Simple recurring Buy and forget Vanguard world all cap

Investing / Brokers
1

Hello,
My sister lives in Switzerland and she’s allergic to paperwork and money processes.
She wants to have regular investments in a buy and forget mode by direct debit.

I thought about VT ETF but would have preferred a CHF denominated ETF for her
Accumulating would also be better.

Any ETF and Broker to advise for this specific scenario?
(open to mutual funds also)

Thanks and regards

2

What monthly of amount are we talking to ?
If she did not open it yet, she could have a retirement 3rd pillar accounts with an online provider (Viac, FinPension) which is similar of ISA account in UK.

Based on your strategy the investement will be automatic for 500 chf a month or so.

1 Like
4

SmartBroker can do that, except for the Direct Debit. You can make a standing order in EUR though. It’s really set and forget.

Edit: Forgot about the CHF part, but it’s irrelevant from a performance perspective.

5

I‘d recommend you ease up on that restriction. If anything, CHF-denominated ETFs are rare on All-World equity. They will most probably be domiciled in Switzerland and therefore not very tax-efficient.

What you may want to look for are Irish ETFs. Most of them can legally be distributed in Switzerland and many will include Swiss retail customers as their official „target audience“. They will probably be denominated in USD but could traded/bought in other currencies, such as EUR or maybe CHF.

4 Likes
6

Hello Bob,

There is another thread on the forum why are there no ETF savings plans in Switzerland?. In summary Switzerland probably lags behind some other countries in respect of such offerings.

Of course she could ask a bank like UBS or CS.

Assuming she does not want to do this then here are 2 ideas:

(1) Pay a service provider like Truewealth or Selma. There are reviews of their services online.

They charge in the region of ~0.50% of assets. In your sister’s case perhaps this a fair fee for a service received

(2) Interactive brokers recently enabled recurring investments - on USD assets at least - and auto currency conversion. This will almost certainly be the most cost efficient option

I am not sure if it is possible for CHF ETFs but after initial set up she should be able to transfer CHF each month and buy the US listed version of VT

In settings she can set her account default currency as CHF so all her reports show in CHF - which helps for swiss tax return etc.

However set up in Interactive Brokers requires some patience. I would say this is only an option if she is prepared to do some work or perhaps if someone can help her.

=====

Above all: she should be wary about the self proclaimed “financial advisors” who cold call UK expats and offer “tailored solutions”. They usually peddle products involving attractive sales commissions

7

Interactive Brokers account belonging to one person can be managed by another entity (person, financial advisor, introducing broker). If you are ready to invest some time to help your sister, it is possible to set up an account for her managed by you, set up recurring incoming transfer from her bank account into her IB account. The trading can be done by you or via recurring investments, although some checking will be needed.

2 Likes