How to Invest in the NASDAQ from New Zealand
Our guide outlines NZ-based funds, US ETFs, tax implications, FIF rules, and currency risks specific to NASDAQ investing
Updated 13 October 2025
Summary
Our research outlined the options available to New Zealand investors to help you make an informed choice about how to approach the NASDAQ. We cover:
Know This First: Understanding the Risks Specific to New Zealand Investors
Summary
- The NASDAQ is a U.S. stock exchange best known for being home to many of the world’s leading technology companies - but it also includes businesses in sectors like consumer, healthcare, and industrials
- It has become the go-to destination for New Zealand investors chasing growth beyond the NZX, S&P and Australian markets.
- Home to tech titans like Apple, Microsoft and Google/Alphabet, plus thousands of innovative smaller companies, the NASDAQ offers exposure unavailable on the NZX.
- With the NASDAQ-100 delivering strong returns during tech booms (and equally dramatic crashes during corrections), getting your investing approach right matters - we believe it has never been cheaper to invest in the NASDAQ from New Zealand, thanks to dedicated funds and low-price share investing apps.
- This guide outlines NASDAQ funds to consider, explains how to invest in currency-listed shares directly, discusses how currency movements can impact your returns, provides key information about the IRD and FIF rules, and examines whether hedging your currency exposure is worthwhile considering the additional costs.
Our research outlined the options available to New Zealand investors to help you make an informed choice about how to approach the NASDAQ. We cover:
- Understanding Currency Risk and Interest Rates for NASDAQ Investing
- NASDAQ Indices Explained - NASDAQ-100 vs NASDAQ Composite
- New Zealand-Based NASDAQ Options
- US-Listed NASDAQ ETFs
- Leveraged, Inverse ETFs and Thematic ETFs (High Risk)
- Understanding Tax and FIF Rules for NASDAQ Investments
- Building Your NASDAQ Portfolio - A Practical Approach
- Frequently Asked Questions
Know This First: Understanding the Risks Specific to New Zealand Investors
- The NASDAQ is highly volatile - during the dot-com crash, it fell 78% and took 15 years to recover.
- In 2022, it dropped 33%, yet it's also delivered life-changing returns for patient investors.
- Since 2009, it's up over 800%. The key is understanding what you're signing up for.
- The NASDAQ-100 (which most "NASDAQ" investments actually track) is essentially a concentrated bet on American tech giants. The top seven companies - Apple, Microsoft, Amazon, NVIDIA, Google, Meta, and Tesla - make up half the index.
- For New Zealanders who prefer broad, long-term exposure without picking individual stocks, global growth funds (such as Kernel’s High Growth Fund and InvestNow’s High Growth Fund) can provide a diversified mix of NASDAQ companies plus other global innovators, reducing the risk of being overexposed to just one market.
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Our guide to Investing in the NASDAQ is sponsored by our friends at Kernel, a leading New Zealand-based investing platform.
Investing in the world’s most innovative companies doesn’t need to be complicated. Kernel makes it simple for New Zealanders to access global growth through their index funds, Shares & ETFs, and their KiwiSaver Plan.
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Understanding Currency Risk and Interest Rates for NASDAQ Investing
It's essential to understand that currency movements can completely transform your returns. The NZD has swung from 39 cents to 88 cents against the USD over the past 20 years. That's a massive range that can either double your gains or halve them.
In 2011, the NASDAQ-100 gained 3% in USD terms. However, the NZD strengthened from 75 to 82 cents - the result is that New Zealand investors lost 6% despite the index increasing. Conversely, in 2015, when the NZD fell from 78 to 65 cents, investors made an extra 17% just from currency movements alone. It's a double-edged sword that you need to understand before investing - our guide to currency hedging has more information to help you make an informed investing decision.
While these short-term currency movements can significantly impact annual returns, long-term investors often find that the compounding growth of underlying assets tends to outweigh currency fluctuations over many years. For those with a multi-decade investment horizon, attempting to time currency movements is generally less effective than staying invested.
In 2011, the NASDAQ-100 gained 3% in USD terms. However, the NZD strengthened from 75 to 82 cents - the result is that New Zealand investors lost 6% despite the index increasing. Conversely, in 2015, when the NZD fell from 78 to 65 cents, investors made an extra 17% just from currency movements alone. It's a double-edged sword that you need to understand before investing - our guide to currency hedging has more information to help you make an informed investing decision.
While these short-term currency movements can significantly impact annual returns, long-term investors often find that the compounding growth of underlying assets tends to outweigh currency fluctuations over many years. For those with a multi-decade investment horizon, attempting to time currency movements is generally less effective than staying invested.
The Effect of Interest Rates
NASDAQ companies are valued on future growth, not current profits. When interest rates rise, the value of those future earnings gets crushed - a dollar earned in 10 years from today is worth less when rates are 5% versus 0%. This is why the NASDAQ drops whenever the US Federal Reserve even hints at raising rates.
In 2022, this played out dramatically. The Fed hiked rates from near-zero to 5.5%, and growth stocks fell significantly. Profitable companies like Meta fell 65%. Unprofitable companies like Peloton dropped 95%. Even quality companies like Microsoft and Google fell 30%+. It's critical to remember that NASDAQ investing requires a long-term investment and comfort with day-to-day volatility.
In 2022, this played out dramatically. The Fed hiked rates from near-zero to 5.5%, and growth stocks fell significantly. Profitable companies like Meta fell 65%. Unprofitable companies like Peloton dropped 95%. Even quality companies like Microsoft and Google fell 30%+. It's critical to remember that NASDAQ investing requires a long-term investment and comfort with day-to-day volatility.
NASDAQ Indices Explained - NASDAQ-100 vs NASDAQ Composite
The NASDAQ-100 differs from the NASDAQ Composite, as outlined in detail below:
The NASDAQ-100 is commonly referred to as the "NASDAQ." It's the 100 largest non-financial companies on the exchange, and it's what almost every NASDAQ fund or ETF tracks. Holdings include Apple, Microsoft, Google, Amazon, NVIDIA, and 95 similar large companies. Operationally, the index is rebalanced quarterly and has special rules to prevent any single stock from taking over completely:
The NASDAQ Composite includes everything:
For almost all New Zealand investors, when someone says "invest in the NASDAQ," they mean the NASDAQ-100. That's what's available, liquid, and practical to own.
The NASDAQ-100 is commonly referred to as the "NASDAQ." It's the 100 largest non-financial companies on the exchange, and it's what almost every NASDAQ fund or ETF tracks. Holdings include Apple, Microsoft, Google, Amazon, NVIDIA, and 95 similar large companies. Operationally, the index is rebalanced quarterly and has special rules to prevent any single stock from taking over completely:
- No stock can exceed 24% of the index, and
- The top five combined can't exceed 48%.
- Despite these rules, the index remains incredibly concentrated, with Apple and Microsoft collectively accounting for about a quarter of its total value.
The NASDAQ Composite includes everything:
- All 3,700+ stocks are listed on the exchange.
- This includes tiny biotechs that might go bankrupt, Chinese companies you've never heard of, and all the big tech names, too.
- It's more diversified, but ironically, it's harder to invest in because very few funds track it.
- The logistics of buying 3,700 stocks, many of which barely trade, make it impractical.
For almost all New Zealand investors, when someone says "invest in the NASDAQ," they mean the NASDAQ-100. That's what's available, liquid, and practical to own.
What's in the NASDAQ-100?
The current makeup, as of September 2025, is not all tech:
Our View: The "technology" classification is a bit misleading. Amazon is classified as a consumer discretionary despite AWS being a massive tech business. Google and Meta are telecommunications despite being advertising/tech companies. In reality, probably 70% of the index is "tech" in the conventional sense.
- Technology (48%): The obvious ones - Microsoft, Apple, NVIDIA, Broadcom
- Consumer Discretionary (19%): Amazon, Tesla, Booking.com, Starbucks
- Healthcare (7%): Moderna, Regeneron, Illumina, Intuitive Surgical
- Consumer Staples (6%): Pepsi, Costco, Monster Energy
- Telecommunications (5%): Google, Meta (yes, they're classified as telecoms)
- Industrials (4%): Honeywell, Cintas, Copart
- Utilities (1%): Xcel Energy (literally one utility company)
Our View: The "technology" classification is a bit misleading. Amazon is classified as a consumer discretionary despite AWS being a massive tech business. Google and Meta are telecommunications despite being advertising/tech companies. In reality, probably 70% of the index is "tech" in the conventional sense.
Understanding the Magnificent Seven who Dominate the NASDAQ
MoneyHub doesn't provide individual stock analysis or recommendations - that's not our role. However, it's essential to note that seven companies account for approximately 50% of the NASDAQ-100 index's weight. When you invest in any NASDAQ index fund or ETF, half your money goes into these seven giants:
Our View: This extreme concentration means your NASDAQ investment's performance largely depends on these seven companies. If they do well, you do well. If they struggle, so does your portfolio.
- Apple (AAPL) - Consumer electronics and services ecosystem
- Microsoft (MSFT) - Enterprise software, cloud computing, and AI
- NVIDIA (NVDA) - Graphics processors and AI chips
- Amazon (AMZN) - E-commerce, cloud infrastructure, and advertising
- Alphabet/Google (GOOGL/GOOG) - Search, advertising, and cloud services
- Meta Platforms (META) - Social media platforms and metaverse
- Tesla (TSLA) - Electric vehicles and energy storage
Our View: This extreme concentration means your NASDAQ investment's performance largely depends on these seven companies. If they do well, you do well. If they struggle, so does your portfolio.
Where to Research Individual Stocks
If you're interested in researching individual NASDAQ companies, here are reputable sources:
Free Resources:
Paid/Premium Resources:
NZ Broker Research:
Important: Too many New Zealanders lose money on short-term, uninformed 'bets' on tech stocks. Individual stock picking is a risky strategy, and most professional fund managers fail to consistently outperform index funds over time. For individuals, it's even worse. For every investor who has had success with Rocket Lab, there are many more who have experienced negative returns. For these reasons, consider whether the time and risk associated with stock picking are worth it versus simply buying a low-cost index fund that has NASDAQ exposure.
Free Resources:
- Yahoo Finance (comprehensive financials and news)
- Google Finance (basic metrics and charts)
- Company investor relations websites (official reports and presentations)
- Seeking Alpha (community analysis, take with caution)
Paid/Premium Resources:
- Simply Wall St (visual analysis tools)
NZ Broker Research:
- Craigs Investment Partners (client access)
- Forsyth Barr (client access)
- JBWere (institutional-focused)
Important: Too many New Zealanders lose money on short-term, uninformed 'bets' on tech stocks. Individual stock picking is a risky strategy, and most professional fund managers fail to consistently outperform index funds over time. For individuals, it's even worse. For every investor who has had success with Rocket Lab, there are many more who have experienced negative returns. For these reasons, consider whether the time and risk associated with stock picking are worth it versus simply buying a low-cost index fund that has NASDAQ exposure.
New Zealand-Based NASDAQ Options
We outline popular funds below:
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​InvestNow Foundation Series NASDAQ-100 FundInvestNow's Foundation Series offers NASDAQ-100 exposure, with a $250 minimum investment.
More details: InvestNow Foundation Series NASDAQ-100 Fund Fund details:
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Kernel Global 100 FundTracks the S&P Global 100 - basically the world's 100 biggest companies. Looks almost identical to NASDAQ funds with the same tech giants dominating.
More details: Kernel Global 100 Fund Fund details:
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Kernel High Growth FundA global growth fund with about 40% NASDAQ exposure, mixed with Asian and European tech stocks.
More details: Kernel High Growth Fund Fund details:
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Smart US Large Growth (USG)An NZX-listed ETF that's not pure NASDAQ, but similar - about 65% of holdings are NASDAQ stocks.
More details: Smart US Large Growth (USG) Fund details:
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US-Listed NASDAQ ETFs
We outline popular options below based on their respective investing strategy:
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​Invesco QQQ Trust (QQQ)The original and most liquid NASDAQ-100 ETF with over $200 billion in assets.
More details: Invesco QQQ Trust (QQQ) Fund details:
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Invesco NASDAQ-100 ETF (QQQM)The cheaper alternative to QQQ with identical holdings.
More details: Invesco NASDAQ-100 ETF (QQQM) Fund details:
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Direxion NASDAQ-100 Equal Weight (QQQE)Equal weights all 100 stocks instead of market-cap weighting.
More details: Direxion NASDAQ-100 Equal Weight (QQQE) Fund details:
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Our guide to Investing in the NASDAQ is sponsored by our friends at Kernel, a leading New Zealand-based investing platform.
Investing in the world’s most innovative companies doesn’t need to be complicated. Kernel makes it simple for New Zealanders to access global growth through their index funds, Shares & ETFs, and their KiwiSaver Plan.
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Leveraged, Inverse ETFs and Thematic ETFs (High Risk)
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ProShares UltraPro QQQ (TQQQ)Provides 3x daily leverage on NASDAQ-100 moves.
More details: ProShares UltraPro QQQ (TQQQ) Fund details:
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ProShares UltraPro QQQ (TQQQ)Provides -3x inverse daily returns of NASDAQ-100.
More details: ProShares UltraPro QQQ (TQQQ) Fund details:
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First Trust NASDAQ-100 Tech Sector (QTEC)Pure technology companies from the NASDAQ-100 only.
More details Fund details:
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First Trust NASDAQ Cybersecurity ETF (CIBR)Broad cybersecurity exposure with NASDAQ focus.
More details: First Trust NASDAQ Cybersecurity ETF (CIBR) Fund details:
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Global X FANG+ ETF (FANG)Ultra-concentrated with just 10 mega-cap tech stocks.
More details: Global X FANG+ ETF (FANG) Fund details:
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Understanding Tax and FIF Rules for NASDAQ Investments
When you invest in the NASDAQ through New Zealand-based PIE funds (like InvestNow or Kernel), your tax situation is straightforward - the fund handles everything and your maximum tax rate is capped at 28%, even if you're on the 39% personal rate. That's an 11% tax saving for high earners, automatically applied.
However, if you buy US shares or ETFs directly through platforms like Kernel, Tiger Brokers, Sharesies, Hatch or Stake, things get complicated once your total foreign investments exceed $50,000. That's when the IRD's Foreign Investment Fund (FIF) rules kick in.
Our View: The FIF rules are essentially New Zealand's version of a wealth tax on foreign investments. Once you cross $50,000 in total foreign holdings (calculated at cost, not current value), you'll typically pay tax on 5% of your portfolio's opening value each year - regardless of whether you made money or lost it. Our guide to tax on investments explains what you need to know.
New Zealand PIE funds (like those from InvestNow, Kernel, and Smart) handle all the complex FIF calculations for you. They also:
The convenience alone is worth considering PIE funds over direct US investing, especially if you're approaching the $50,000 threshold.
For more detailed tax information, our comprehensive guide to Tax on Investments and Savings covers PIR rates, RWT, dividend imputation, and specific scenarios.
However, if you buy US shares or ETFs directly through platforms like Kernel, Tiger Brokers, Sharesies, Hatch or Stake, things get complicated once your total foreign investments exceed $50,000. That's when the IRD's Foreign Investment Fund (FIF) rules kick in.
Our View: The FIF rules are essentially New Zealand's version of a wealth tax on foreign investments. Once you cross $50,000 in total foreign holdings (calculated at cost, not current value), you'll typically pay tax on 5% of your portfolio's opening value each year - regardless of whether you made money or lost it. Our guide to tax on investments explains what you need to know.
New Zealand PIE funds (like those from InvestNow, Kernel, and Smart) handle all the complex FIF calculations for you. They also:
- Cap your tax rate at 28% (saving high earners 11%)
- Handle all US withholding tax (15% on dividends)
- Provide simple annual tax certificates
- Mean no IR3 filing required for most investors
The convenience alone is worth considering PIE funds over direct US investing, especially if you're approaching the $50,000 threshold.
For more detailed tax information, our comprehensive guide to Tax on Investments and Savings covers PIR rates, RWT, dividend imputation, and specific scenarios.
Building Your NASDAQ Portfolio - A Practical Approach
Before investing a dollar, it's essential to be clear about your goals. The NASDAQ isn't a savings account - it's a volatile growth engine that can turbocharge returns or destroy capital. It's arguably the polar opposite of investing in the NZX. Your approach should match your objectives:
For investors who want growth exposure as part of a long-term strategy but don’t want to overcommit to NASDAQ alone, funds like Kernel High Growth give you built-in diversification across U.S., European and Asian tech leaders in one portfolio.
- Seeking growth? You'll need to accept the volatility that comes with it
- Want diversification? It's best not to make NASDAQ your only holding
- Feeling a fear of missing out on gains? That's arguably the worst reason to invest
For investors who want growth exposure as part of a long-term strategy but don’t want to overcommit to NASDAQ alone, funds like Kernel High Growth give you built-in diversification across U.S., European and Asian tech leaders in one portfolio.
Common Mistakes that Cost Investors Money:
Too many New Zealanders have made these mistakes - we list them to help you shape your investing choices:
- Chasing Yesterday's Winners: The NASDAQ's best performers constantly rotate. Yesterday's NVIDIA could be tomorrow's Intel. Buying after massive runs usually ends badly.
- Timing the Market: Nobody - not fund managers, not analysts, not your friend who "called" Bitcoin - consistently times the NASDAQ. Time in market beats timing the market, as is the case with any investing.
- Ignoring Total Costs: A 1% annual fee difference becomes 22% less money after 20 years. Those "small" fees compound negatively just like returns compound positively.
- Forgetting Currency Impact: The NZD/USD rate can move 10-20% in a year. That's a massive swing that many investors ignore until it hits them.
- Underestimating Volatility: The NASDAQ will test your nerve repeatedly. If you don't have a plan before investing, you'll make emotional decisions during drawdowns.
How to Invest in the NASDAQ from New Zealand – Frequently Asked Questions
Investing in the NASDAQ needs some thought when it comes to foreign exchange rates, tax, investment management and more. Our section below explains what you need to know. If we're missing something you'd like answered, please contact our research team.
What happens to my investment when the exchange rate changes? (e.g. movements in NZD:USD)
Currency movements directly impact your returns in NZD terms. If you invest $10,000 when the NZD is at 60 cents (buying US$6,000 worth), and the NASDAQ stays flat but the NZD strengthens to 66 cents, your investment is now worth only $9,090 in NZD terms - a 9% loss despite no change in the underlying assets.
Conversely, if the NZD weakens to 55 cents, your US$6,000 is now worth $10,909 - a 9% gain from currency alone. Over long periods (10+ years), strong NASDAQ returns typically outweigh currency fluctuations, but short-term investors can see their returns doubled or halved by exchange rate movements. Consider currency-hedged options if this volatility concerns you, though hedging costs typically run 0.5-1% annually.
Conversely, if the NZD weakens to 55 cents, your US$6,000 is now worth $10,909 - a 9% gain from currency alone. Over long periods (10+ years), strong NASDAQ returns typically outweigh currency fluctuations, but short-term investors can see their returns doubled or halved by exchange rate movements. Consider currency-hedged options if this volatility concerns you, though hedging costs typically run 0.5-1% annually.
What do I need to do about tax and the IRD in general when it comes to investing in the USA?
Tax can be complicated - our guide to tax on investments and minimising tax on investments outlines what you need to know. Specifically:
- There is no tax on the gains from investing in New Zealand and most Australian shares. However, tax on foreign shares (e.g. Asia, US or UK based etc.) valued at over NZ$50,000 is calculated under the FIF rules, which includes consideration of any capital gains.
- There are two methods of calculating tax under the FIF rules being either FDR or CV; the method that produces the lowest tax is chosen. This can be complicated, so we suggest reading an expert guide to help you understand your obligations if you own shares investing in the USA.
- However. if you invest in overseas shares through a New Zealand-based managed fund, ETF or Kiwisaver provider, the fund manager will calculate and pay any FIF taxes through the fund.
Is my money safe, and who owns the shares I invest in?
Your ownership structure and safety depend entirely on your chosen platform:
Important: Always confirm the custody arrangements before investing. If it's unclear, ask "If your company fails, how do I access my investments?" The answer should be clear and documented.
- NZ-based PIE funds (InvestNow, Kernel Funds): You own units in the fund, not direct shares. Assets are held by independent custodians (typically major banks), segregated from the fund manager's own assets. If the manager fails, your investments remain protected.
- Direct share platforms (Hatch, Stake, Sharesies, Tiger Brokers): Shares are typically held in custody accounts with US brokers like DriveWealth or Interactive Brokers. You're the beneficial owner, with shares held in trust. These are protected by SIPC insurance up to US$500,000 per account if the broker fails.
- NZX-listed ETFs (USG): Held through your NZ broker with standard NZ investor protections.
Important: Always confirm the custody arrangements before investing. If it's unclear, ask "If your company fails, how do I access my investments?" The answer should be clear and documented.
Can I invest in NASDAQ-based shares and ETFs from New Zealand?
Yes, New Zealand investors have excellent access to NASDAQ investments through multiple channels:
Our View: The main considerations are fees (typically 0.5-1% for currency conversion plus US$3-10 per trade), minimum investments ($1 to $250 depending on platform), and tax implications once you exceed $50,000 in foreign investments. For amounts under $50,000, direct US investing can be simple and tax-efficient.
- Individual NASDAQ stocks and ETFs: Available through Kernel Shares, Hatch, Sharesies, Stake, Tiger Brokers, and traditional brokers like Craigs or Forsyth Barr
- NZ-based NASDAQ funds: InvestNow Foundation Series, Kernel Global 100, Smart USG on the NZX
Our View: The main considerations are fees (typically 0.5-1% for currency conversion plus US$3-10 per trade), minimum investments ($1 to $250 depending on platform), and tax implications once you exceed $50,000 in foreign investments. For amounts under $50,000, direct US investing can be simple and tax-efficient.
How much of my portfolio should I invest in the NASDAQ?
MoneyHub isn't a financial adviser, so we can't suggest any appropriate ratio. As with any investment, diversification is the key to managing risk. Keeping your savings in cash, term investments/fixed-interest, a portfolio of shares and a handful of managed funds is a proven way to minimise your exposure to any one investment. The NASDAQ is volatile - prudent investing is the best approach to long-term wealth creation.
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Our guide to Investing in the NASDAQ is sponsored by our friends at Kernel, a leading New Zealand-based investing platform.
Investing in the world’s most innovative companies doesn’t need to be complicated. Kernel makes it simple for New Zealanders to access global growth through their index funds, Shares & ETFs, and their KiwiSaver Plan.
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