Why One Global ETF Is Enough for 90% of Investors
You don't need a complicated portfolio with 20 different ETFs. For most investors in Switzerland, one single global ETF does the job.
It doesn't have to be complicated. For most investors in Switzerland, a single global ETF is all it takes – broadly diversified, low-cost, proven in performance.
What is a global ETF?
A global ETF tracks thousands of companies from around the world – in a single product. The best-known example is the Vanguard FTSE All-World (VWRL), which holds around 3'700 stocks from over 40 countries. With one purchase, you automatically own a share of Apple, Nestlé, Samsung, and thousands of other companies.
Why is one ETF enough?
The answer lies in diversification. When you're invested in 3'700 companies, it doesn't matter much if 10 or 20 of them perform badly. And because the ETF adjusts its weightings automatically, you don't have to do anything.
The 3 main arguments for the one-ETF approach
- Simplicity: no rebalancing, no complex management. You buy regularly and that's it.
- Low costs: a good global ETF often costs only 0.07%–0.22% per year (TER). That's a handful of francs on CHF 10'000.
- Proven performance: over 90% of actively managed funds fail to beat their benchmark index over the long term. An ETF is the index.
My ETF recommendation for Swiss investors
Two strong options for getting started:
- Vanguard FTSE All-World UCITS ETF (VWRL)
- iShares Core MSCI World UCITS ETF (IWDA)
Both are tax-efficient, have very low costs, and are tradeable on the Swiss exchange (SIX).
Where can you buy these ETFs?
I use findependent for automatic monthly savings plans and Saxo for individual purchases. With code KUU7NG at findependent, your first CHF 1'000 is fee-free; at Saxo there's a CHF 500 trading credit.
The bottom line
Just start. Start simply. One global ETF, a monthly savings plan – and time does the rest.