Global brand names in ETFs driving local demand
Strong client demand for big name US ETFs has prompted investment platform InvestNow to expand its offering of low-cost locally-packaged options.
Tuesday, February 18th 2025, 6:34AM
by Kim Savage
Strong client demand for big name US ETFs has prompted investment platform InvestNow to expand its offering of low-cost locally-packaged options.
The $2 billion FUM company owned by Apex Group offers access to low-cost Vanguard ETFs via its Foundation Series PIE funds. Its Total World Fund grew to $153 million and its US500 Fund to $143 million as of January this year. The platform launched NZD hedged versions of the same funds last year.
Details of the new offerings have yet to be announced, but Good Returns understands InvestNow will launch two new ETF options giving clients exposure to Vanguard Global ESG as well as a Charles Schwab dividend option. InvestNow KiwiSaver members will have a new high growth diversified fund choice to consider and a fourth new option, still under wraps, is also waiting in the wings for rollout down the track.
InvestNow General Manager Mike Heath says the company’s ETF PIE options have been hugely popular among customers but it will continue to be selective about what it offers.
“It is customer driven. We'll launch these three in the next few weeks, and then we'll just see where this goes, how it evolves.”
The company will continue with its cost formula of management fee plus a transaction fee levy for buyers and sellers of 50 basis points, Heath says.
“That's everything that's all up, that's currency, that's everything, There's no additional cost to you as an investor.
“And so it's definitely the cheapest way to get exposure to these ETFs, plus with the additional benefits of the PIE tax.”
The fee structure suits the types of clients InvestNow serves, says Heath.
“Our customers are long term investors. We don't cater to day traders or people looking for short term profits.
“If you hold these for, you know, two or three years, it's by far the cheapest way to get exposure to those assets,” he says.
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