ETF investing from Switzerland: building a low-cost global portfolio
A robust Swiss ETF portfolio uses 2-4 broad UCITS ETFs (e.g. global developed equity, emerging markets, global aggregate bonds, optional Swiss equity) held at a low-cost broker (Saxo, Swissquote, Interactive Brokers, Degiro) inside a regular brokerage account, with a separate fund 3a (VIAC, finpension, Frankly) for the pillar 3a portion.
Overview
From a Swiss resident's seat, the EU-domiciled UCITS market is the default: huge selection, low cost, no US estate-tax exposure on death (relevant for non-US persons above USD 60,000 in US-domiciled securities). US persons follow a different rulebook - see the cross-border tax planning page.
Setting up your portfolio
- 1
Decide allocation by goal and horizon
Time horizon under 5 years: keep cash or short bonds. 5-15 years: 40-70% equity. 15+ years: 70-100% equity. Stress-test by imagining a 30-50% drawdown - if you would sell, dial equity down.
- 2
Pick 2-4 broad UCITS ETFs
A simple core: Vanguard FTSE All-World (VWRL/VWCE) or iShares MSCI ACWI for global equity; iShares Core Global Aggregate Bond (AGGH) for bonds. Optionally add a Swiss equity ETF (CSSMI, SLICHA) for home-currency tilt - cap at 10-20%.
- 3
Choose the right Swiss broker
Saxo Bank Switzerland and Swissquote are full-service Swiss brokers. Interactive Brokers (Ireland/UK entity) offers the lowest fees but is non-Swiss. Degiro Switzerland is cost-effective for small portfolios. Compare custody fees, FX spreads and ticket costs.
- 4
Reuse fund 3a for the tax-advantaged sleeve
VIAC, finpension and Frankly run low-cost (TER 0.39-0.48% as of 2025) 3a portfolios with up to 99% equity. Treat them as part of total allocation, not a separate bucket.
- 5
Automate and rebalance
Set a monthly purchase, rebalance when an allocation drifts more than 5 percentage points from target, and avoid trading on market noise. Most investor underperformance comes from behaviour, not products.
- 6
Mind the wealth-tax view
Securities portfolios are part of your taxable wealth. Distributions are taxed as income; capital gains for private investors are usually tax-free unless you are classified as a professional trader.
Frequently asked questions
Should I buy US ETFs or UCITS ETFs from Switzerland?+
Non-US persons resident in Switzerland should generally use UCITS - US-domiciled ETFs trigger US estate tax above USD 60,000 of US-situs assets and many Swiss brokers restrict US ETF access for retail clients under MiFID/KID rules.
How much should I keep in CHF assets?+
There is no perfect answer. A common Swiss bias is 10-25% in CHF assets (Swiss equity, CHF cash, CHF bonds) to match part of your future spending and dampen FX swings, with the rest globally diversified.
Are ETF capital gains tax-free in Switzerland?+
For private investors, realised capital gains on securities are generally tax-free; distributions (dividends, coupons) are taxable as income. Accumulating ETFs still report taxable distributions even when reinvested.
Do I need to declare foreign brokerage accounts?+
Yes - all foreign securities accounts go on the Wertschriftenverzeichnis in your Swiss tax return, with year-end value and gross income. Switzerland already receives CRS data on most of them.