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1 August 2025

So, You Want to Buy Shares: Are Kernel Shares & ETFs Right for You?

If you’re considering buying shares in individual companies through Kernel Shares & ETFs, you should do so with your eyes wide open. Individual shares have the potential for higher returns, but also carry a higher risk of loss and greater volatility compared to diversified funds.

Here’s everything you need to know.

First, understand the difference between shares and indexes

Index funds explained

Kernel’s main products are index funds. These allow you to purchase small portions of many shares, in many companies in one transaction (in other words, you own tiny bits of lots of companies).

They always track an index - for example, the NZ 20 tracks the 20 largest companies listed on the NZ stock exchange, while the S&P 500 tracks the 500 US companies listed on the Nasdaq & NYSE. Because there are multiple companies in each index, you gain some diversification, though the level of diversification depends on the index’s size and sector exposure..

ETFs explained

Similar to index funds, exchange-traded funds (ETFs) allow you to purchase small portions of many shares. However, the key difference is that they are listed on a stock exchange, such as the New York Stock Exchange (NYSE).

While many ETFs are index funds, e.g, VOO, not all of them are index tracking (e.g, ARK).

Shares explained

Shares, on the other hand, are a unit of ownership in a single company, and the value of those shares hinges largely on the market’s perception of the success or failure of that company. For example, if you were to buy shares in Apple and their newest iPhone flopped, your investment might decrease in value.

Shares can be great investments, but you have to choose well and this bit can be difficult. There are thousands to choose from, and doing your homework on every share can be extremely time-consuming.

Is buying shares via Kernel Shares & ETFs right for me?

If you’re buying individual shares or ETFs, Kernel Shares & ETFs is a great place to start. Here’s why:

  • Choose from a selection of the most well-known shares and ETFs.

  • Low, transparent fees, with no transaction fees.

  • Trade in NZD, not USD.

  • Use the Kernel platform to buy or sell shares with a single click, then monitor their value via our intuitive user interface.

Kernel’s pricing is simple and transparent

One of the main problems with buying US shares from NZ is that it’s often expensive, and many brokers and providers charge fees of up to $50 per trade. Kernel’s pricing is designed to be simple and transparent, so you can easily understand the fees involved.

The only fee you have to worry about is the foreign exchange fee.

Read more about Kernel’s pricing.

Trade in NZD

Another problem with buying US shares is that many providers buy, sell, and track the value of shares and ETFs in USD. When you’re adding NZD to your wallet, this adds another layer of complexity that can be confusing.

To make your life easier, with Kernel Shares & ETFs, you can add NZD to your wallet, buy shares in NZD, track their value in NZD, and then sell them in NZD. It’s just easier!

Long-term holding recommended

If you’re considering buying individual shares, it’s important to understand that their prices can fluctuate significantly over short periods. This means that if you buy and sell within a few weeks, months, or even a year, you may be exposed to greater risk and the possibility of selling at a loss if the market moves against you.

Investing for the long term, particularly with a well-diversified portfolio, has historically helped investors grow their wealth and manage the impact of short-term market volatility.

Before making any investment decisions, consider your financial goals, risk tolerance, and investment timeframe.

Read more about investment horizons.

Effective as part of a wider strategy

As a platform to purely buy shares, Kernel Shares & ETFs is a great place to start. However, for most investors, Shares & ETFs is best used as a part of a wider strategy, using a core-satellite approach.

Core-satellite investing involves building your portfolio from 80-90% diversified index and managed funds, then 10-20% from more speculative investments (like individual shares via Kernel Shares & ETFs). This strategy aims to balance growth potential with risk, but the appropriate mix will depend on your individual goals and risk tolerance.

Read more about core-satellite investing.

Intuitive buying, selling, and value tracking via the Kernel platform

Some traditional brokers may require additional steps or paperwork to complete share transactions. Kernel Shares & ETFs make buying, holding, and selling much easier. It’s all done via the Kernel platform, so everything is intuitive, easy, and fast.

All that’s required to buy or sell is a click of your mouse or a tap on your smartphone.



Disclosure: Past performance does not indicate future returns. The example provided is hypothetical and for illustrative purposes only. It is not intended to be taken as personalised financial advice.

The investment strategy and allocations described are based on general principles and may not be suitable for every individual. Readers who are unsure may wish to consult with a licensed financial advisor to determine the best investment strategy for their specific circumstances.


Ben Tutty

Ben Tutty

Contributing Writer | Tutty Copy

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Indices provided by: S&P Dow Jones Indices