• ETF fund savings are very popular with investors in many EU countries
• In Switzerland the trend is still in its early stages
• neon and Invesco are launching together ETF savings plans in Switzerland
A study by the comparison service Moneyland.ch on investor behavior in Switzerland suggests that the Swiss Confederation still has some potential in the retail segment as a market for exchange-traded index funds (ETF). According to this investment study, only 34 percent of those surveyed have invested money in ETFs.
In order to best reach this audience, the industry is now placing great hope in ETF fund savings. While ETF savings plans have long since developed into a significant investment trend in other European countries and have enjoyed notable successes in Germany and Italy, for a long time this investment option was hardly an issue here. But as “finews.ch” reported, the wave of fund savings plans is now also reaching Switzerland.
neon and Invesco launch ETF savings plans
“For a long time, Mr. and Mrs. Schweizer looked – often even with envy – at the investment opportunities in many of the EU’s neighboring countries,” a joint statement from the two financial companies Neon and Invesco is quoted as saying. “Now the wait is over.”
After the Swiss Post subsidiary Postfinance previously launched an offer and the US fund giant Vanguard also signaled corresponding ambitions, the Swiss banking app neon and the American asset manager Invesco are now jumping on the bandwagon and offering ETFs together -Savings plans in Switzerland.
Advantages of a savings plan
On its own homepage, neon lists various advantages why a savings plan is generally worthwhile: According to this, investors no longer have to worry about it after “making a smart decision”. Thanks to automation, you don’t forget to invest every month. A savings plan also helps you avoid trying to find the perfect time to invest. Various studies have shown that so-called “market timing” is rarely successful. It is better to regularly purchase stocks or ETFs and benefit from the cost averaging effect.
Cheap and flexible
With their new ETF savings plans, the two partners want to convince people with two main arguments: the price and the flexibility. This means customers can put together their own savings plan with several products as they wish. Monthly savings rates of just one franc are possible and you can withdraw at any time, although a sales fee will apply. Access to the savings plan is easy using the neon app.
The low-cost approach also makes the new offer attractive. This means that customers do not have to pay any custody, trading or foreign exchange costs. Only the product costs for the funds are incurred, which, according to “finews.ch”, are relatively low at less than 0.2 percent of the invested assets.
High expectations
With their new offer, the Swiss fintech and the US fund house with a branch in Zurich are particularly targeting younger customers who do not yet have much investment experience or who are afraid of high fees. “We are confident that with such offers we will see strong growth to 500,000 active ETF savings plans in the Swiss market in the next two years,” neon said optimistically.
Editorial team finanzen.ch