ETF Savings Plan

Do any Swiss banks offer ETF savings plans?

Hi there,

A number of Swiss banks offer savings plans based on actively-managed investment funds. However, as of yet there are very few Swiss ETF savings plans in the classic sense of the term.

There are 3 main options for investing in ETFs:

1. Classic ETF savings plans: You choose how much you will invest in ETF shares and how often. You also decide which ETFs you want to invest in. This option requires little effort on your part, but brokerage and administrative fees charged by banks may be high.

2. Digital asset management (robo advisors) with ETFs: A number of Swiss robo advisor services like True Weatlh are available. Service fees are typically equal to between 0.5% and 1% of the invested amount. The fees (total expense ratio or TER) of the ETF also applies. You generally do not select ETFs for investment yourself, and services which let you choose ETFs typically limit your choice to select ETFs. You can find more information about Swiss robo advisors here.

3. Buy ETF shares through a securities broker: You can buy ETF shares through Swiss securities brokers. Online brokerage services are typically the most affordable. You pay brokerage fees and most brokers also charge custodial fees for the safekeeping and administration of your ETF shares. Unlike a classic savings plan or robo advisor service, you have to order each transaction yourself, which requires more ative involvement. You can find the cheapest online broker based on the amount of ETF shares you expect to hold and the number and size of ETF transactions you expect to make using the moneyland.ch online securities broker comparison. Just select the "Individual profile" to customise comparison criteria.

Classic ETF savings plans in Switzerland:

Swissquote: Swissquote had an ETF savings plan in its product lineup, but it now only offers this plan to its existing savings plan customers. The bank has indicated that they may offer this plan to new customers again in the future. In addition to custodial fees, you pay an ETF share purchase fee of 9 Swiss francs.

Vermögenszentrum (VZ): VZ lets you set up a savings plan through which you can invest in ETFs. A direct debit is set up to ensure that the money is saved/invested as per the savings plan. A flat-fee equal to 0.55% of each investment is charged by VZ. You pay stamp duties and the TER of the ETF in addition to the VZ fee. Savings/investment have to be paid into the plan on a monthly basis or additional transaction fees will apply. The choice of ETFs and index funds is limited to 30 funds.

Cash banking by zweiplus: ETF savings plans are included in the fund savings plans offered by Cash. Plans with requirements as low as 100 francs per deposit and ETF are available. A fee equal to 1% of the value of a savings plan is charged when you buy or sell the plan. No fee is charged for deposits into your savings plan. Custody fees apply as follows: Fee equal to 1% of savings when savings are CHF 8000 or less; CHF 20 flat fee per quarter when savings range between CHF 8000.01 and CHF 100,000; CHF 100 flat fee when savings range between 100,000.01 and CHF 500,000. Children up to the age of 18 do not pay the 1% fee for buying and selling plans, and they pay reduced custody fees.

Best regards from Moneyguru

More on this topic:
Buying ETFs in Switzerland: Cutting the Costs
Swiss Robo Advisors Compared
Swiss securities broker comparison

Hello,

I read in the NZZ about ETF savings plans and I would like to open this type of savings plan with an ETF which tracks the SMI. My goal would be to transfer 200 francs per month into the plan by standing order without having to pay high fees.

The NZZ report says to open an online custody account with an online bank. Can anyone tell me how I should actually go about doing this and what my options are?

Thank you very much and kind regards

Dear ladies and gents,

First of all, thank you for the great job you are doing through your online comparison portal. For the past few years, your site has been my first port of call when I look for financial services. Thank you again for the great work.

I am in the process of looking for a profitable savings plan, ideally an ETF savings plan because the fund costs are lower.

Unfortunately, Swissquote doesn’t offer an ETF savings plan in Switzerland anymore.

Are there any ETF savings plans available in Switzerland into which I could make regular small deposits by standing order, with the money being automatically invested in ETFs?

If not, what is your opinion on opening a savings plan in an EU country as a resident of Switzerland (at Comdirect, for example)?

Thanks in advance.

Here is an interesting article on ETF savings plans in the NZZ.

But the article also includes regular funds and index funds (listed but not traded on exchanges). There are virtually no classic passive savings plans with low fees in Switzerland.

Robo-advisors like TrueWealth and Elvia e-invest are an alternative, as they can be used like savings plans (with standing orders) as long as you have a few thousand francs for the minimum first deposit. You pay the admin fee (0.5% or 0.55% respectively) plus the TERs of the ETFs used. You don’t pay extra fees when you deposit money.

Foreign ETF savings plans (German plans, for example) are probably cheaper, but you run the risk of losing money on the franc to euro exchange.

Hi. Could the fund savings plan from Postfinance be a good alternative? What is your verdict on the costs of that plan?

Thanks and I look forward to your answer.

Postfinance offers 3 index funds (not ETFs) with its savings plans:

Pictet - Europe Index. TER: 0.74%
Pictet - Japan Index. TER: 0.74%
Pictet - USA Index. TER: 0.74%

It also offers conventional funds:
PostFinance Fonds Suisse. TER: 0.60%
PostFinance Fonds Global. TER: 0.80%

It doesn’t charge custodial fees, but you pay a high 1% (max. CHF 1000) brokerage fee (the “issuing fee”) when your money is invested in funds. If you have PostFinance’s Private Account Plus, the brokerage fee is 0.5%, which is more reasonable.

PostFinance savings plans are too expensive, in my opinion. The TER of the funds offered is high. There are ETFs and index funds with much lower TERs.

The issuing fee is really a no-go in terms of passive funds.

Hello,

I want to set up an ETF savings plan. Are any affordable plans now available in Switzerland?

What if I were to open a savings plan with a German broker? Would I have to pay foreign transaction fees and exchange spreads every time my Swiss francs are transferred? That wouldn’t make financial sense for a monthly savings plan.

I’d appreciate any and all tips and suggestions.