Best ETF world ACC quoted on SIX

Investing / Portfolios
1

For some reasons I have to put equities on my Swiss Bank Raiffeisen. Custody fee is 0,25% per year I know it’s not optimal but it’s part of a négociation to avoid downpayment for a specific RE project.

I’ll sell my VT and then buy it (100k) with IB and transfer it afterwards to avoid high fees and swiss stamp

The bank charges 0,1% more on custody fees for foreign exchange and I don’t feel like getting the dividend in USD from VWRL.
A MSCI World or FTSE All World I don’t really care since I can put a slice of EM on my 2nd or 3rd pillar through index fund which might more tax efficient than owning it through an ETF.

Here are the ETF compared:

-UBS WRDUSW quoted in USD which tracks MSCI World with 0,1% TER since this year. The issue is the spread between 0,4 and 0,5% and a weak AUM around 100mio

-Invesco FWRA quoted in CHF which tracks FTSE-All World with a 0,15% TER. Spread around 0,25% according to SIX but really weak volume so I guess trading is made with the market maker. It’s less than a year old and AUM around 90mio.

-ishares SWDA USD Msci World 0,2% TER
Spread is good around 0,05% and AUM 4000mio
The issue is I can’t find it with IB! Only the LSE one, not from EBS

-SPDR SWRD USD Msci World 0,12% TER
Spread is at 0,1% but same as SWDA I can’t find it on IB

It’s so easier to have an acc fund. Do you own of these funds and could you help to choose please?

1 Like
2

I think you are wrong assuming that it has to be World ETF. If you are ready to split your portfolio, it can be as well MSCI USA or MSCI Europe.

This one is formally a sustainable ETF, but there is hardly any difference to the standard index:

1 Like
3

I think you found the most important candidates already. The only other one is V3AA with 0,24% and ESG.

FWRA is still small but likely will be growing with a clear listed TER advantage. Personally I would try that but it depends on your feeling if you are ok with developed world or want EM too.

1 Like
4

Can’t help you with the ETF selection, but curious about pledging your securities as a downpayment on RE: did you negotiate a specific / custom deal with a local Raiffeisen branch or is there a more streamlined process for this?

Do you get the proceeds (dividends or other payout) from the securities pledged or do they?

Lastly, tax wise, are the securities still in your possession and you pay (wealth) tax on it?

Sorry if this is already covered elsewhere in the forum, I was too lazy to search … :smiley:

6

I use SSAC (MSCI ACWI) on SIX. Five year tracking difference versus benchmark is 0.05% per year which is lesser than its reported TER.

Another option could be SWDA (MSCI world)

1 Like
7

That doesn‘t mean the security has to be quoted/traded on SIX, does it?

9

I would advised against an ETF traded in USD as the bank will take 0.5-1% exchange fee. Also accumulating seems better in your case. An index including emerging market should have better returns on the long run.

So the two options are:

  • V3AA
  • FWRA

The real fees of V3AA were 0.05% in 2022 and 0.01 % in 2023

image
image530×622 12.2 KB

10

Thanks for all the replies!

I would like to avoid ESG index which I don’t believe in.
No worries for the currency conversion as I will buy it with with IB and then transfer it for free :innocent:
Yea I’ve already done it it’s too good to be true but it just takes 3 days to perform.

Anyway I’ll probably go with FWRA. I’ll keep you posted!

11

Can’t you just keep the assets you have and just transfer them to Raiffeisen? Why do you need them to be traded on SIX?

1 Like
12

Because of the custody fees.

13

As you said, it’s a new ETF (less than 8 months old). AUM are $129m already, so it’s rapidly growing.

14

The UBS one is 5 years old. The one quoted by SIX is about 80 mio but as I understood total ETF size is 320 mio. I guess it includes dist version and other market.

It would be weird that UBS discontinue that fund.
Having a core ETF 100k managed by a Swiss asset manager custoded by a Swiss Bank for a total for 350 bucks a year seems reasonable to me.

When I check on IB sometimes the spread is at 0,1% sometimes 0,8%. Sometimes 2x less or 2x more than FWRA. It’s so bizarre and doesn’t help my choice

15

I think in the end there would be many choices on SIX for Accumulating funds. It’s just a matter of

  • base currency (seems you don’t care if its USD or CHF)
  • TER
  • underlying index (FTSE all world all cap , MSCI ACWI) , I would say they are all well diversified
  • Tracking difference (in my view this is most important and smaller new funds won’t have this information yet)

While deciding which ETF to use on Swissquote, I was debating myself between SWDA, SSAC, VWRL and FWRA . In the end I decided if I will have CHF to invest, I will use VWRL (due to its liquidity and excellent tracking difference) . And if I have USD to invest , I will use SSAC (for its accumulating nature). Just to keep things simple and similar to my IBKR portfolio.

I still use VT on IBKR. The discussion above is for my backup broker and backup ETF.