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ETF savings plan
According to a study by Blackrock, there were around 9.5 million ETF savings plans in Germany in 2024 and the topic is now also gaining momentum in Switzerland. This is encouraging, as ETFs are the cost-effective alternative to the well-known active funds offered by banks. As the fees are lower, ETFs keep more of the return in investors’ pockets on average. In this article, we show you the different types of ETF savings plans available and what you should look out for when choosing one.
THE MOST IMPORTANT POINTS AT A GLANCE:
«Free» ETF savings plans with a broker could be right for you if:
you have read up on ETFs and know exactly which ETF you want to save in
you would also like to invest in a few individual shares in addition to ETFs
you are interested in the financial markets, follow developments and are constantly learning more about investing.
you invest independently in a disciplined manner and do not fall for the lure of expensive financial products offered by brokers
ETF investment solutions with an asset manager are right for you if:
if you are looking for a convenient solution without having to take care of ETF selection and trading yourself
if you want to invest in a relaxed manner without having to follow the daily events on the financial markets
if you value professional guidance and relevant information instead of being bombarded with «hot» tips or adverts for expensive financial products
if you are looking for a partner who will support you in building up your wealth and will also help you through turbulent times on the financial markets
Index
«Free» ETF savings plans
The so-called «free» ETF savings plans offered by many online brokers (such as Trade Republic, Scalable Capital in Germany or Saxo in Switzerland) are particularly popular. The term “free” means that customers do not pay any brokerage fees for the purchase of ETFs as part of the savings plan and the broker manages the custody account with the ETF shares without any additional fees.
However, this does not mean that brokers do not earn anything with these “free” ETF savings plans. As a rule, ETF providers (e.g. iShares, Vanguard…) pay brokers a listing fee so that they are included in the offering (or displayed more prominently); brokers also receive a certain percentage as reimbursement for every franc that flows into the ETF.
This remuneration can lead to a classic conflict of interest for the broker: Should the ETFs that are most attractive to customers be offered, or rather those where the ETF provider pays the most?
In addition to the compensation paid to ETF providers, brokers also receive commissions for routing stock market orders to certain exchanges. This practice is called “Payment for Order Flow” (PFOF). As it is questionable whether customers’ stock exchange orders are really executed at the best price if some exchanges pay for the order volume, the EU has decided to ban PFOF. The ban must be implemented in all EU countries from mid-2026.
ETF investment solutions as alternatives to savings plans
In addition to ETF savings plans, ETF investment solutions are an ideal solution for regular asset accumulation. ETF investment solutions consist of a combination of different ETFs. In addition to equities, investments are often made in bond, property and gold ETFs. Thanks to this diversification across different asset classes, the risk diversification is better than with a pure equity ETF. In addition, individual regions are often mapped with specific ETFs on the equity side. This can reduce product costs and provides customisation options.
ETF investment solutions are usually offered by digital asset managers. You can find out the difference between asset managers and brokers below.
The provider of the ETF investment solutions will compile and select the various ETFs for you. This means that you do not have to deal with the ETFs and their selection yourself, but can rely on the expertise of the asset manager. In addition, the asset manager continuously monitors your investment solution and the financial markets and makes adjustments if necessary.For its service, the asset manager charges a fee as a percentage of the investment amount. As fees have a major influence on how much return you get in the long term, you should make sure that you don’t pay more than 0.5% of the investment amount per year. This corresponds to 5 francs per 1'000 francs invested annually.
The asset manager’s fee usually also includes an e-tax certificate (costs extra with many brokers) as well as advice via e-mail, chat and telephone. Some asset managers also offer free (online) calls.
An ETF investment solution with an asset manager is therefore effectively an ETF savings plan plus:
Combination of ETFs (put together by the asset manager)
Ongoing monitoring of the financial markets
E-tax statement for automated recording in the tax return
Advice and online meetings
Broker vs. wealth manager
To make an informed decision, it is also worth taking a brief look at the companies behind the ETF savings plans (brokers) and ETF investment solutions (asset managers). The business models differ significantly.
Broker
A broker earns money when customers trade. It is therefore more important to him that you trade a lot and not that you really build up assets.
Wealth manager
The wealth manager’s remuneration depends on the client’s investment amount. It is therefore important to him that your assets grow as much as possible.
Are you interested in the topic in more depth? Then we have prepared a detailed description of the distinction between brokers and asset managers for you here.
Flipping stocks makes for empty pockets
An old German proverb says «Hin und Her macht Taschen leer». It basically means, that frequent buying and selling has a negative impact on returns, as shown by various widely recognised studies, e.g. Barber/Odean (JoF, 2000).
There it is shown that private investors who hold shares directly pay an enormous performance loss for active trading. Out of 66'465 accounts with a large broker between 1991 and 1996, the private investors who traded the most realised an annual return of 11.4%, while the market returned 17.9%. Overconfidence may explain the high trading volumes and the resulting poor performance of individual investors. The central message of the study is that constant trading poses a threat to wealth.
What you should look out for
If an ETF investment solution is the right solution for you, you should pay attention to the following when choosing a provider:
Low, transparent fees (should not be more than 0.5% per year)
understandable, user-friendly product (it’s also best to check ratings in the app stores, on Google and on Trustpilot)
fast, personal support if you have a question
The convenient investment solution
You have all this and much more with findependent . Our investment app for everyone is already used and appreciated by almost 25'000 clients.
Ps: We don’t charge you any fees on your first 2'000 francs with findependent – unlimited in time. So you can try us out at your leisure and continue to save on fees later on.
FAQ
The most frequently asked questions and answers
What are the risks of investing? Can I lose money?
Investing always involves risks and market fluctuations. The value of your investments can decline, especially in the short term.
The good news is: in the long run, financial markets tend to rise. The longer your investment horizon, the lower the risk of a loss. That's why it's crucial to hold on to your investments even during crises and to not sell in a panic.
We don't rely on speculative bets but on a proven long-term strategy. Your money is widely spread across thousands of companies, industries, and regions. With such broad diversification, a total loss is virtually impossible. And so far, the markets have recovered from every crisis.
Is now the right time to invest?
Nobody knows - at least not for certain. No one can reliably predict how the financial markets will develop in the future. Consequently, the "perfect" times to get in and out only become clear in hindsight. Speculating on this often backfires, as you usually end up chasing market trends.
Instead, it's advisable not to wait, but to start investing as early as possible - regardless of how the market seems at the moment. After all, the longer your investment horizon, the significantly lower the risk of loss becomes. Plus, you benefit more from the power of compound interest.
Furthermore, it's advantageous in the long run to hold onto your investments through all market conditions. This is the strategy findependent follows. It requires perseverance during a crisis but ultimately leads to higher returns and minimized risk.
The best approach is to automate your deposits with a standing order. That way, you don't have to think about it and won't be tempted to speculate on market timing.
Who can open an account with findependent?
We welcome everyone who wants to invest with us in a straightforward way! However, there are a few formal requirements:
You must be at least 18 years old.
You must reside in Switzerland and be exclusively liable for tax here.
You must have a Swiss mobile phone number and a Swiss bank account.
Unfortunately, we do not currently offer investment solutions for legal entities such as companies, associations or foundations.
Who are findependent's investment solutions for? Is investing something for me?
Our investment solutions are for anyone who wants to make their money work for them in a simple, long-term way.
For beginners: You don't need a lot of money or financial knowledge. With us, you can start with as little as 500 francs, and we'll handle all the complex work for you.
For experienced investors: If you want to define your own strategy, you can create your very own investment solution from a selection of around 40 ETFs, starting from 5’000 francs.
A key principle: We focus on long-term wealth accumulation, not short-term gambling. Therefore, you should only invest money that you likely won't need for the next three years or longer.
What is the difference between findependent and a broker like Swissquote or Saxo?
The main difference in one sentence: With a broker, you have to do everything yourself; with us, you get an all-inclusive, hassle-free package.
A broker (e.g., Swissquote or Saxo Bank): For the DIY investor:
You choose, buy, and sell all securities (stocks, crypto, etc.) entirely on your own. This gives you maximum freedom but also requires a lot of time, knowledge, and research. Ideal if you want to trade actively and bet on individual stocks.
findependent: The all-inclusive package:
You simply deposit money, and we take care of the rest. We create a professional, broadly diversified investment solution for you and monitor it. Ideal for long-term wealth accumulation without having to constantly worry about the markets.
The best of both worlds: Your custom findependent solution:
Want more say? Then build your own personal investment solution from our selection of around 40 pre-selected, high-quality ETFs. You benefit from our expertise while still having the freedom to set your own priorities.
You can find more information about the differences on our information page.
