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Why does findependent rely on index funds (and not ETFs) for pillar 3a?
In pillar 3a, index funds have a few small but subtle advantages over ETFs. They have a positive impact on your net return.
No Stock exchange fees & stamp duties.
With the specialized pension index funds we use, we can reclaim foreign withholding taxes on dividends and interest. With classic ETFs, this unfortunately doesn't work in private pensions or only to a very limited extent.
Minimal management costs: The investment products of the so-called «Zero-Fee Class» in the standard strategies have effective ETF costs (TER) of 0.0 % (only exception: the Swiss real estate fund). Together with the management fees of 0.29 %, findependent is thus among the most affordable providers in Switzerland.
No currency conversion fees: With the index funds used, there are no fees for exchanging foreign currencies.
