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Saving and investing with ETF

Key questions and answers

What type of securities are available?

Exchange Traded Funds (ETFs). Like conventional funds, ETFs invest in different securities and thus spread the investment risks. In contrast to traditional funds, ETFs track their benchmark index one-to-one and do not attempt to outperform it.

ETFs do not require an active fund management, which saves fees. They are usually both cheaper and more successful than conventional funds, whose performance often lags behind their benchmark.

ETFs are traded daily on an exchange.

What are ETFs?

Like conventional funds, Exchange Traded Funds (ETFs) invest in different securities and thus spread the investment risks. In contrast to traditional funds, ETFs track their benchmark index one-to-one and do not attempt to outperform it.

ETFs do not require an active fund management, which saves fees. They are usually both cheaper and more successful than conventional funds, whose performance often lags behind their benchmark.

ETFs are traded daily on an exchange.

If the ETF issuer or the custodian bank goes bankrupt, there are hardly any risks for the investors because ETFs do not fall into the bankruptcy estate but instead are treated as so-called special assets that remain in the possession of the investors.

Are synthetic ETFs also used for saving and investing with ETFs?

VZ mainly uses ETFs that are physically replicated. Synthetic ETFs are used when their overall benefits outweigh other ETFs (e.g. in the case of tax benefits).

Are my ETFs protected in the event of the issuer's bankruptcy?

Just like traditional investment funds, ETFs are legally separate assets. If the issuer or the custodian bank becomes insolvent, ETFs remain in the possession of the investors.

How do I define my investment strategy?

VZ Finanzportal allows you to define your strategy autonomously, supported by a questionnaire. Your answers lead to investment recommendations, which you choose to accept or ignore.

Can I change my original investment strategy?

Yes, VZ Finanzportal allows you to change your investment strategy at any time. You can adjust the weight of each asset class and replace securities. These adjustments are part of the weekly rebalancing of the portfolio and are free of charge.

What does rebalancing mean?

The weights of individual asset classes can shift unintentionally due to differing performance or cash inflows. As a result, they no longer correspond to the original investment strategy.

In a so-called rebalancing process, the asset classes are reset to their original target ratios defined in the investment strategy. If the tolerance threshold is breached, VZ Depository Bank rebalances the asset classes automatically and free of charge on a weekly basis.

Who is responsible for my investment strategy?

The account holder is responsible for selecting the appropriate investment strategy, for reallocations and for selecting securities. VZ Depository Bank recommends that customers review their investment strategy at least once a year.

When are cash deposits invested?

As a rule, deposits into your account are invested on a weekly basis if more than CHF 500 have been deposited since the last investment or since the account was opened.

Is there a minimum investment amount?

No, there is no minimum amount. VZ recommends an initial investment of at least CHF 5000.

What investment guidelines do I have to follow?

Customers are free to choose between five standard strategies with an equity share of 20 to 85 percent. Alternatively, they are free to make their own selection and divide their assets freely among the asset classes they wish to invest in. In both cases, liquid assets must amount to at least two percent of the investment sum.

Will my account balance earn interest?

No, there is no interest on liquid funds.

How much are the fees and what is included?

The annual fees amount to 0.55 percent of the invested assets. This is an all-in fee (flat fee). It compensates for all services such as account and custody account management, transactions, reporting, fund selection and monitoring, etc. Additional costs are only incurred for so-called direct orders (immediate orders). In contrast to the monthly strategy adjustments carried out free of charge, those costs are settled immediately at VZ Depository Bank's current e-banking rate.

The management fees for the ETFs and index funds are not included in the flat fee.

Are there accounts in foreign currencies?

No, all transactions are settled using an account in Swiss francs.

How can I access my securities account?

Immediately after submitting your application to access VZ Finanzportal, you will receive your login details by registered letter. This enables you to log into your securities account at any time and check the current asset value, information on the net yield and other data on your investments.

Are there any notice periods?

You can cancel at any time. Cancellations will be executed at the end of the month free of charge. If you wish to close your account immediately, transaction fees will be charged according to VZ Depository Bank's current e-banking tariff.