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US 500 PIE Funds vs Direct ETF Investment: 2025 Total Returns Comparison

PIE vs ETF Comparison

This page compares the performance of two popular NZ based US500 PIE funds (InvestNow Foundation Series and Kernel Wealth) against directly holding index ETF through popular brokers IBKR, Sharesies and Kernel. The total impact of taxes, fees and foreign exchange is calculated because all that really matters is the bottom line: How much $ will you have after withdrawal? Enter your tax rates to find out you would have after investing $49,000.

There is also a FIF paying scenario to demonstrate the effects of FIF FDR income tax on long term returns. It is assumed 1 in 5 years is negative and will use the CV method to pay zero income tax so a blended rate is used: 80%×Tax rate×5%, also it does not account for the complexities of negative market years and quicksale adjustments.

Be sure to withdraw any dividends from your VOO holding to avoid exceeding the $50,000 FIF de minimis. Total returns include the dividends as if they were reinvested. This is not financial advice, do your own research before investing. Also checkout the broker fees pricing calculator if you choose to invest in an ETF directly.

Your Tax Rates

Total Returns after Withdrawal Fees and Tax

Year IBKR + VOO Sharesies + VOO Kernel + VOO Kernel PIE Invest Now F/S PIE IBKR + VOO w/FIF
0 $49,482 $48,498 $48,578 $49,000 $48,755 $49,482
1 $53,725 $52,678 $52,761 $52,601 $52,464 $53,105
2 $58,332 $57,217 $57,303 $56,468 $56,454 $56,992
3 $63,334 $62,144 $62,234 $60,618 $60,747 $61,164
4 $68,764 $67,494 $67,588 $65,074 $65,364 $65,642
5 $74,660 $73,303 $73,401 $69,856 $70,330 $70,447
6 $81,062 $79,610 $79,713 $74,991 $75,673 $75,604
7 $88,013 $86,457 $86,566 $80,503 $81,420 $81,139
8 $95,559 $93,892 $94,006 $86,420 $87,602 $87,078
9 $103,753 $101,964 $102,084 $92,771 $94,252 $93,453
10 $112,649 $110,728 $110,855 $99,590 $101,405 $100,294
11 $122,308 $120,243 $120,378 $106,910 $109,100 $107,636
12 $132,795 $130,575 $130,717 $114,768 $117,377 $115,515
13 $144,181 $141,792 $141,943 $123,203 $126,281 $123,971
14 $156,543 $153,971 $154,131 $132,259 $135,859 $133,046
15 $169,966 $167,194 $167,364 $141,980 $146,163 $142,785

Table of Fees

Comprehensive fee comparison across different investment platforms and options. InvestNow vs Kernel vs VOO via Sharesies, Interactive Brokers and Kernel Wealth Shares
Fee Type IBKR + VOO Sharesies + VOO Kernel + VOO Kernel PIE Invest Now F/S PIE IBKR + VOO w/FIF
Forex costs $3.33 $245.00 $196.00 $0.00 $0.00 $3.33
Trading fees $0.50 $8.20 - - $0.00 $0.50
Subscription fees - - $15.00 - - -
Referral bonus (new customers) $490.00 $5.00 $0.00 $0.00 $0.00 $490.00
Entry costs -$486.17 $248.20 $211.00 $0.00 $0.00 -$486.17
Fees drag 0.03% 0.03% 0.03% 0.25% 0.03% 0.03%
Tax on dividends 0.40% 0.40% 0.40% - - -
PIE Tax on FIF - - - 1.40% 1.40% -
Total drag 0.43% 0.43% 0.43% 1.65% 1.43% 1.68%
Effective growth rate 8.57% 8.57% 8.57% 7.35% 7.57% 7.32%
Fixed exit costs $3.83 $8.33 $15.00 $0.00 $0.00 $3.83
Variable exit costs 0.00% 0.50% 0.40% 0.00% 0.50% 0.00%