Why ETFs in a pillar 3a solution?
ETFs and other index funds aim to identically replicate an index such as the SMI or Dow Jones. For private investors in particular, they are an attractive asset class whose advantages are fully leveraged in the pillar 3a:
- Low fees: ETF and other index funds are cost-effective because unlike traditional, actively managed funds, they do not require any expensive fund management
- Protection in the event of insolvency: money invested in index funds remains the property of the investors even if the issuer becomes insolvent
- High level of transparency: you can see where your money is invested at all times
- Diversification: ETFs and other index funds invest in various different regions, countries, sectors, themes and asset classes, which lowers risk