For those who don’t know what ETF Sparplan is, it is a “savings plan” offered by a broker or a bank where you pay them a small fee (couple of euros per month or even FREE) so they invest AUTOMATICALLY every month a predetermined sum of your money into the ETF of YOUR choice. So it’s a great DIY solution for passive investors with extremely low costs, sometimes even zero costs (except the TER). It’s a very popular set-and-forget dollar-cost averaging wealth accumulating strategy amongst passive investors (Bogleheads for example).
JustETF is full of offers for ETF Sparplans in Germany. I know that there are plenty ETF savings plans in USA, Italy and other countries. However in Switzerland I wasn’t able to find such offer. I’ve contacted many Swiss brokers and banks and they just don’t offer it. Swissquote used to offer such a savings plan years ago but does not anymore. I wouldn’t mind paying higher transaction fees, just do it for me automatically every month like a standing order so I never have to do it manually and think about it.
Now you might ask what is the problem with investing MANUALLY into one ETF once a month? Well it takes away your precious time month after month, year after year investing in the same ETF. Why can’t I pay a broker or a bank to do it for me? The problem is also the fact that it’s not automatic therefore subject to people’s mood. The decision whether to invest each and every month is left to your weak mind. Before you tell me that we shouldn’t be weak, let me tell you that most people are not like you guys on this forum. I know plenty of friends and family who would benefit from such an automatic savings plan. Their investing mood changes from month to month depending on their financial conditions or some other expense that needs to be covered or you must have that new Iphone this month or big 4K TV, whatever. Not everybody is disciplined like a soldier to dollar-cost average no matter what. People are not robots and are emotional beings hence they often skip these monthly investments. This is detrimental to their returns and wealth accumulation over long run.
There are automatic options in Switzerland but they are ALL robo advisors. What’s wrong with them is that they’re geared toward inexperienced investors so THEY choose the investment strategy for you. You can’t choose the ETFs by yourself for example. You also can’t choose 100 % world equity strategy, there’s always some bonds, swiss stocks, gold… in the mix to “protect” you. And worst of all they charge you management fees for their advice so the total cost is much higher than your German ETF Sparplan.
I have 2000 chf each month that I want to invest automatically into one single MSCI World ACWI or FTSE All-World ETF. What are my options? Can Swiss residents invest with one of these numerous German brokers and banks that you can find on JustETF? I assume we can but what about cost of converting chf to eur each month? And what about the German taxes and double taxation issue?
I hope somebody sympathizes with me and offers some insight.