Investing
Investing in Switzerland: broad ETFs, domicile and fees
A plain guide to a low-cost portfolio from Switzerland: why broad index funds, how fund domicile affects withholding tax and what fees do over 30 years.
Small amounts grow large when returns earn returns. Costs compound too, in the other direction.
After 30 years your CHF 190’000 could grow to CHF 555’219. Fund costs take about CHF 32’969 of that along the way.
Amounts are not adjusted for inflation. At 1 % inflation a franc in 30 years buys about a quarter less.
| Year | Paid in | Value |
|---|---|---|
| 0 | CHF 10’000 | CHF 10’000 |
| 5 | CHF 40’000 | CHF 48’273 |
| 10 | CHF 70’000 | CHF 99’733 |
| 15 | CHF 100’000 | CHF 168’924 |
| 20 | CHF 130’000 | CHF 261’954 |
| 25 | CHF 160’000 | CHF 387’037 |
| 30 | CHF 190’000 | CHF 555’219 |
Estimates for planning, not advice. Use at your own risk. Read the full disclaimer
Final amount = start × (1 + r)^n + monthly saving × ((1 + r)^n − 1) ÷ r, with r the monthly return after costs and n the number of months.
"Lost to costs" compares the result with the same return and no costs. More about costs in investing in Switzerland: ETFs and fees.
Context
Real index returns, before inflation and fund costs. Our default for stocks is 8.0% a year; the last two decades were stronger, and they included a 67 % fall in francs.
| Index | Period | Currency | Per year |
|---|---|---|---|
| S&P 500with dividends | 2006–2025 | USD | 10.9% |
| MSCI Worldwithout dividends (add about 2 %) | Oct 2016–Sep 2026 | CHF | 9.4% |
| Swiss equitieswith dividends | 2009–2025 | CHF | 8.5% |
Past returns do not predict future returns. Sources: chartrow.com, msci.com, pictet.com. Try these returns in the calculator →
No one knows the future. The section on the last 20 years shows what indexes actually returned; long-run averages are lower than the best recent decades.
A cost of 1 % a year compounds just like returns. Over 30 years it can take a fifth or more of the final amount.
No, this tool shows amounts before inflation. Use the inflation tool to see what they would buy.
Investing
A plain guide to a low-cost portfolio from Switzerland: why broad index funds, how fund domicile affects withholding tax and what fees do over 30 years.
The numbers
Your savings rate, not your salary, decides how many years you need. A table from 10% to 80% shows 66 years at the low end and 6 at the high end.
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