Help me pick ETF from SwissQuote

Investing / Portfolios
46

So guys, after reading over and over everything I decided for now to stay on SwissQuote, as at the end, going on IB would save me some money for sure, but no that much money to justify going with them.

I’m still torn between: ETF in USD or in CHF, on SIX or LTE.

So I’m down to 3 ETF to choose from:

EIMI (IE00BKM4GZ66, accumulating, USD on SIX, 0.18 TER)
+
SWDA (IE00B4L5Y983, accumulating, USD on SIX, 0.2 TER)

VWRA (IE00BK5BQT80, accumulating, USD on LTE, 0.22 TER)

ACWI (IE00B44Z5B48, accumulating, CHF on SIX, 0.40 TER)

So it will be one of these, and I will probably put directly 150k in it, or as lump sum, or as 75k first and 75k over the next 3-4 months.

I would also need to figure out, in case I pick USD, what is the best way to exchange CHF to USD (too much money for revolut).

What are your final thoughts? If you were me, which one would you pick?

Thank you all one more time!

47

Let’s assume you invest 150k now and 2k/month for the next 20 years.

Chosing SwissQuote with a IE-domiciled fund over IBKR and VT will cost you at least 0.10% in TER difference and 0.20% in non-recoverable dividends. So a total of 0.30% performance drag per year (ignoring the much higher fees with SQ).

So let’s assume 6.0% for IBKR and 5.7% for SwissQuote. After 20 years you are looking at 1388k and 1330k, so a difference of CHF 60’000 (+ fees).

If that isn’t a lot of money saved I don’t what it is.

48

Pick that one now, and in one or two year, you’ll probably switch to IB and VT :slight_smile:

edit: my personal experience is that it took me a few years to get things where they are now (at this point it’s fairly stable having changed allocation for years). Get invested optimize later, also easier to make mistake at the start, they’re less costly.

3 Likes
49

When exchanging larger amounts at Sq make use of the fact that for amounts >50k the forex fee drops a lot.

Screenshot_20200507-231618~2(2)
Screenshot_20200507-231618~2(2)906×1271 93.8 KB

1 Like
50

So paying 250.- for 50k while IBKR charges 2.-?

51

I would take VWRL in CHF on SIX and invest the interests payments in USD on VWRA

1 Like
52

Yep, but better than paying CHF 465 to exchange CHF 49k.
Or above 100k the % comes down a bit more.
I also personally use & recommend IB, but for someone fixed on Sq I find it useful info, and difficult to find.

3 Likes
53

Get VWRL in CHF.

  • No forex fee
  • the most “complete” ETF with low fee
  • Tax is really easy, just write vwrl, total amount, and total dividend of the year.
    ,2 minutes and 1 attachment. If you do something wrong the Tax-Man will correct it. ( yes, it’s true)
2 Likes
54

I’ll second this.

Also, I concur with djbabasil’s argument above that VWRL might be preferable over VWRA, cause there’s less currency conversion involved - as long as Swissquote does not charge a minimum fee on currency conversion or crediting of USD distributions.

For reinvestments, I’d still convert the distributed USD “back” to CHF to buy more VWRL (and not VWRA), just to keep it simple and neat. I wouldn’t worry or try to optimize for a 1.x% spread for currency conversion on a 2.x% yearly dividend yield (even with a million CHF worth of shares in VWRL, that’d be less than 20 CHF a month). Also, if he/she were to transfer the shares to another broker for whatever reason (prices hikes by Swissquote?), it’d be one position less.

2 Likes
55

Hello,

could you tell us what have you done at the end? FYI - in the meantime there was another one added which should match your requirements: Most cost-efficient European ETF - #8 by San_Francisco.