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ETF savings plans in Switzerland 2025: Your path to long-term wealth building
More and more people in Switzerland are relying on ETF savings plans in 2025 to make their money work for them. Instead of leaving savings sitting idle in a bank account with no interest, they are regularly investing in Exchange Traded Funds (ETFs) to protect their wealth from the eroding effects of inflation. In fact, an annual inflation rate of just 2% can significantly reduce the purchasing power of savings over time.
At the same time, interest rates on savings accounts are relatively low, making traditional saving almost unprofitable. The Swiss National Bank recently lowered its base interest rate to 0.5%, which has made traditional saving less appealing and encourages many investors to seek higher-yielding assets like shares and ETFs. Especially over long investment horizons, ETFs provide the opportunity for significantly higher returns than a savings account. Even with small monthly contributions, you can build a substantial wealth over the years.
An ETF savings plan thus combines disciplined saving with the earning potential of the capital markets – the ideal strategy to protect and grow wealth over the long term, despite inflation.
What is an ETF savings plan and how does it work?
ETFs (Exchange Traded Funds) are investment funds traded on the stock exchange. Their main goal is typically to closely mirror a specific stock index, such as the SMI or MSCI World. By purchasing a share of an ETF, you as an investor are effectively investing in all the securities within that index. This allows you to benefit from broad diversification, as a single ETF can bundle hundreds of shares, bonds, or other asset classes. ETFs are also very cost-efficient, as they are often passively managed, resulting in lower fees compared to actively managed funds.
An ETF savings plan combines these benefits with the regularity of saving. Instead of making a one-time large investment, you contribute a fixed amount regularly (e.g., monthly) to the savings plan. This money is then automatically invested in the chosen ETF or portfolio.
Of course, an ETF savings plan is still an investment in securities – price fluctuations and risks of loss are inherent, and you must be able to tolerate them. However, if you have patience and avoid panic selling during market downturns, historical data shows that you are likely to be rewarded with positive returns.
In practice, there are different types of ETF savings plans. Many banks or online brokers offer automated savings plans where you choose one or more ETFs, set your saving rate, and leave the rest to the technology. Such a "self-service" solution requires some initiative in selecting the ETFs but is highly flexible.
Additionally, there are expert-managed savings plans, often as part of digital wealth management solutions. In this case, a provider handles the portfolio composition, monitoring, and regular adjustments for you. Examples include investment solutions such as Managed by Alpian Essentials, which invest in more than just a single fund, offering a customised ETF portfolio solution. The advantage is that you receive professional support and a broad mix of ETFs, without needing to worry about rebalancing yourself.
Which option you choose depends on your level of knowledge and preferences – both approaches make investing in ETFs convenient and predictable.
Advantages of an ETF savings plan
An ETF savings plan offers numerous advantages compared to occasional investing or a traditional savings account:
Diversification: Even a single ETF spreads your investment across many stocks, sectors, and regions. This significantly reduces the risk of individual missteps. You participate in the development of entire markets, instead of putting everything on one bet. With a savings plan, you can even combine multiple ETFs to create a globally diversified portfolio, further spreading the risk.
Low costs: ETF savings plans are usually inexpensive. ETFs themselves typically have low management fees, with the Total Expense Ratio (TER) often below 0.2 to 0.3% per year. Additionally, new providers waive high custody or setup fees. Especially compared to actively managed fund savings plans, you save a lot of money over the long term. Lower costs mean more of the return stays with you as an investor.
Ease of use: Once the savings plan is set up, everything runs automatically. There is no need for constant monitoring. The regular purchases are handled by the provider. Therefore, you need little self-discipline to stay on track – investing happens almost automatically.
Low entry barriers: You can often start an ETF savings plan with small amounts. This means that even people with limited income can begin building their wealth early.
Flexibility: Savings plans are usually adjustable or can be paused at any time. You can increase, decrease, or temporarily stop the contribution rate if your financial situation requires it. Extraordinary deposits are also possible. The accumulated capital remains accessible – in case of emergency, you can sell shares and access your money (although this should ideally be avoided to prevent selling during poor market phases). This flexibility makes ETF savings highly adaptable to your life circumstances.
In summary, an ETF savings plan enables disciplined yet flexible wealth building. Even with small amounts, you benefit from the returns of large markets, keep costs low, and do not need to constantly manage your investments. These advantages explain why ETF savings plans – once a niche product – are becoming increasingly popular in Switzerland.
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Swiss ETF savings plans 2025 comparison
By now, numerous banks, neo-banks, and fintech companies are competing for the favour of Swiss customers with savings plan offers. However, a savings plan is not just a savings plan – fees, selection, and services can vary significantly.
Below, we compare some of the best ETF savings plan offers in Switzerland for 2025. This selection focuses on well-known and innovative providers, particularly those distinguished by low costs, a wide selection of ETFs, and user-friendliness.
Note: All information is based on early 2025 and may change at any time. When selecting a savings plan, always check the current conditions with the provider.
Tips for Choosing the Right ETF Savings Plan
Choosing a savings plan should be a well-considered decision that aligns with your personal goals. Here are some tips on what to pay attention to:
Define investment goals: First, consider what you want to achieve with your savings plan. Is it wealth building for retirement, financing a property in 10 to 15 years, or simply growing savings over the long term? The investment duration and target amount will determine which ETFs and strategies are suitable for you.
Determine risk profile: Be aware of your risk tolerance. How would you react if your portfolio loses 20% of its value in the interim? ETF savings plans come in different risk levels – from defensive (with a higher bond allocation) to aggressive (nearly 100% stocks). Your risk profile should match this mix. Many providers offer questionnaires or tests to assess your risk category.
Compare costs: Fees have a direct impact on your investment success. Therefore, pay attention to all cost points: account or custody fees, execution fees per rate, currency exchange surcharges (for foreign currency ETFs), and the provider’s management fee. The Total Expense Ratio (TER) is particularly important for ETFs – the annual total cost ratio of the fund. It includes all ongoing costs and is calculated as a percentage of the assets under management. Even small differences in TER can result in thousands of francs in returns over decades.
Flexibility and service: Check how flexible the savings plan is. The minimum investment and minimum savings rate should fit your budget. Can the contribution rate be adjusted or paused anytime? Are there costs if you terminate or sell the plan early? Ideally, you should remain financially flexible and not commit to long-term obligations.
In addition to these points, personal preferences may be decisive – such as the offering of sustainable ETFs, an app vs. web platform, or additional features like bonus programs.
Feel free to compare multiple providers using your criteria before making a decision. An ETF savings plan should suit you personally, so you can manage it with peace of mind for years to come.
Conclusion: ETF savings plans as a smart investment strategy for 2025
ETF savings plans have established themselves as a smart solution for long-term wealth building in 2025. They allow you to gradually build a broadly diversified portfolio and benefit from the growth of global markets without having to invest large sums all at once. Despite the broad diversification, ETFs are capital market instruments that are subject to market fluctuations – long-term thinking is therefore important.
If you are looking for professional management of your ETF savings plan, we recommend our Managed by Alpian Essentials ETF plan. This offering combines expert-managed portfolio management with low fees of 0.75% per year, about 40% cheaper than comparable solutions from traditional banks.
From an initial amount of CHF 2000, you receive a tailored ETF portfolio, which is regularly rebalanced and adjusted to your risk profile. You don’t need to worry about a thing; the investment team takes care of everything. For investors who value simple but professional wealth management, this is an excellent option.
