What Swiss RE Funds do you consider “good”? This in terms of TER, Agio, Debt Ratio and Segment? The challenge is that I struggle to find ideal candidates for Investment - so appreciate your inputs here.
What other, interesting RE Funds do you identify? Most of them are too expensive or come with toxic agio / dis-agio I think… if I followed this analysis, I would invest my money in two funds that were just listed a few months back - don’t really like this conclusion…
There is a VT and Chil option (which is what I do right now)… just buy the market. But unlike Shares, I don’t think that this market was fully efficient and Indexing the right approach…
My idea is to have diversification across funds & also across the Switzerland geography to spread the investments.
I am only looking at three things
am I comfortable with % of commercial real estate. On average don’t want to have more than 30% across RE portfolio
am I comfortable with final yield. TER% is less relevant because what matters is what we get at the end as yield. I think DPRF has lowest yield but it also has highest residential exposure. I think we have to expect lower yields for residential
I think I have to assume that market participants are paying right AGIO. This is most difficult to judge but I don’t have a better way than to trust market participants
For taxable accounts -: Direct ones make more sense or else a lot of income is lost in taxes.
For pension accounts -: I think indirect might be better as they are much larger
The tax value of that ETF is discounted by about 40% (per end of 2023) and 43% of this year’s dividends were tax free. I guess that about 40% of the ETF’s holdings are direct Swiss RE funds but haven’t checked the holdings in detail.
I don’t know about you, but for me I actually don’t want to be too diversified geographically, I still want to mostly track real estate in the region where I live (so not really interested in how the NW Switzerland or Lemanic arc will evolve).
Thanks for this post!
I am looking to add REITs to my portfolio as a diversifier (approximately 10% allocation of portfolio).
Do you think the two REITs Helvetia Swiss PF and ZIF Immo Direct CH are any good? They seem not to be too pricey. As an alternative I am looking on SRECHA (much better diversification), but I am not very sure yet.
At least they offer like 2% fix net income (saving of wealth tax and deduction of TER). The old buildings in ZIF might be a good opportunity if they renovate them. What do you think? I am not sure since these funds are very young right now. Long term I expect around 5% yearly in CHF. Later I might use this money to buy some property for myself.
Can you recommend something else? What do you think about my plan?
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