Leonteq is definitely not a scam (doesn’t mean the can’t go belly up) and this ETP looks fairly sensible at a quick glance.
Edit: Maybe the point you heard was that some of their products are scams? I wouldn’t say that either (by definition of what a scam is), but they certainly have products only stupid uninformed people invest into.
Basically, as the name says, it tracks the SARON (Swiss Average Rate Overnight) - 0.10%, because that’s their administration fee. That’s the whole product. But with these low interest rates, it really doesn’t make a lot of sense nowadays.
Here they have all the information and factsheets available:
When I checked into it, it seems actually fairly safe (SIX is the counterparty iirc). Though being taxed on capital gains means you have a fair tax, but that’s more taxes than using an MMF with tax optimized holdings (tax yield below actual yield).
edit: the finma issue is about who they partner with for distribution, not about their ETP setups. (Tho it could hint at judgement lapses which isn’t a great look)
UBS recently listed an ETF that tracks the Saron rate (Product page). It compounds the daily interest rates and is traded on SIX. Could be an interesting product when interest rates rise again eventually. TER / management fee seems to be 0.1% p.a.
extra yield (at the cost of really small extra risk)
tax treatment (at least some ZKB funds were having taxable income much lower than actual yield, we’ll have to see what ictax thinks about the new fund, as a comparison the Leonteq ETP is taxed as capital gain)
Those are then likely very old legacy bonds or something. Some with negative yields also likely. That effect would certainly get lower and eventually disappear in the future.
I‘ll mqybe have a look at the holdings, if I come around.
edit: with yield going down again (globally), I’d expect there’s going to be quite a few options to optimize taxable return, I think the difference is that many MMFs don’t optimize for that at all, some even have a taxable yield well above the real return (I don’t know if ZKB does it intentionally though).
As per ICtax, that’s a OUIP, meaning that the capital gain at sale is taxable as income.
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