Actually, I’d like to clarify what are the tax implications in Switzerland when holding index funds?
Vanguard UK offers a general account with 0.15% account fee, capped at 375 GBP per year. then you can invest in both index funds and ETFs.
It’s not all that expensive, especially when compared to choosing a Swiss broker. You skip a broker totally, which is one less point where it all could fail. I know JCollins invests directly with Vanguard (in USA), he skips the exchanges and ETFs, he has somehow more trust in index funds.
My questions here are however:
- which currencies does Vanguard UK accept
- at which exchange rate does Vanguard covert your money to USD when you buy a USD product
- how do you report index funds in Swiss tax declaration
- at which prices do you trade index funds, since they are not exchange traded
I really like the idea of investing directly with Vanguard, because it’s a simpler and a bit safer solution. And when you buildup your portfolio and you reach $1’000’000 value, you still only pay 375 GBP, which at this point would only be 0.0375%. To me that’s a fair price and you don’t feel like you’re just freeloading on the backs of active traders like you do on Interactive Brokers.
What do you guys think?