Swiss Digital Asset Managers Compared

In Switzerland there are the following digital asset managers (also called robo advisors):

• Alpian
• clevercircles
• cleverinvest (Bank CIC)
• Descartes Finance
• Digifolio (BLKB)
• findependent
• Finpact
• Finpension
• Inyova Impact Investing
• Kaspar&
• PostFinance E-Vermögensverwaltung
• Radicant
• Raiffeisen Rio
• SaxoSelect
• Selma Finance
• Swissquote Invest Easy
• True Wealth
• wiLLBe (LLB)

You can request a comprehensive overview of Swiss Robo Advisors as a PDF using the field below.

Robo Advisors are the current trend

The term robo advisor is somewhat misleading because these services have nothing to do with physical robots and often don't provide consultation. Instead, robo advisory services automate the process of investing money on behalf of investors.

Postfinance E-asset management (1.3 billion Swiss francs of assets under management), True Wealth (more than 1,5 billion Swiss francs of assets under management) and Swissquote (more than 400 million francs of assets under management) are among the largest Swiss robo advisors in terms of assets under management. The digital offer from VZ Vermögenszentrum manages more than 2 billion francs in assets, but is not a typical robo advisor.

However, the portion of total assets managed by robo advisors is still relatively small, and many robo advisory services have not yet reached profitability.

But while Robo Advisors have not yet achieved wide adoption, they have served to put the high costs of conventional asset management under pressure. With the increasing digitization of everyday life, wealth management is also moving towards digital and hybrid models.

How it differs from conventional wealth management

Unlike conventional asset management services which require large amounts of investment capital, digital asset management services can be obtained starting with investment capital as low as 500 francs (findependent, Swissquote Invest Easy), 1000 francs (cleverinvest), 2000 francs (Selma Finance) or 8500 francs (True Wealth).

The majority of investments are automated, often in exchange-traded funds (ETFs). However, some digital asset managers also invest actively. Risk capacity and risk tolerance of investors is determined through digital questionnaires and assets are invested in ETFs based on the information provided. The investment consultation provided by conventional asset managers is not normally provided by robo advisory services. Hybrid models are an exception to the rule. These combine online services and consultation. 

There is no doubt that Swiss robo advisors are notably cheaper than conventional private banking services. Depending on the amount of assets being invested and your investment profile, the cost of using a robo advisor can work out up to ten times lower than that of using the most expensive private banking services.

Buying shares in ETFs directly through an affordable online broker is an even more affordable option. 

Digital wealth management with and without investment advice

All Swiss robo advisors can be contacted by phone for general questions. Only a minority, however, offer contact options directly via app or video call.

Most Swiss robo advisors do not offer investment advice. The lack of investment advisors is therefore also a distinguishing feature compared to traditional wealth and asset management. From the point of view of many digital wealth managers, however, investment advice is not necessary due to the digital investment process and is merely an unnecessary cost factor.

For customers who nevertheless want digital asset management with advisors, there are now also a few offers in Switzerland. In such so-called «hybrid» models, in addition to the digital app, there is also the option of receiving advice from real people. Providers with investment advice include Alpian, Descartes Finance, Digifolio (BLKB), PostFinance e-asset management and Selma Finance.

Flat fees compared

Swiss robo advisors do not charge fees for the opening and closing of accounts. Retrocession fees (commissions) are either absent or, if present, are forwarded to investors.

Together with product issuer fees, flat fees are the most significant fees charged by digital service providers. Practically all Swiss robo advisors charge flat fees equal to a percentage of managed assets.

These flat fees generally cover brokerage fees, transaction fees and custodial fees. Government transaction duties and value added tax are typically charged separately. With individual providers such as Inyova, the product costs are also included in the flat fees.

Flat fees can vary significantly depending on the provider. 

• clevercircles: Flat rate 0.65%; from CHF 100,000-200,000 0.55% per year, CHF 200,000-500,000 0.45%, CHF 500,000-1 million 0.35%, from CHF 1 million 0.25% per year. Minimum CHF 40 per year.
• cleverinvest: Flat rate 0.5% per year.
• findependent: Flat rate 0.4% to 0.29% per year depending on the investment amount.
• Finpension: Flat rate 0.39% per year.
• Inyova Impact Investing: Total fee 1.2% - 0.9% per year depending on investment amount. Product costs included.
• Kaspar&: Under CHF 10,000: 0.44% per year. CHF 10,000-50,000: 0.39% per year. From CHF 50,000: 0.34% per year. 
• Radicant: Up to CHF 25,000: fees of 0.9% per year, from CH 25,000: 0.8%, from CHF 100,000: 0.65%, from CHF 250,000: 0.5% per year. 
• Raiffeisen Rio: Flat rate 0.65% per year.
• SaxoSelect: Flat rate 0.75%.
• Swissquote: Flat fee of 0.6% per year (Invest Easy).
• True Wealth: Flat rate of 0.5% per year. From CHF 500,000, fees decrease further (0.49% - 0.25% per year).
• wiLLBe: Flat rate of 0.49% per year.

Comparison of flat fees with investment advice

Some digital providers offer additional investment advice - this is also referred to as a «hybrid model». These offers are somewhat more expensive than the cheapest robo advisors without investment advice.

• Alpian: 0.75% per year.
• Descartes Finance: 0.45% - 0.6% per year.
• Digifolio: Flat 0.75% per year.
• PostFinance E-Wealth Management: Flat rate 0.75% per year. For larger investment amounts, the fee decreases to 0.6% per annum.
• Selma Finance: Under CHF 50,000: 0.68% per year. CHF 50,000-150,000: 0.55% per year. Above CHF 150,000: 0.47% per year. Above CHF 500,000: 0.42% per year, above CHF 5 Mio. by arrangement.

Product issuer fees

Practically all digital asset management services pass on the costs charged by issuers of investment products in addition to the flat fee you pay for the service. Most commonly, product issuer fees are made up of the TERs of the ETFs included in the investment portfolio. On average, product issuer fees come to between 0.18% and 0.45% per annum. For some products, however, the fee is well over 1% and is thus more expensive than the flat fee charged by other providers.

With some providers, the product fees are included in the flat fees (Inyova).

Exchange rate costs can also be a factor when investing in foreign currencies. These can amount to up to 1.5%.

An overview of the product costs and the exchange rate surcharge depending on the Robo Advisor can also be found in the PDF (via the box below).  

In the case of conventional private banking services, product issuer fees are normally charged in addition to asset management fees. The fees charged by actively managed mutual funds are typically much higher than those charged by ETFs.

Cost overview digital asset managers without advisory

Cost overview digital asset managers with advisory

Additional fees

Not all fees are included in the flat and product fees. The following fees may be added:

• Stamp duties: With all providers.
• Foreign currency charges: with many providers.
• Stock exchange levies: Are added by many providers.
• Tax directory fees: With some providers (up to a maximum of 250 francs).
• Value-added tax (VAT): Also charged by many providers.

Different products

As a rule, digital asset management services invest in passively managed mutual funds known as exchange traded funds (ETFs). Swiss robo advisors typically use replicating ETFs from large ETF issuers like iShares, including synthetic ETFs in some cases. Exchange traded commodities (ETCs) are sometimes used for commodity investment. Some services also allow you to add individual securities to your portfolio.

How secure are digital asset management services?

Assets invested through robo advisor services are held in a custodian bank, and benefit from the same depositor protection guarantees as other assets held in banks.

In the case of True Wealth and Selma Finance, assets are held at Saxo bank (Switzerland). Robo advisor services operated by banks hold assets at their corresponding bank. Assets managed by Swissquote are deposited at Swissquote as its own custodian bank.

Unlike money, securities such as ETF shares are not included in bankruptcy proceedings when a custodian bank fails but remain the property of investors. Money held in custodial accounts is guaranteed up to a maximum of 100,000 francs. 

More on this topic:
Online broker comparison
Private banking comparison