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Kernel Shares & ETF Investing Review

Explore Kernel’s NZD-based US Shares & ETFs platform with 500+ S&P 500 shares and 300+ ETFs available. Our review covers fees, pros, cons and competitors.
Updated 5 June 2025
Summary:
To make sense of Kernel's Shares and ETFs plarform, we provide an in-depth and independent analysis covering:
​Important: All pricing is in New Zealand Dollars  - Kernel's investing platform does not show USD and we discuss this in detail below. 

Overview of Kernel Shares & ETFs Investment Account

 Kernel’s Shares & ETFs Investment Account is tailored for investors seeking seamless access to US markets without the complexities or extra management that come with foreign currency management and conversions. Key features include:

1) Extensive US market access, including:
  • Over 800 securities, including 500+ shares from the S&P 500 and 300+ ETFs from leading providers like Vanguard, Invesco, and SPDR.
  • Kernel’s decision to curate its Shares & ETFs Investment Account to approximately 500 S&P 500 shares and 300 "high-quality ETFs" (per discussions with Kernel's team) reflects what we believe to be a deliberate strategy to promote disciplined, long-term investing, rather than make non-traditonal or less proven ETFs available.
  • By focusing on established, large-cap US companies and reputable ETFs from providers like Vanguard, Invesco, and SPDR, Kernel steers investors away from speculative activities such as day trading, penny stock investments, or securities with low market capitalisation and questionable value.
  • For instance, shares like Allbirds (BIRD), which has plummeted nearly 99% since their 2021 IPO and now carry a diminished market cap, are excluded from Kernel’s offerings. This curation prioritises stability and quality, aligning with the needs of investors seeking sustainable growth over volatile, high-risk bets.

​​2) NZD-based transactions and a low-entry point. 
  • All investments are quoted and executed in NZD, eliminating the need for a USD account or manual currency conversions. There is no USD wallet - Kernel has likely designed this to encourage recurring investments rather than buying and selling trying to time the market.
  • The limitation is that if you were to sell, for example, NZ$10,000 of Microsoft shares to buy NZ$10,000 of Apple shares, you will pay the fee of your respective plan (1.50%, 0.60% or 0.40%), as there is no USD wallet.

 ​​3) NZD-based transactions and a low-entry point. 
  • A $1 minimum investment makes the platform accessible to across many investor types. This means you can invest without having to pay fees like USD3 per order like you would with Hatch or Stake, or pay Sharesies’ sliding-range fees.
  • There are also three flexible subscription plans; the higher the monthly/annual fee, the lower the FX fee. The plans also have a range of other benefits, outlined on the Kernel website. ​

What Can I Invest in Using Kernel’s 500 Shares and 300 ETFs?

Kernel’s Shares & ETFs platform offers a thoughtfully selected range of investment opportunities, designed to provide diversified exposure to US and global markets. Options include:

1) Broad Market Exposure through Shares: The 500+ shares are primarily drawn from the S&P 500, encompassing leading US large-cap companies across diverse sectors. Investors can own stakes in household names like:
  • Technology giants: Apple, Microsoft, NVIDIA, and Amazon, driving innovation in AI, cloud computing, and e-commerce.
  • Industrial leaders: Caterpillar, Deere & Co., and Boeing, representing manufacturing and infrastructure strength.
  • Financial powerhouses: JPMorgan Chase, Bank of America, Visa, and Berkshire Hathaway, offering stability and growth in banking and investment.
  • Consumer staples and healthcare: Procter & Gamble, Johnson & Johnson, and Pfizer, providing defensive exposure to essential goods and medical advancements.

2) Diverse ETF Options: The 300+ ETFs cover a wide spectrum of investment strategies, including:
Know This: Kernel’s selection of ETFs are predominantly index-based, offering low-cost, passive investment options that track market performance, ideal for long-term wealth building. This curated selection balances accessibility with diversity, enabling investors to build portfolios aligned with their goals—whether growth, income, or sustainability—without the overwhelm of thousands of choices.

Fees and Subscription Plans

Kernel’s Shares & ETFs platform offers three subscription tiers—Core, Plus, and Premium—each with distinct FX fees and benefits. You can review these on the Kernel website. Notably, the Core plan is free, making it an attractive entry point, though it comes with higher FX fees. There are no additional brokerage or transaction fees beyond the FX fee, which applies when converting NZD to USD for purchases and vice versa for sales. 
​
Please note: A key advantage of Kernel’s platform is the flexibility to upgrade your plan at any time, allowing you to optimise costs when selling investments. For example, you can start with the free Core plan (1.50% FX fee) to build your portfolio over time, then upgrade to the Premium plan (0.40% FX fee) when you’re ready to sell, significantly reducing FX costs on larger transactions. This strategy is particularly beneficial for investors accumulating substantial portfolios who want to minimise fees when liquidating assets.
We breakdown the three different plans below:

​1. Core Plan
  • Cost: $0/year
  • FX Fee: 1.50% per transaction (buy and sell)
  • Benefits:
    • Individual, joint, and child accounts
    • No subscription cost, ideal for small or infrequent investors
  • Considerations: The high FX fee (1.50%) can significantly impact returns, especially for larger or frequent trades. 

2. Plus Plan
  • Monthly: $5/month
  • Yearly: $50/year 
  • FX Fee: 0.60% per transaction
  • Benefits:
    • Lower FX fees compared to Core
  • Considerations: Suitable for moderate investors but requires weighing the subscription cost against trading frequency.

3) Premium Plan
  • Monthly: $15/month
  • Yearly: $150/year
  • FX Fee: 0.40% per transaction
  • Benefits:
    • Lowest FX fee, ideal for frequent or high-value investors.
    • Access to all platform features, with premium features promised in future updates.
  • Considerations: Best for active investors but less cost-effective for small portfolios.
All three tiers offer access to Kernel index funds, the Kernel KiwiSaver Plan, and the on-call savings account. No hidden extra fees, with no brokerage fees for Shares and ETFs.
Fee Example

​For $10,000 investment in Apple Inc.:
  • Core: $150 FX fee (1.50%) + $0 subscription = $150 total.
  • Plus: $60 FX fee (0.60%) + $60/year subscription (monthly billing) $120 total – however the paid plan assumes you’ll make ongoing investments.
  • Premium: $40 FX fee (0.40%) + $180/year subscription (monthly billing) = $220 total, again the plan assumes you’ll make ongoing investments.

​The Core plan is cheapest for small one-off investments, but Plus or Premium become more cost-effective for frequent trades or larger portfolios. Compared to competitors, Kernel’s FX fees (0.40%, 0.60% or 1.50%) are competitive with Sharesies and Hatch given you avoid paying the trade/broker fee, but Interactive Brokers (IBKR) offers lower FX spreads (0.20% or less) for advanced users.

However, we believe what Kernel offers is innovative and helps investors build portfolios long-term without being penalised with trade fees as you are with the likes of Sharesies and Hatch.
​
Know This: You can switch plans at any time to save on fees when you buy or sell your investments. For example:
  • By starting with the Core plan, you can invest without subscription costs, accepting the higher 1.50% FX fee during the accumulation phase.
  • When you’re ready to sell your portfolio—say, to access funds for a major purchase or retirement—you can upgrade to the Premium plan to benefit from the 0.40% FX fee, saving significantly on the sale transaction. This approach maximizes savings for investors with larger portfolios or those planning a bulk sale.

​Example: $50,000 Investment
Suppose you invest $50,000 in US shares (e.g., Apple Inc.) and later sell the entire portfolio. Here’s how the fees compare across plans, including the upgrade strategy:

Core Plan (No Upgrade)
  • Buy: $50,000 × 1.50% = $750 FX fee
  • Sell: $50,000 × 1.50% = $750 FX fee
  • Subscription: $0
  • Total Fees: $750 + $750 = $1,500

Premium Plan (Throughout)
  • Buy: $50,000 × 0.40% = $200 FX fee
  • Sell: $50,000 × 0.40% = $200 FX fee
  • Subscription: $180/year (monthly billing, assuming 1 year)
  • Total Fees: $200 + $200 + $180 = $580

Core to Premium Upgrade (Buy on Core, Sell on Premium)
  • Buy: $50,000 × 1.50% = $750 FX fee (Core plan)
  • Sell: Upgrade to Premium ($15/month). $50,000 × 0.40% = $200 FX fee
  • Subscription: $15 (1 month of Premium for the sale)
  • Total Fees: $750 + $200 + $15 = $965

Savings Analysis
  • Core vs Upgrade Strategy: Sticking with Core costs $1,500, while upgrading to Premium for the sale costs $965, saving $535 (35.7%).
  • Upgrade vs. Premium Throughout: Using Premium throughout costs $580, but the upgrade strategy ($965) is more expensive by $385 due to the higher buy-side FX fee. However, it avoids $165 in subscription fees ($180/year minus $15 for 1 month) during the holding period, which may be preferable for less frequent long-term investors.

​For a $50,000 investment, the upgrade strategy offers substantial savings compared to staying on Core, especially if you hold investments for months or years before selling. The larger the portfolio, the greater number of investments, and the more frequent buying of investments, the more significant the savings when upgrading to Premium. 
​
For instance, selling a $100,000 portfolio on Premium saves $1,100 in FX fees (1.50% vs. 0.40%) compared to Core, offsetting the $15/month subscription cost.

Considerations
  • Timing the Upgrade: Upgrade to Premium just before selling to minimize subscription costs. A single month ($15) is often sufficient for a bulk sale.
  • Portfolio Size: The upgrade strategy shines for portfolios above $10,000, where FX savings outweigh subscription fees.
  • Holding Period: Longer holding periods favour the Core-to-Premium approach, as you avoid ongoing Premium subscription costs.
This flexibility makes Kernel’s platform adaptable to various investment strategies, allowing you to balance upfront costs with future savings.

Kernel’s Shares & ETFs Platform – Pros and Cons

Pros
  • Seamless Investing: By quoting all securities in NZD, Kernel eliminates the need for USD accounts, simplifying the investment process for New Zealand investors. This is a New Zealand-first, and while the value of your investments moves all the time with share/ETF price movements and the NZD:USD exchange rate, we believe the NZD dashboard makes assessing net worth less complicated and encourages you to invest NZD without being penalised by brokerage fees.
  • Accessible Entry: The $1 minimum investment democratises access to US markets, appealing to  those building portfolios incrementally. Brokerage fees often impede investment because you’ll pay, for example, USD 3 with Stake or Hatch, which is a significant fee if you’re investing $100, $200 or even $500 (whether those be USD or NZD). However, Kernel avoids this altogether.
  • Curated Quality: The 500+ shares and 300+ ETFs are carefully selected, focusing on reputable S&P 500 companies and diversified ETFs, reducing choice overload. Too many New Zealanders have lost money chasing hype and over-promoted stocks that leave them burned and distrustful of investing. We believe Kernel has eliminated the risk of ‘boom or bust’ by selecting investments that have proven performance and growth prospects.
  • Cost Efficiency for Active Investors: The Premium plan’s 0.40% FX fee and no brokerage charges benefit frequent investors or those with larger and diverse portfolios; it’s cheaper than Sharesies, Hatch and Stake given the competitive FX fee and no brokerage charges.
  • Integrated Ecosystem: Kernel’s platform offers 20+ investment funds, KiwiSaver, on-call savings accounts, and shares and ETFs, offering a cohesive experience with educational resources and a user-friendly interface.
  • Future Potential: Kernel indicates on their website that “premium features” will be added later; this could enhance the platform’s value, particularly for Premium subscribers.
  • Free Plan Benefits Smaller investors: The core plan is very competitive for those looking to invest less than $300 a month. 

Cons
Despite its strengths, the platform has limitations:
  • Subscription Costs for Plus/Premium: The $5–15/month fee can erode returns for small or infrequent investors. For example, a Plus subscriber investing $500/year pays $60 in fees (12% of the investment), making the Core plan or competitors like Sharesies more appealing.
  • Higher FX Fees on Core: The 1.50% FX fee is steep compared to Tiger Brokers, Hatch (0.50%) and Stake (0.50%), impacting cost-conscious investors.
  • Limited Scope: With only 500+ shares and 300+ ETFs, Kernel’s selection is narrower than Tiger Brokers (8,000+ securities), Hatch (3,000+ securities) or IBKR (global markets), limiting options for investors seeking non-US or niche assets.
  • FIF Tax Complexity: US shares and ETFs fall under Foreign Investment Fund (FIF) tax regime, requiring additional reporting. Kernel currently doesn’t assist with FIF tax filing, unlike some platforms that offer tax tools.

Future Value of Kernel’s Pricing Plans
While Kernel’s current subscription tiers (Core, Plus, Premium) primarily differ by FX fees, the company has signalled that these plans will soon offer much more than just cheaper currency conversion. According to Kernel’s website, upcoming features include:
  • FIF Tax Reporting: Automated tools to help investors manage and report their Foreign Investment Fund (FIF) tax obligations, simplifying a major pain point for those holding US shares and ETFs.
  • Multi-Account Features: The ability to manage multiple accounts (such as individual, joint, and child accounts) more flexibly within a single login, making it easier for families or those with complex investment needs.
  • Fund Switching: Streamlined options to move between Kernel’s index funds, allowing for more dynamic portfolio management without unnecessary friction.

These enhancements are expected to be rolled out to higher-tier plans, adding significant value beyond just lower FX fees. For investors, this means that the Plus and Premium subscriptions will not only reduce transaction costs but also provide advanced tools and flexibility, making them more attractive for those seeking a comprehensive, long-term investment platform.

Kernel vs its New Zealand-Based Competitors

Kernel competes with platforms like Sharesies, Hatch, Stake, and Superhero. Here’s a comparative analysis:
  • Sharesies: offers access to NZX, Australian, and US securities with a range of pricing plans. Their free plan offers 0.50% FX fees and transaction fees of 1.90% (For US shares, this is capped at USD 5 per order). For frequent or higher-value investors, Sharesies also offers monthly subscription plans ranging from $3-15 per month that reduce transaction fees. 
  • Hatch: Provides 3,000+ US shares and ETFs with a 0.50% FX fee and USD 3 per trade. No subscription cost, but its USD-based system.
  • Stake: Similar to Hatch, with a 0.50% FX fee and USD 3 per trade, offering a broader selection than Kernel without subscription fees.
  • Superhero:  Similar to Hatch & Stake with a 0.50% FX Fee & $2 USD per trade (or 0.01% over $20k).Tiger Brokers: Offers the widest range of securities, from commodities to options. No subscription cost and lower fees at 0.35% FX fees & 0.01 USD/share (min $2 USD). 

Important: While Tiger Brokers is also another New Zealand-based competitor and offers the most cost effective of the options, we believe this may cater to different types of investors.
Fees Table
Let’s say you want to make 2 trades in a month (that is, [amount invested per trade] X 2). Here’s how the cost compares between Kernel and other providers:
Amount Invested per trade
Kernel Core (FREE)
Kernel Plus
($5)
Kernel Premium
($15)
Hatch
$250.00 
$7.50
$8.00
$17.00
$12.65
$500.00 
$15.00
$11.00
$19.00 ​
$15.15
$1,000.00 
$30.00
$17.00
$23.00
$20.15
$5,000.00
$150.00
$65.00
$55.00
$60.15
$10,000.00 
$300.00
$125.00
$95.00
$110.15
$20,000.00
$600.00
$245.00
$175.00
$210.15
$50,000.00 
$1,500.00
$605.00
$415.00
$510.15
$100,000.00
$3,000.00
$1,205
$815
$1,010.15
Amount Invested per trade
Sharesies PAYGO
Sharesies ($3)
Sharesies ($7
Sharesies ($15)
$250.00 
$12.00
$5.50
$9.50
$17.50
$500.00 
$21.77
$16.39
$12.00
$20.00
$1,000.00 
$26.77
$29.77
$25.39
$25.00
$5,000.00
$66.77
$69.77
$73.77
$73.39
$10,000.00 
$116.77
$119.77
$123.77
$131.77
$20,000.00
$216.77
$219.77
$223.77
$231.77
$50,000.00 
$516.77
$519.77
$523.77
$531.77
$100,000.00
$1,016.77
$1,019.77
$1,023.77
$1,031.77
Amount Invested per trade
Stake
Superhero
Tiger brokers
$250.00 
$15.15
$9.27
$8.52
$500.00 
$20.15
$11.77
$10.27
$1,000.00 
$30.15
$16.77
$13.77
$5,000.00
$110.15
$56.77
$41.77
$10,000.00 
$210.15
$106.77
$76.77
$20,000.00
$410.15
$206.77
$146.77
$50,000.00 
$1,010.15
$510.00
$356.77
$100,000.00
$2,020.00
$1,020.00
$706.77
Assumptions: 2 Trades in a month. Auto invest is not used for Sharesies plans. Fee calculations include transaction and currency exchange fees from an NZD deposit additional fees may apply. All fees are calculated based on publicly available information from provider websites. Monthly subscription fees are included in the total cost calculation. For the most up-to-date fee information, please visit the respective provider websites directly. 1 USD =$1.68 NZD
Our View: Kernel will appeal to anyone who wants to invest directly into US shares and ETFs while seeing prices in NZD. Adding a curated selection of share and ETF investments compliments its existing index-focused investment funds, KiwiSaver funds and cash account. 

We see it as a strong offering for investors who want exposure to specific S&P 500 companies, but it also will appeal to regular investors (of all sizes) who want to buy shares and/or ETFs, hold them for the medium and long-term before selling them with a single 0.40% fee. 
​
Investors looking for global diversification may prefer Sharesies, Hatch and/or Stake. However those who prefer far more investment options including options and futures, while being cost effective, may want to consider Tiger Brokers.

Kernel’s Shares & ETFs Investment Account – Most Suitable Investors

We believe the offering is arguably best suited for:
  • New Investors: The $1 minimum, NZD-based transactions, and curated selection lowers the barrier to US market investing. Kernel, alongside its investment funds and KiwiSaver plan offers low-fee options and allows for regular investing without the penalty of brokerage fees that make it expensive to re-invest dividends and small amounts (<$500).
  • S&P 500 and ETF Investors: Those targeting major US companies (e.g., Apple, Nvidia) or diversified ETFs (e.g., Vanguard, SPDR) without managing USD accounts.
  • Larger Portfolios on Premium: The 0.40% FX fee and no brokerage costs make this option especially appealing for those putting in bigger sums or contributing regularly, helping maximise value on larger portfolios.
  • Kernel Loyalists: Existing KiwiSaver or fund investors who value a unified platform and NZD-based experience.
  • Diversification Seekers: Investors adding US exposure to complement NZ-based assets, leveraging Kernel’s bond, sector, and thematic ETFs
  • Small, Infrequent Investors:  The core plan benefits smaller investments, being particularly competitive for those looking to invest 1-2 a month totalling to less than $300 NZD.
​
Kernel’s Shares & ETFs Investment Account may not suit:
  • Global Market Enthusiasts: Those seeking non-US securities or broader options may find Tiger Brokers more comprehensive.
  • Tax-Sensitive Investors: The FIF tax regime adds complexity, and Kernel’s tax support is still to be announced. 
  • Highly active traders: The lack features such as limit orders, stop losses and real-time feeds may not be attractive for those who want to try to time and beat the market.

Our Conclusion

Kernel’s Shares & ETFs Investment Account is a compelling and unique option for New Zealanders seeking a straightforward, NZD-based entry into US markets. With access to over 500 S&P 500 shares and 300 ETFs, a $1 minimum investment, and a user-friendly platform, caters to many different investors.

The Core plan’s free access is a standout for cost-conscious users, while the Premium plan’s 0.40% FX fee appeals to larger or regularly accumulating investors. However, subscription costs, a limited selection, and FIF tax considerations may deter some, particularly sophisticated or globally focused investors.

Compared to Sharesies, Hatch, or IBKR, Kernel arguably prioritises simplicity and integration, carving a niche for those who value a curated, NZD-based experience. As Kernel introduces promised premium features, the platform’s appeal could grow further. However, you'll need to assess your trading frequency, portfolio size and tax obligations to determine if Kernel aligns with your goals. For those eyeing iconic US companies like Apple or diversified ETFs from Vanguard, Kernel offers a solid, accessible path to global investing.

Our View: The platform’s curated approach simplifies the investment process by focusing on high-quality US securities, appealing to those who value ease and clarity over an exhaustive range of options.

Frequently Asked Questions

What’s the difference between Kernel Funds vs Kernel Shares & ETFs?

They key differences between Kernel’s funds and Kernel Shares & ETFs primarily come down to cost and investment structures. With Kernel funds, you only pay the fund's annual management fee. Whereas Shares & ETFs, you will have to consider the FX fees, the ETF’s management fees and the subscription plan. Kernel funds are also structured as an unlisted Portfolio Investment Entity (PIE), with the key benefits of a lower tax rate at maximum PIR of 28% and they also manage all the tax calculations for you.

Whereas with Kernel Shares & ETFs you will be responsible for figuring out your own tax liabilities. The key benefit of Shares & ETFs is the flexibility of choice. We asked Kernel's team to explain further; they confirmed Kernel’s intention with Shares & ETF looks to follow a “Core-Satellite” investing strategy where they encourage you to have majority of your holding in their Kernel funds with a small allocation to Shares & ETFs.

How does a Sharesies subscription compare to Kernel’s plans

The short answer is it depends on your investing behaviour and the amounts invested. For example, based on two orders a month, Kernel’s pricing tends to fare better for those investing <$300 in total on the Free Core Plan. However, assuming you auto invest, Sharesies’ $3 plan is more affordable for those investing between $300-$1,695 monthly. It’s important to note that if you’re not auto investing then this changes. E.g, it’s more beneficial to use Kernel’s Plus, if you’re investing $640+.​

How does the pricing work if I buy when US markets are closed? What price will I pay per share?

If you place an order when US markets are closed, it’ll be queued and executed at market open. Kernel has confirmed with MoneyHub's team that "since we only support market orders, you’ll get the market price available at the time your order is processed".

Does Kernel offer US early-morning or extended-hours trading?

Kernel currently does not offer US early morning or extended-hours trading. ​

If I invest $500 a month into US shares, what Kernel plan is most cost-effective?

  • If you’re investing $500 a month, it's likely your most cost-effective plan is to stay in Core where you’ll be paying $7.50 compared to Plus ($8.00) & Premium ($17). 
  • The threshold where it becomes beneficial to upgrade to Plus sits at $555 total invested a month.
  • For Premium this sits at $5,000 total invested in a month. However, it’s important to note that you can always upgrade or downgrade your plan as you please to be more cost efficient.

How does Kernel compare to Tiger Brokers?

If you’re a more sophisticated trader who wants access to greater investment options such as futures and options at a very cost effective price, Tiger Brokers is likely to suit you more. However, if you’re someone who wants to consolidate their wealth across one platform such as your index funds, savings accounts, KiwiSaver account and now Shares & ETFs, then Kernel remains a very competitive option. ​

Will Kernel offer more than 500+ shares in the future, or is the focus on S&P500-related companies and ETFs?

Looking at their broker partner Alpaca Securities, the platform offers a myriad of available options. While we’re not certain at this point it’s safe to say that they have the capability to do this down the line, with enough feedback.

Does Kernel offer any filters such as industry, ethical, market cap etc?”

The platform currently can filter by market (e.g, Emerging market, Europe, Asia etc.,), Asset Class (income, bonds, crypto currency, equities, etc.,) and Categories (energy, government, industrials, etc.,). Given enough time, Kernel is likely to improve on these filter options.
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