ETF Investing for Beginners: How to Start with CHF 100 per Month

CHF 100 per month × 30 years × 7% return = CHF 113'000. Yes, really.

Sounds wild? It isn't: that's compound interest at work. The most powerful tool for building wealth – and ETFs are the simplest way to get there.

If you've just started your first job, have a few hundred francs to spare, and you're wondering "how do I actually do this investing thing?" – this guide is for you. No crypto, no day trading, no rocket science. Just: simple, safe, effective.

What is an ETF? (The ultra-simple explanation)

Imagine you want to buy shares. First instinct: buy one stock, like Nestlé. But if Nestlé publishes a bad report tomorrow, you lose money. On your own.

The smarter idea: instead of buying one stock, buy the whole supermarket.

An ETF (Exchange Traded Fund) is exactly that: a basket of hundreds or even thousands of shares. Instead of buying Nestlé on its own, one ETF gives you a slice of Nestlé, Roche, UBS, Apple, Samsung, Mercedes, Google, and 1'500 others – all at once.

The result: - If one stock falls, it doesn't matter much – the others hold things up - You don't need to analyse every company like a stock guru - Your risk is massively spread – what investors call diversified

That's the whole trick. Full stop.

Why ETFs are ideal for beginners

There are many ways to invest money – property, individual shares, crypto. But for getting started with small amounts (CHF 100–500 per month), ETFs are hard to beat:

1. Broadly diversified A single ETF can hold 1'500–3'000 companies. The chance of losing everything is practically zero. That's not the case with individual shares.

2. Low fees The so-called TER (Total Expense Ratio) on good ETFs is between 0.07% and 0.22% per year. On CHF 10'000, that's about CHF 7–22 per year. A bank advisor buying individual stocks for you would cost CHF 200–300 per year. Or more.

3. No stock-picking required You don't need to know whether Microsoft or Apple will do better. The ETF simply tracks the MSCI World Index – and when the global economy grows, your ETF grows with it. Done.

4. Historically proven returns Over the long term (20–30 years), stock indices like the MSCI World have returned an average of 7% per year. That might not sound like much – until you see what compound interest does to it.

Compound interest – your most powerful ally

Compound interest has been called the "eighth wonder of the world". That's not an exaggeration.

The principle: your gains generate their own gains. And the gains on the gains generate more gains. Exponentially. Over time.

Here are the real numbers:

Scenario 1: CHF 100 per month (CHF 1'200 per year)

Years	CHF 100/month paid in	Compound interest gain	Total wealth
10 years	CHF 12'000	CHF 4'752	CHF 16'752
20 years	CHF 24'000	CHF 26'748	CHF 50'748
30 years	CHF 36'000	CHF 77'056	CHF 113'056

What does that mean? You paid in CHF 36'000 (100 × 12 months × 30 years), and your wealth grew to CHF 113'000. The gains outweigh your own contributions.

Scenario 2: CHF 300 per month (CHF 3'600 per year)

Years	CHF 300/month paid in	Compound interest gain	Total wealth
10 years	CHF 36'000	CHF 14'256	CHF 50'256
20 years	CHF 72'000	CHF 80'244	CHF 152'244
30 years	CHF 108'000	CHF 231'168	CHF 339'168

Scenario 3: CHF 500 per month (CHF 6'000 per year)

Years	CHF 500/month paid in	Compound interest gain	Total wealth
10 years	CHF 60'000	CHF 23'760	CHF 83'760
20 years	CHF 120'000	CHF 133'740	CHF 253'740
30 years	CHF 180'000	CHF 385'280	CHF 565'280

The key point: look at the compound interest gain column. The longer you save, the more time works for you – not just your money. After 30 years, the compound gain is more than 3x your own contributions.

So: the best time to start is now. Not tomorrow, not next month. Now. Every year of delay costs you tens of thousands.

Which ETF? The 3 most popular for Swiss investors

There are hundreds of ETFs. That's overwhelming. So here are the three you actually need:

1. MSCI World (the safe bet)

Example: iShares Core MSCI World UCITS ETF (USD) (ISIN: IE00B4L5Y983) - What it does: tracks 1'500+ large companies across 23 countries - Where the money is: 60% USA, 10% Japan, 8% Switzerland, rest Europe/international - TER: 0.20% per year - When to buy: if you want the whole world in one ETF

2. FTSE All-World (even broader)

Example: Vanguard FTSE All-World UCITS ETF (USD) (ISIN: IE00BK5BQT80) - What it does: tracks 3'500+ companies from developed and emerging markets - Where the money is: 55% USA, 10% Japan, 6% Switzerland, rest of the world including emerging markets - TER: 0.22% per year - When to buy: if you want maximum diversification, including emerging markets

3. SPI (for a Switzerland focus)

Example: iShares Core SPI UCITS ETF CHF (ISIN: IE00B0M63284) - What it does: all 200 major Swiss companies - Where the money is: Nestlé, Roche, Novartis, UBS, Zurich Insurance, etc. - TER: 0.10% per year - When to buy: if you'd like part of your portfolio focused on Switzerland

My simple recommendation for beginners:

If you only want one ETF: Vanguard FTSE All-World. Done.

That gives you: - 3'500+ companies - All major countries - Low fees - Zero ongoing decisions or fine-tuning needed

If you'd like a Swiss tilt (optional): - 70% Vanguard FTSE All-World - 30% iShares Core SPI

Honestly though: for your age (starting out, 18–30), 100% FTSE All-World makes complete sense. You have time on your side.

Where to buy? The best brokers for Swiss investors

Now the practical question: where do you actually buy the ETF?

You use a broker – a platform for buying and selling securities. Here are the four most relevant ones:

1. Saxo Bank

Fees: from CHF 0 per trade (no minimum fee above CHF 50'000 in assets, otherwise CHF 10–15 per trade)
Standout feature: very competitive, large product range, excellent interface
Best for: beginners investing a few hundred CHF per month
Downside: minimum fees when assets are small
Website: saxobank.ch

2. Swissquote

Fees: CHF 15–29 per trade (depending on amount)
Standout feature: Switzerland's largest online bank, good German-language support
Best for: Swiss investors who prefer a familiar, traditional-feeling bank
Downside: slightly more expensive than Saxo
Website: swissquote.com

3. neon invest (by neon)

Fees: free (yes, CHF 0 per trade)
Standout feature: extremely simple, mobile-first, automatic ETF portfolio rebalancing
Best for: absolute beginners who want everything automated
Downside: limited product range (around 100 ETFs, not 10'000)
Website: neon.ch/invest

4. Interactive Brokers

Fees: CHF 1–2 per trade (the cheapest option)
Standout feature: global market leader, enormous product range
Best for: experienced investors who want to minimise every franc of fees
Downside: more complex interface, English-language support
Website: interactivebrokers.ch

My recommendation for starting out: Saxo Bank or neon invest.

If you're investing regularly (monthly) in amounts of CHF 100–300, you'll pay minimal fees at Saxo (CHF 10–15 per trade). At neon invest: CHF 0, with a smaller selection – but for a FTSE All-World ETF, that doesn't matter.

Step-by-step: your first ETF purchase in 20 minutes

Enough theory. Here's how you actually get started:

Step 1: Open a broker account

Go to saxobank.ch or neon.ch/invest
Click "Open account"
Enter your personal details (name, address, email)
Identity verification: via video ident (5 minutes) or PostIdent
Wait time: usually 1–2 days, sometimes instant
Receive welcome email, save your login details

Step 2: Transfer money

Log in to your broker account
Go to "Deposit" or "Payments"
Transfer your first amount (e.g. CHF 100–500) to the broker's IBAN
Wait time: 1–3 business days
Money appears in your account

Step 3: Search for the ETF

In the broker app: search field (magnifying glass icon)
Type in: IE00BK5BQT80 (ISIN of the Vanguard FTSE All-World)
The ETF appears. Click it.
You'll see all the details: price, TER, performance

Step 4: Buy (savings plan or one-off)

Option A: One-off purchase (simple) 1. Click "Buy" 2. Enter amount (e.g. CHF 100) 3. Confirm 4. Done – you own your first ETF share

Option B: Set up a savings plan (better for the long term) 1. Click "Create savings plan" or "Subscription" 2. Enter amount (e.g. CHF 100) 3. Frequency: monthly 4. Start date: immediately or next month 5. Confirm – it runs automatically from now on

Step 5: Do nothing (buy & hold)

Close the app
Forget your ETF account for 10–30 years
Check once a year to watch your wealth grow
Enjoy

Yes, that really is all. Five steps. Done.

The 5 biggest beginner mistakes

You've got the basics down. Here are the five mistakes you should NOT make:

Mistake 1: Market timing

"The index is falling right now – I'll wait until prices drop further, then I'll buy cheap."

Nope. Professionals with 30 years of experience can't do that reliably. You won't either. The best time to buy is: now. Regularly, every month, regardless of where the market is.

Mistake 2: Too much trading

"Oh, this ETF looks great too! Let me reshuffle my portfolio every two weeks!"

Your enemy isn't "market crash" – it's "trading too much and racking up fees". Buy your ETF. Hold it for 10+ years. That's it.

Mistake 3: Panic selling in a crash

2020: COVID. Markets fall 40%. "Oh no, everything's gone! I'm selling everything!"

Don't. Anyone who sold locked in their losses. Anyone who held on profited. The market always recovers. Always. Not "probably" – always. (And if the world really does end, your money won't matter anyway.)

Mistake 4: Overcomplicated portfolio

"I'll do 40% MSCI World, 20% FTSE Emerging Markets, 15% SPI, 15% property ETF, 10% commodities ETF..."

Stop. You need one ETF. Maybe two. Done. Complexity doesn't bring you extra returns – it just brings headaches and fees.

Mistake 5: Not starting

This is the biggest mistake. "I'll wait until I've saved CHF 100'000. Then I'll start."

No. The later you start, the less compound interest works for you. CHF 100/month now is worth more than CHF 500/month in three years. Simple as that.

FAQ

How much do I need to start?

Most brokers have a minimum of CHF 0. You can start with CHF 50–100. A savings plan often starts from CHF 50/month.

Do I pay tax on ETF gains?

Yes. In Switzerland you pay: - Income tax on ETF dividends and distributions (varies by canton) - Wealth tax on your total assets (also canton-dependent)

The amounts are small, but you should talk through the details with your tax advisor. The main point: in Switzerland, ETF savings are very tax-efficient – much better than individual shares.

When should I sell my ETF?

Ideal answer: never. Or only at age 65+. A 20-year savings plan works wonders. Selling after two years destroys the whole effect.

If you need the money: sell as little as possible, as late as possible.

Accumulating or distributing ETF?

Accumulating: the ETF automatically reinvests dividends. Better for beginners, because you don't have to think about it.

Distributing: the ETF pays out dividends. Better if you want regular income.

For you (age 20–30): accumulating. Always.

What about CHF/USD currency risk?

Good question. The MSCI World is denominated in USD, not CHF. So if the franc strengthens, the "franc value" of your ETF falls slightly.

But: historically, over 20+ years, this matters much less than you'd think. The compound interest effect dwarfs the currency risk. And USD ETFs are often cheaper than CHF versions. Buy the USD ETF.

Your next step

You have the theory. Now you need the practice.

Do this today: 1. Go to saxobank.ch or neon.ch/invest 2. Open an account (takes 10 minutes) 3. Transfer CHF 100–500

Next week: 4. Buy your first Vanguard FTSE All-World ETF 5. Set up a savings plan (CHF 100/month is enough)

That's it. No rocket science. No crypto. Just patience, discipline, and time.

In 30 years, you'll thank yourself. I promise.

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