Degiro or Neon for All-World ETF?

Investing / Brokers
1

Now there’s investing on Neon and they have for instance “Xtrackers MSCI World UCITS ETF 1C” (https://www.justetf.com/ch/etf-profile.html?isin=IE00BJ0KDQ92) or " iShares MSCI ACWI UCITS ETF (Acc)" (https://www.justetf.com/ch/etf-profile.html?isin=IE00B6R52259). As far as I understand I only pay a fee of 0.5% (plus 0.150% stamp duty). As far as I undestand with these ETFs I wouldn’t incur a cost for dividends from Neon’s side as the ETFs are accumulating. So this seems quite competitive for buy and hold.

See:

I was thinking about investing in an Irish ETF and with another broker than IB to disperse risk. I thought about doing this with Degiro. But now I am wondering if I shouldn’t just go with Neon.

Does anyone know what costs there are for invsting in similar ETFs with Degiro?

1 Like
2

If the dividend is paid out in USD, then you will have to face a currency exchange fee. Thats outlined in the FAQ you lined to.

3

There are threads about Degiro and about Neon invest. Why do you need to open another thread to compare them?

4

As I understand, you’re planing to buy and hold these long term index funds. You’ve established that doing so incurs no recurring costs at Neon.

At this point I honestly wouldn’t bother to consider, let alone recommend someone else, a foreign broker based on costs and fees.

There may be other factors for choice of broker. Less likely though if you’ll be staying in Switzerland though, you’ll merely be using it as additional diversification to your IBKR account.

…which it isn’t on the accumulating ETFs mentioned. :wink:

Even if they were not accumulating, I don’t think the costs justify worrying.

You’ll pay a currency conversion margin of about 1.5% (as per Neon Invest FAQ), as well as about 0.5% if you decided to reinvest the dividend (let’s disregard stamp tax for simplicity’s sake). So… approximately 2% cost on reinvesting the dividend.

Based on an approximate dividend yield of 2%, that’s a 0.04% yearly drag on your overall portfolio investment. Or about 1% difference over a 20 year (or so) period - less than a single day’s movement in the ETF’s price.

Are you going to worry about that?

1 Like
5

Thanks everyone for your answers!

@skyw4lker As far as I understand, this does not apply, as the ETFs are accumulating.

@Dr.PI There wasn’t a thread comparing them. The other threads are about either Neon or Degiro. But if the topic fits better in another thread, I don’t mind it being merged. Although I often find it difficult to find relevant information in long threads. When I google for “Neon vs Degiro” this thread is my second result. So at least if I am not the only one having this question and if we arrive at a good conclusion, this thread seems useful to me.

@San_Francisco I already have an account with both Neon and Degiro. Therefore there’s no extra effort in choosing one over the other.

Also I’m mostly asking because I don’t know what I don’t know. Maybe I am missing something. Maybe the ETFs offered by Neon are not as attractive as what I can get with Degiro. As far as I understand the Neon fee of 0.5% (plus 0.150% stamp duty) has to be paid on buy and sale, so it amounts to 1.3% in total. It’s still not that much if we look at the long term. If I understand correctly, for buying ETFs with Neon, I get an interbank exchange rate, so that also sounds very good.

6

Yes, my bad, and as also pointed out correctly by @San_Francisco.

7

There is an article on moneyland: Neon Invest unter der Lupe - moneyland.ch

2 Likes