Sharesies and Kernel are two of New Zealand’s most popular investing platforms — but they’re built for different investors. If you’re deciding between them, here’s a clear comparison.
Kernel wins for investors who primarily want index funds and automated long-term investing. Fees are lower for fund investing, the auto-invest experience is better, and there's no platform fee. Sharesies wins if you want to also buy and sell NZX shares or Australian shares alongside funds. They solve different problems — many investors use both.
Side-by-Side Comparison
| Feature | Sharesies | Kernel |
|---|---|---|
| Platform fee | 0.50% p.a. (max $250/year) | $0 |
| Fund fee | Fund fee + platform fee | Fund fee only |
| NZ index fund example | USF at 0.34% + 0.50% = 0.84% total | Kernel High Growth at 0.25% total |
| NZX share trading | ✅ Yes | ❌ No |
| ASX share trading | ✅ Yes | ❌ No |
| US share trading | ✅ Yes | ❌ No |
| Auto-invest | ✅ Yes | ✅ Yes (superior) |
| Minimum investment | $1 | $1 |
| Mobile app | Good | Excellent |
| Fund range | 100+ (including Smartshares) | ~10 (own funds) |
| KiwiSaver | ❌ No | ✅ Yes |
| Investor protection | Drivewealth/SIPC for US | Public Trust supervisor |
| PIE funds | ✅ Yes (most funds) | ✅ Yes |
Fee Comparison: Where It Really Matters
Sharesies charges a 0.50% p.a. platform fee on top of the underlying fund fee. This is the key difference for index fund investors.
$50,000 in a global index fund — annual cost:
| Platform | Fund | Fund fee | Platform fee | Total |
|---|---|---|---|---|
| Kernel | High Growth | 0.25% | $0 | 0.25% = $125 |
| Kernel | S&P 500 Fund | 0.25% | $0 | 0.25% = $125 |
| Sharesies | Smartshares TWF | 0.20% | 0.50% | 0.70% = $350 |
| Sharesies | Smartshares USF | 0.34% | 0.50% | 0.84% = $420 |
At $50,000, Kernel is $225–$295/year cheaper than Sharesies for equivalent exposure.
Over 20 years on $50,000 at 8% growth:
- Kernel cost: ~$6,000
- Sharesies cost: ~$16,500–$19,000
The Sharesies platform fee cap of $250/year applies when your portfolio exceeds $50,000 — this partially limits the damage at large balances.
The Sharesies Platform Fee Cap
Sharesies caps its platform fee at $250/year for portfolios over $50,000. Once you hit $50,000:
- Sharesies effective platform fee falls as a percentage
- At $200,000: $250/year = 0.125% (competitive)
- At $500,000: $250/year = 0.05% (very competitive)
For very large portfolios (over $200,000), Sharesies becomes more competitive. But InvestNow and Kernel still have no platform fee — so Sharesies still loses on fee grounds at any balance.
Investment Options: Sharesies Has More
Sharesies is a broader platform. It offers:
- NZX-listed shares (any NZX company)
- ASX shares (Australian companies)
- US shares and ETFs (via Drivewealth)
- Smartshares ETFs
- Managed funds (many providers)
- Bonds (some corporate bonds)
Kernel offers only Kernel’s own funds (~10 funds). No individual shares.
If you want to do it all on one platform — index funds, NZX shares, and US shares — Sharesies is the better fit. If you want pure index fund investing at the lowest cost, Kernel (or InvestNow) wins.
Auto-Invest: Kernel Wins
Both platforms support automatic investing. But Kernel’s auto-invest is more polished:
- Kernel: Set weekly or monthly auto-invest per fund. Clean UI, easy to adjust.
- Sharesies: Auto-invest available but requires more steps, and the platform fee applies to each auto-invest purchase.
For investors building wealth through regular contributions (the most effective strategy), Kernel’s auto-invest experience is superior.
KiwiSaver: Kernel Has It
Kernel offers KiwiSaver. Sharesies does not. If you want a single app for both KiwiSaver and outside-KiwiSaver investing, Kernel is convenient.
Who Should Choose Sharesies?
- You want to buy and sell individual NZX shares (e.g., Fisher & Paykel Healthcare, Mainfreight)
- You want US share access alongside index funds on one platform
- Your portfolio is over $200,000 and the $250/year cap makes fees competitive
- You’re already using Sharesies and don’t want to switch
- You want the widest possible fund selection (100+ funds from many providers)
Who Should Choose Kernel?
- You want a dedicated index fund investment account at the lowest cost
- Auto-invest and “set and forget” investing is your primary need
- You want KiwiSaver and investment funds in the same app
- You’re investing under $100,000 and the fee difference is meaningful to you
- You want a mobile-first app experience
Using Both
Many NZ investors use both Sharesies and Kernel:
- Kernel: Core index fund portfolio (auto-invest, lowest fee)
- Sharesies: NZX shares and occasional US share purchases
This gives you the best of both platforms.
Verdict
| Decision | Winner |
|---|---|
| Lower fees for index funds | Kernel |
| More investment options | Sharesies |
| Better auto-invest UX | Kernel |
| Individual share buying | Sharesies |
| KiwiSaver integration | Kernel |
| Large portfolio (>$200k) | Even (Sharesies cap reduces gap) |
| Beginner, starting small | Kernel |