Thanks for taking the time to study my portfolio and also for your response:
You’re making a good point and I agree that a TER difference of around 0.05 % is probably not “measurable”. However, my reason for choosing the above portfolio is not only to TER- but also to tax-optimize. This brings me to your statement in the previous thread:
I read on the Mustachian Wiki and also on other websites that the withholding tax can make a difference of up to 1.00 % per year.
Assuming an investment of CHF 100’000.- with an expected return of 8% p.a. and the compounding effect of 20 years this can lead to quite some savings:
| Delta in Costs | Total Savings |
|---|---|
| 0.05 % | CHF 4’335.- |
| 0.10 % | CHF 8’708.- |
| 0.20 % | CHF 17’570.- |
| 0.30 % | CHF 26’589.- |
| 0.40 % | CHF 35’768.- |
| 0.50 % | CHF 45’109.- |
| 0.60 % | CHF 54’615.- |
| 0.70 % | CHF 64’289.- |
| 0.80 % | CHF 74’133.- |
| 0.90 % | CHF 84’151.- |
| 1.00 % | CHF 94’345.- |
In order to “unlock” these savings (even just the CHF 8’708.- with a cost difference of 0.1%) all I have to do is to find a combination of tax/ter optimized funds. From there investing in 6 instead of 1 funds is not too much of a hustle and the fee’s with IB are negligible. Isn’t that worth it?