Different withholding tax treatment of ETFs vs. Swiss Pension Funds should be also considered together with the TER.
US ETF: dividend yield 2%, withholding tax ETF 15% Ireland, 30% otherwise, while for Swiss pension fund 0% is achievable
Swiss ETF: dividend yield 2.5%, withholding tax 35%, while for Swiss pension fund 0%
Rest of the world: dividend yield 2.5%, withholding tax say 25%, while for Swiss pension fund probably 15% treaty rate
for a portfolio 40% Swiss, 30% US, 30% RoW the difference could reach easily 0.5-0.6%
(ETFs benchmarks include dividends after the full withholding tax at offshore rate)
I understand that some 3a funds (e.g. Swisscanto) replicate the indexes themselves and can take advantage of the double taxation agreements and also of special agreements for pension money.
In any case the tax difference for the Swiss part of the portfolio would be significant (35% withholding tax for ETF vs. 0% for pension money).
maybe insiders can confirm or elaborate further…