Are you comparing a DIY investor at SQ to one that uses the finpension robo advisor?
If so, I don’t think that’s a very fair comparison, as a DIY investor needs to manually do the transactions.
BTW: The SQ robo advisor has a management fee of 0.6%.
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We also offer reporting for the flat-rate tax credit (DA-1) of US withholding tax within selected ETFs. With a US dividend yield of around 2 % and a withholding tax of 15 %, the flat-rate tax credit generates a yield advantage of 0.30 % for you. Read on to find out whether your canton allows the lump-sum tax credit with our reporting.
This is what they write. I wonder how they will do that, without offering US etfs. DA-1 is not applicable for Ireland and Luxembourg etfs.
However: IF this is indeed true, than it would be a great offering. That basically would offset the robo-advisor fee of 0.39% and would make this a nice solution for the average investor.
DiY still better, but that‘s not for everyone.
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https://finpension.ch/en/invest-2/
It‘s not released yet but all the information is online.
I base the comparison on someone who wants to invest monthly in three ETFs, say 80% in a world ETF, 15% in bonds and 5% in real estate, rebalancing once a year. Which is not that uncommon a profile. And I compare how much having this automated costs.
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Do you have by any chance two portfolios, you are comparing? A robo one and a DIY one?
How‘s the performance?
I didn’t quite understand what this means … is it about L1TW or L2TW ?
I think that similar to a pension fund, if they guarantee that all customers are swiss based they might be able to get all the right paperwork.
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Would be interesting to see what is launched
The link that @Tony1337 shared was listing all IE ISINs for this US tax credit topic.
I am wondering if Finpension can provide reporting to reclaim L1tw then why individuals who own same ETFs cannot do so.
Very curious now 
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Equity indices are a mixed bag, honestly.
It might be a good option for fixed income products, which are difficult to get access to for small investors in Switzerland.
P.S. or maybe not 
.
Depends, 100% stocks or stocks/bonds mix?
For 100% stocks, you either simply go 100% VT, or do a combination of sub-regional etfs like VTI + VXUS or VTI + VEA + VWO. And for stocks/bonds, add bond etfs like GLAC to that.
The main advantage of a robo is that you set your allocation (or let the provider determine it together with you, i.e. with a questionaire for risk and goals) and then the robo keeps that allocation with automatic rebalancing and buys the stocks for you. You simply transfer money every month and that‘s it.
But essentiallly the return difference from a robo to diy, is the robo fee. So in this case 0.39%/year extra cost. And if your robo has only ucits funds and you cant reclaim withholding taxes, that‘s another 0.3% compared to the US etf diy method.
If comparing ucits diy vs. Robo, it‘s basically the 0.39%. But only with low cost providers like ibkr, that have essentially no cost.
Depends on the cost. For the majority of us, it‘s not interesting. But there are many average Joe people, that would mayber otherwise not invest. For them a hands-free solution, that they set up once and then just let it run, can be a good thing.
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Must be L1, there is no L2 for Ireland etfs.
But L1 is normally lost on fund level. I‘m very interested in what they plan to do here.
Maybe their USP really is that they’ve set it up in a way (US-based ETFs with TERs that are ~0.1% lower than European ETFs, the above-mentioned yield advantage of 0.3% for withholding tax) to offset their fees of 0.39%.
Otherwise they’d just be yet another robo advisor. From finpension I would expect some kind of twist to that formula.
They don’t use US based ETFs
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Provided that the “leaked” info is final, and not some long-outdated early draft.
I don‘t know what people expected? I think it‘s a great offer.
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Access to low TER institutional classes of index funds, for example.
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The problem is most likely people expected Invest offer to be in line with 3a offer or better offer
However the comparison is making it worse. I am not going to include the advantages of income tax deductions for 3a.
3a offer
0.39% Fees
0.0 -0.04% TER
Foreign dividend Tax advantaged funds (with 0% WHT in US)
Invest „leaked“ offer
0.39% Fees
0.08-0.15% TER
Standard funds (with probably tax credit to reclaim, to be confirmed)
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I am starting to feel , this leak is strategy of Finpension to get some customer feedback without actually launching the final offer
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