Profinder — Ganzheitliche Finanzberatung Schweiz

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.

ETFs: the revolution in investing

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

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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.

2

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.

3

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.

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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

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Frequently asked questions about ETFs & Index Funds

Answers to the most important questions

Invest simply and affordably

We show you how to build wealth efficiently with ETFs and index funds.

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