• ETF (Exchange Traded Fund) is a financial asset traded on the stock exchange. It consists of several financial assets from the same assets class and seeks to replicate the performance of a given index, either fixed income or variable income. 
• ETFs are used on a large scale in the passive investment strategy because they are diversified and have lower management fees. 
• In New Zealand, ETFs are not capital gain taxed and some of them do not pay dividends since they are reinvested in their own units. 
• Examples of ETFs in NZX (New Zealand Exchange): Smartshares NZ Top 50 ETF (FNZ), Smartshares S&P/NZX ETF (NZG), Smartshares S&P/ASX 200 ETF (AUS), Smartshares US Equities ESG ETF (USA), etc.

Advantages of ETFs for investors: 

• Greater simplicity. 
• Lower administration fees. 
• Lower risk. 
• Profitability in line with the market. 
• Low need for follow-up (or portfolio rotation) 

See below the ETFs traded on NZX-New Zealand Exchange.

The Smartshares Total World ETF invests in the Vanguard Total World Stock ETF, which is designed to track the return on the FTSE Global All Cap Index. 
Expense ratio: 0.40% per year.

The Smartshares Total World (NZD Hedged) ETF invests in the Vanguard Total World Stock ETF, which is designed to track the return on the FTSE Global All Cap Index. 
Expense ratio: 0.46% per year.

The Smartshares Global Bond ETF invests in international fixed interest assets, with the objective of outperforming the Barclays Global Aggregate Index by 1% per annum over rolling 3-year periods, hedged against the New Zealand dollar.
Expense ratio: 0.54% per year.

The Smartshares Global Aggregate Bond ETF invests in the iShares Core Global Aggregate Bond UCITS ETF NZD Hedged (Acc), which is designed to track the return on the Bloomberg Barclays Global Aggregate Index hedged to the New Zealand dollar. 
Expense ratio: 0.30% per year.

The Smartshares Automation and Robotics ETF (BOT) invests in the iShares Automation & Robotics UCITS ETF USD (Acc). 
Expense ratio: 0.75% per year.

The Smartshares Healthcare Innovation ETF (BOT) invests in the iShares Healthcare Innovation UCITS ETF USD (Acc). 
Expense ratio: 0.75% per year.

• NZ BOND ETF (NZB) 

The Smartshares NZ Bond ETF invests in New Zealand fixed interest assets, with the objective of outperforming the S&P/NZX A-Grade Corporate Bond Index over rolling 3-year periods. 
Expense ratio: 0.54% per year. 

• S&P/NZX NZ GOVERNMENT BOND ETF (NGB)

The Smartshares S&P/NZX NZ Government Bond ETF is designed to track the return on the S&P/NZX NZ Government Bond Index. 
Expense ratio: 0.20% per year.

The Smartshares NZ Cash ETF (NZC) invests in cash and cash equivalents, with the objective of outperforming the S&P/NZX Bank Bill 90-Day Index over rolling 1-year periods.
Expense ratio: 0.20% per year.