ETFs & Index Funds
Invest cost-efficiently and broadly diversified
ETFs: the revolution in investing
Exchange Traded Funds (ETFs) have democratised investing. With a single product, you can invest in thousands of equities or bonds – at minimal cost.
Studies show that most active fund managers fail to beat their benchmark index over the long term. With ETFs, you get the market return – guaranteed and cost-effective.

Why ETFs are worthwhile
Low costs
TER of 0.05-0.30% instead of 1-2% for active funds
Global diversification
1'500+ equities worldwide with a single ETF
Guaranteed market return
No manager risk, no underperformance
Transparency
You can always see what's in the fund
Flexibility
Tradable on the stock exchange at any time
Tax advantage
Accumulating ETFs are tax-efficient for Swiss investors
In-depth knowledge
What is an ETF?
An ETF passively tracks an index. An ETF on the MSCI World contains around 1'500 of the largest companies in industrialised countries – in the same proportions as the index.
With one click, you buy a stake in Apple, Microsoft, Nestlé and 1'497 other companies.
Physical vs. synthetic
Physical ETFs actually buy the underlying equities. Synthetic ETFs replicate the index using derivatives.
For Swiss investors, physical ETFs are usually preferable – more transparent and without counterparty risk.
Accumulating vs. distributing
Accumulating ETFs automatically reinvest dividends. Distributing ETFs pay dividends into your account.
For Swiss private investors, accumulating ETFs are often more tax-efficient: no stamp duty on reinvestment, and the compound interest effect happens automatically.
The best ETFs for Swiss investors
For global equities: iShares MSCI World (IWDA) or Vanguard FTSE All-World (VWRL).
For Swiss equities: iShares SLI (SLICHA) or UBS ETF SMI.
For bonds: iShares Core Global Aggregate Bond (AGGH) for global diversification.
Important: pay attention to the fund domicile (Ireland is preferred for US dividends).
Avoid common mistakes
These are the mistakes we see most often in practice
Only looking at the TER
Tracking difference and spread are just as important.
Buying too many ETFs
Overlaps and unnecessary complexity.
Buying niche ETFs
Low liquidity, high spreads, poor tracking.
Trying to time the market
Nobody can reliably time the market.
Checklist: your next steps
What you can do right now
Frequently asked questions about ETFs & Index Funds
Answers to the most important questions
Related topics
These topics might also interest you

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