to understand underlying exposures.