For this, fund managers charge their investors something known as a 'management fee'. Instead, trades are done through DriveWealth, a platform which holds your shares and ETFs on your behalf. It allows Kiwis to invest in more than 140 NZ and global managed funds online, plus provides access to term deposits from 5 banks. Sharesies offers an experience very similar to Hatch and Stake, the difference being ongoing membership fees and percentage-of-trade-value based fees (vs Hatch's fixed trade etc). Last updated: May 6, 2020. Sharesies Review: Share trading made easy. I am currently a uni student and intend to invest around $7000/$8000 into index funds. Our values statement is simple: MoneyHub exists to give every New Zealander the information they need to make better financial decisions. Want to buy shares in some of the world's biggest brands? Worried about what happens to your investments if InvestNow collapsed or shut down? US shares: Stake vs Hatch vs Sharesies; NZ shares: Sharesies vs InvestNow vs Smartshares; Finder is committed to editorial independence. ... Hatch Full Review | How to buy US Shares and ETFs | New Zealand - Duration: 11:08. 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 intuitive sense. Dynamic startups like. Let’s take a look at who owns the investments that you buy through these platforms, and what happens if the platform goes out of business. ETF Issuers are pretty much the same as Fund Managers. Unfortunately these ETF issuers don’t offer anything in the New Zealand market. Simplicity offers New Zealand's lowest fee managed fund but isn't offered on InvestNow or Sharesies. Hatch and Sharesies both share a similar reputation when it comes to investing. Stake vs Hatch (vs Sharesies) Investing. Three investment platforms have entered the New Zealand market since 2017 - InvestNow, Sharesies and Hatch - through which people have invested a total of around $385 million. Last updated: Nov 12, 2020. Share ​Brokers let you buy and sell individual shares, although a fee is charged every time you buy or sell. We link to other websites throughout this website, but take no responsibility for the content they publish. 10 Top Investments for Young New Zealanders, Investing in the US Stock Market from New Zealand, Barefoot Investor-Friendly Financial Products in New Zealand. The reason I'm asking is that I've been using InvestNow but I'm thinking of changing. This gives you access to the dirt cheap Vanguard and Blackrock ETFs, as well as individual companies like Apple, Facebook, Netflix, and Tesla. Sharesies is known for having a simple, beginner-friendly user interface, however, this nice online portal doesn’t become cheap – they charge investors a subscription fee if your account value is over $50. You can buy Smartshares ETFs from the NZ sharemarket through a broker, or directly from Smartshares (note – ETFs bought directly from Smartshares must be sold via a broker). This means they offer a similar number of share and ETFs to invest in, but there are differences in the fees and features of each platform. What Happens If Your Investing Platform Shuts Down? Hatch is another Wellington based service owned by KiwiWealth, and they’ve recently reached over 10,000 investors. Platforms for US Share buying and selling include Hatch, Stake and, as of August 2020, Sharesies. However, the minimum investment is high at $1,000, and their funds aren’t available on InvestNow or Sharesies, making Simplicity a much less accessible investment option. Most New Zealand Fund Managers also offer KiwiSaver funds, but I won’t cover these here. With Hatch, you have lost $499 compared to the ROI without fees, and with InvestNow you have lost $4216. What happens to your money if InvestNow or Sharesies go bust? Thanks to fractional investing, no minimum amounts, and our low fees, you can start investing with as much or as little as you like. Fund Platforms are a good option for everyone – both beginners and experts – as they allow you to invest in lots of different funds under one roof. Want to compare Sharesies with Hatch and Stake for US Shares? In addition to being a Fund Platform, they provide a brokerage service for shares listed on the NZX, New Zealand’s sharemarket. Hatch only offers US-listed companies, but we've included it here as it is an NZ-based share brokerage platform, and continued to prove popular. Building an investment portfolio – Simplicity vs InvestNow, Smartshares vs Simplicity vs AMP vs Kernel – NZ Share Index Fund shootout, Smartshares vs Vanguard vs AMP – International Share Index Fund shootout, investing in individual companies requires research, Buying shares on the NZX – Sharesies vs ASB Securities and Direct Broking, What I learnt – ‘Investing for Contractors’ Panel with Darcy Ungaro, Term deposit rates suck! On the surface, they all have one thing in common – they all provide you with access to funds to invest in. Both InvestNow and Sharesies are fund platforms. Vanguard currently has two global share funds (Vanguard International Shares Select Exclusions Index Fund – NZD Hedged/Unhedged) accessible in the New Zealand market, and they are investor favourites, again due to their very low management fee. Best of all, managing your investments is very easy with both Sharesies and InvestNow's user-friendly interface. While we receive compensation when you click links to partners, they do not influence our content. Further Reading:– InvestNow vs Sharesies – Ultimate Fund Platform showdown and review– What happens to your money if InvestNow or Sharesies go bust? It is a percentage of the total funds under management, for example, 0.25% or 1.50% per year. SuperLife offers 44 funds, investing almost entirely into Smartshares ETFs (e.g. Overseas, Vanguard has a much more comprehensive offering, with over $5 trillion under management across a huge range of funds and ETFs. Fund Platforms are services that offer you access to a variety of different funds to invest in, sometimes described as a “Fund Supermarket”. Hatch vs. Sharesies vs. Investnow etc. NZ shares: Sharesies vs InvestNow vs Smartshares Launched in March 2017, InvestNow is an online investment platform based in New Zealand. Each of these providers offers access to a different range of financial products. Hatch review: Easy access to US shares. 11:08 . Our NZX in a Nutshell guide explains what you need to know. What happens if a Fund Platform goes out of business? Some of the ETF issuers are (click each o… New Zealand has a lot of Fund Management companies who invest your money on your behalf in different assets (like shares and bonds). Neither platforms offer, Comparing Platforms for US Share Buying and Selling (Hatch vs Stake vs Sharesies), Comparing New Zealand-based Fund Managers, Comparing New Zealand-based Share Broker Platforms, Comparing New Zealand-operated Fund Platforms, Barefoot Investor-friendly Financial Products in New Zealand. Our easy to read custodian guide explains what you need to know. InvestNow offers the widest number of funds and ETFs, and doesn't charge a platform fee. Hatch gives Kiwis easy access to the United States sharemarket, and with this access comes the opportunity to invest in 754different US domiciled ETFs!!! Our easy to read custodian guide explains what you need to know. InvestNow vs Sharesies – Ultimate Fund Platform showdown and ... InvestNow's Flexible KiwiSaver Scheme Review. They are all fantastic options for Kiwis wanting to invest, but it is often difficult and confusing for investors to decide which one to sign up for and use. Read our Comparing Sharesies vs Investnow vs Hatch and more guide. Markets – Sharesies is a platform through which investors can buy the listed Exchange-traded funds in NZX whereas Hatch is a platform through which the ETFs listed on the US market can be bought. So, investing in hatch is a good option if you are planning to buy shares of a single company. Further Reading:– Smartshares vs Simplicity vs AMP vs Kernel – NZ Share Index Fund shootout– Smartshares vs Vanguard vs AMP – International Share Index Fund shootout. Our easy to read custodian guide explains what you need to know. The content of this article is based on my personal opinion and should not be considered financial advice. In addition, a large collection of Smartshares ETFs can be found on InvestNow and Sharesies – which is probably the easier way to invest in these ETFs due to their lower fees and superior online portals. Fund Platforms also provide investors with good online portals, allowing you to buy, sell, and view your investments at anytime and anywhere. ​InvestNow, Sharesies, Hatch, ASB Securities and Direct Broking are well-known among New Zealand investors as online platforms for trading shares and buying funds. There are also no brokerage fees and free withdrawals at any time, and any amount. Simplicity is an attractive choice among investors because of their super low fees. Hatch makes investing easy and rewarding for novices and experts. over $10,000), but is the most expensive for smaller trades. you need to invest over $4,616 in the SuperLife Aussie Mid Cap Fund for it to work out cheaper than investing in the Smartshares ETF equivalent. InvestNow doesn't charge any membership fees, which means the, There are a lot of options available to everyday New Zealanders looking to invest in shares or funds. I think Sharesies is aimed at financial cabbages like me. A wide selection of New Zealand Fund Managers, like Milford Asset Management and Pie Funds, are available on InvestNow. Get new investing articles in your inbox. US shares: Stake vs Hatch vs Sharesies; NZ shares: Sharesies vs InvestNow vs Smartshares; Stake, Hatch and Sharesies are three popular online investing platforms. Sharesies and InvestNow are the two most prominent New Zealand-based Fund Platforms, and we compare them side-by-side below: let you invest in many fund managers without the minimum investment that many fund manager usually charge if you go direct. Subscribe to get new Money King NZ articles in your inbox. the US Small Cap ETF. The information should never be used without first assessing your own personal and financial situation, and conducting your own research. InvestNow offers over 120 funds on its platform, from 20 Fund Managers/issuers including AMP, Smartshares, and Vanguard. By Lisa Walter May 5, 2020 . They don’t charge any account fees, making it a frequently recommended choice for investors (they make money by charging Fund Managers to list their funds on the platform). They do not manage your funds – instead they act as a “middleman” between investors and Fund Managers. This is usually a minimum fee (in dollars) or a percentage of the sale. Your guide to investing in shares, bonds, funds, and peer to peer lending in NZ, InvestNow vs Sharesies – Ultimate Fund Platform showdown and review. However, each platform tends to excel in a particular area, meaning overall the platforms are quite different. Worried about what happens to your investments if Hatch … Sharesies is another popular option for New Zealand investors and is aimed at young people. Interestingly, their non-Australasian ETFs simply invest in Vanguard and Blackrock ETFs, so they are really ETFs within an ETF! Does anyone have any thoughts on the pros and cons and what kind of investor should use which platform? Must-read Hatch-related guides. An Australian platform, Stake, is also testing its product in New Zealand and plans to launch in coming months. I am mainly looking into the mid-long term of between 5 - 10 years and hoping to have made a good level of returns and take it out to pay back some of my student loan. Fund Managers are the people who actually provide and manage the funds you invest in, taking your money and investing it into assets like shares and bonds. Further Reading:– Buying shares on the NZX – Sharesies vs ASB Securities and Direct Broking. Sharesies offers far fewer funds, but does offer ETFs and, unlike InvestNow, investors can hold individual company shares all on the one platform. They do not manage your funds – instead they act as a “middleman” between investors and Fund Managers. So what kind of service should you use? Andrew Munro . Now wondering if Sharesies is going to be better, given I use them for NZX already. When thinking about investing, Exchange Traded Funds are an option everyone would opt for, that is why they are very popular and give an instant diversification to your portfolio. Brokers are probably more suited to more experienced investors, as the large number of share and ETF offerings might be overwhelming for beginners, particularly if investing in the United States market. Hatch vs Stake - Mid/Long Term Index Funds. Want to know h ow to trade or invest in the NZX? Archived. Comparing Platforms for US Share Buying and Selling (Hatch vs Stake vs Sharesies) Platforms for US Share buying and selling include Hatch, Stake and, as of August 2020, Sharesies. That is unless: Further Reading:– Building an investment portfolio – Simplicity vs InvestNow. Comparing Sharesies vs Investnow vs Hatch and more, Top 10 New Zealand Personal Finance Experts, Trusted Insurance Brokers in Christchurch, American Express Airpoints Platinum Review, Best Foreign Currency Debit & Credit Cards, TransferWise International Money Transfer Review, Renting Directly to Tenants vs Using an Agent, Trusted Mortgage Brokers in Napier and Hastings, Fixed or Floating Mortgage Rate Calculator, How to Check Your KiwiSaver Contributions, New Zealand Defence Force KiwiSaver Scheme, 65+ Best Online Shopping Websites in New Zealand, The Complete Guide to Renting in New Zealand, Hardship Assistance - Urgent Costs and Living Expense Assistance, Student Job Interview Questions and Answers. ​. Close. The Smartshares ETF you want is not offered on InvestNow or Sharesies e.g. We compare Hatch, Stake and Sharesies side-by-side below: InvestNow offers the widest number of managed funds doesn't charge a platform fee.​. a sharemarket). What you can do – with 5 term deposit tips, ← 4 things to know about investing in Equity Crowdfunding, Buying shares on the NZX – Sharesies vs ASB Securities and Direct Broking →, What I’ve been investing in – February 2020, Rights issues, share buybacks, and acquisitions – 5 things to know about Corporate Actions, Property vs Shares – The pros and cons of buying residential property, Due diligence on shares – How I evaluate companies before investing, How to invest in Australian shares from New Zealand, What I’ve been investing in – January 2020. Visit our Sharesies vs Hatch vs Stake Guide; Worried about what happens to your investments if Sharesies collapsed or shut down? They have low minimum investment amounts, … Investing . Sharesies vs InvestNow vs Smartshares: Available markets. I'm aware the other options are probably better but Sharesies has a nice easy to use interface and a minimal number of investment options which is less overwhelming for us novices. The fund offered on SuperLife has cheaper management fees than the Smartshares ETF equivalent AND you are investing enough money to make the management fee savings cover the $12 annual fee e.g. Whether you’ve been investing for a while, or you’re new, you’ve probably heard of these popular New Zealand investment services. Fund Platforms are popular with all investor types (i.e. We are close enough that a massive number of brands and companies like Bunnings, Harvey Norman, Ryman Healthcare, and Xero have a strong Trans-Tasman presence. Discussion about Sharesies vs InvestNow vs SuperLife vs something else? They allow you to invest in large range of funds in once place, and manage your investments through their online portals at anytime of the day or night. First Steps - What is an "index fund"? In this video I compare the US share trading platforms; Stake, Sharesies and Hatch side-by-side. The information on this website does not constitute financial advice in any form. Comparing these three, InvestNow offer the cheapest option. InvestNow, Sharesies, Simplicty, Vanguard, SuperLife, Smartshares, Hatch, and ASB Securities. Hatch starts increasing its fee every time you trade more shares. Worried about what happens to your investments if InvestNow, Sharesies, Hatch or another platform collapsed or shut down? Hatch vs Sharesies – Which Is Better? Does anyone have experience changing a reasonable amount of money from one platform to another? Another thing to be aware of is that Hatch is not a true broker, as they do not allow you to trade directly on the sharemarket. There are heaps of Fund Managers out there, and they tend to require a few thousand dollars as a minimum investment if you invest in a fund directly through them. Posted by 8 months ago. For doing so, they charge investors a management fee which is a small percentage of the amount you have invested. Hatch charges 0.5%, where as Stake charges 1%. As the assets increase in value, so does the value of the investment. ETF stands for Exchange Traded Fund, and they work the same as normal funds, apart from the key difference being that ETFs are listed and tradable on an exchange (i.e. We are a journalistic online resource with the aim of providing New Zealanders with the best money guides, tips and tools. those starting, occasional investors and expert-level) and don't have the high minimum investment levels that individual funds often charge. ​Our priority is accurate information. Want to compare Hatch with InvestNow, Sharesies and other platforms? Read our Comparing Sharesies vs Investnow vs Hatch and more guide. They charge brokerage fees whenever you make a trade (buy or sell something). I compare three key aspects of Sharesies and Hatch to help you make an informed decision on which platform is better for your personal investment journey. 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