Building a Simple ETF Portfolio as a Swiss Investor

Asset allocation, home bias, currency, accumulating vs. distributing funds and rebalancing.

6 min read · Savings & Investing

Life situations: Investing and Wealth Building

You do not need a complicated portfolio to invest well. A few broad, low-cost ETFs cover most needs.

Decide your split

The main choice is the share in equities versus bonds or cash. More equities mean higher expected returns and bigger swings. A long horizon and stable income allow a higher equity share; a short horizon calls for more safe assets.

Pick broad funds

• A global equity ETF covers thousands of companies.
• Add Swiss equities for a modest home tilt if you wish.
• Use bond funds in CHF to match your spending currency.

Currency questions

Global equity ETFs hold assets in USD, EUR and other currencies. A strong franc can reduce returns, but hedging costs money and removes diversification. Many investors accept some currency risk in equities and keep bonds in CHF.

Accumulating or distributing?

Distributing funds pay dividends that are taxable income. Accumulating funds reinvest them; in Switzerland, accumulated income may still be taxed if reported as distributed. Check the fund's tax treatment.

Keep it going

Invest a fixed monthly amount and rebalance once a year or when the mix drifts by 5 points. Keep costs low and avoid tinkering.

See how steady investing grows with the monthly savings growth calculator.