Investing & ETFs from Switzerland, for expats
Beyond pensions, a low-cost global ETF portfolio does most of the heavy lifting. The keys: keep fees low, pick the right fund domicile, and mind cross-border tax. Here's how to invest sensibly from Switzerland.
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Why low-cost ETFs
A simple portfolio of globally diversified index ETFs beats most active strategies over time, at a fraction of the cost.
Decades of evidence point the same way: broad diversification plus low fees is the evidence-based core of a serious long-term portfolio. An ETF that tracks a global equity index gives you a piece of thousands of companies across dozens of countries in a single line on your statement.
Your real cost is not one number - it's the sum of the fund's TER, custody/platform fees, currency conversion and trading costs. Two portfolios with the same underlying index can end up meaningfully different once every layer is added up.
Small percentage differences compound into surprisingly large sums over decades - which is why cost control matters far more than fund-picking. The investor who quietly holds a boring, cheap global ETF usually beats the one who spends years hunting for the "best" fund.
Fund domicile and tax - the expat bit
For non-US persons, Irish or Luxembourg-domiciled UCITS ETFs are usually the most tax-efficient and avoid US estate-tax exposure.
US-domiciled ETFs (the ones you see most in American press) can expose non-US investors to US estate tax on holdings above about USD 60,000, plus a 30% dividend withholding that is only partly reclaimable under the Swiss-US tax treaty. That's a lot of friction for a Swiss resident.
Irish-domiciled UCITS ETFs suffer only 15% US withholding on US stocks inside the fund and carry no US estate-tax exposure for the investor. Luxembourg UCITS are similar. For most non-US expats, that combination is why UCITS ETFs are generally preferred as the default building block.
US persons face the opposite problem. PFIC rules make non-US funds (including UCITS ETFs) painful and often punitive to hold. US persons typically need US-domiciled funds and specialist advice on their overall setup - see our guide to cross-border & US persons.
Where and how to invest
Pick a platform, keep the portfolio simple, and automate it.
Platform options in Switzerland run from Swiss banks (convenient, integrated, usually the priciest) to Swiss and neo-brokers (much cheaper, still Swiss-regulated) and international brokers (cheapest overall, but more admin at tax time). Compare on total cost, not just headline trades: custody, FX and inactivity fees usually dominate.
Hold your account in CHF since your life and liabilities are in francs. Individual ETFs will still hold assets in USD, EUR and other currencies - that's fine and expected - but your reporting currency should match the money you actually spend.
A one-to-three-fund portfolio is plenty: a global equity ETF, optionally a global bond ETF, and optionally a small home-CHF position. Every extra fund adds complexity without adding much diversification.
Automate monthly contributions so you invest through market ups and downs without thinking about it, and rebalance about once a year back to your target weights.
Pillars first, then invest
Fill your tax-advantaged pillars before taxable investing, then build the ETF portfolio on top.
Start by maxing pillar 3a for the immediate tax deduction - it's usually the highest risk-adjusted return an expat can get in Switzerland. See our pillar 3a guide.
In high-income or bonus years, consider a second-pillar buy-in for another meaningful tax deduction - as long as you won't need the money in the next three years.
Keep an emergency buffer of a few months' spending in cash before you deploy the rest, and let your time horizon - and whether you might leave Switzerland in the next few years - shape how much equity risk you actually want to take.
With those foundations in place, a low-cost ETF portfolio on a good platform is a system you can run for decades with very little effort.
How much do fees really cost you?
Compare a low-cost and a high-cost portfolio side by side and see the compounded difference.
High fees would cost you about CHF 38'911 over 25 years.
Illustrative only, as of 2025 - returns are not guaranteed.
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OpenInvesting & ETFs - your questions, answered
How should an expat start investing in Switzerland?
Usually by maxing tax-advantaged pillar 3a first, then building a low-cost, globally diversified ETF portfolio. Keep total costs low and choose a structure that travels well if you might leave one day.
Should I buy US or UCITS ETFs?
Non-US persons typically use Irish or Luxembourg-domiciled UCITS ETFs - they're tax-efficient and avoid US estate-tax exposure. US persons usually need US-domiciled funds because of PFIC rules, and should get specialist advice.
What is US estate-tax exposure?
Non-US investors can be exposed to US estate tax on US-domiciled assets above roughly USD 60,000. Holding Irish-domiciled UCITS ETFs instead avoids this while still giving global exposure.
Where do I buy ETFs from Switzerland?
Through a Swiss bank, a Swiss or neo-broker, or an international broker. Convenience and cost vary a lot, so compare total fees - including custody and currency conversion - not just headline trading costs.
Do fees really make that much difference?
Yes. Because they compound, a one-percent difference in annual costs can cost tens of thousands of francs over a few decades. Our calculator shows the impact for your own numbers.
I'm a US person - what changes?
A lot. US tax rules (PFIC) penalise foreign funds like UCITS ETFs, so US persons usually need US-domiciled funds and a PFIC-aware setup. Get advice before investing.
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