Hoi zäme! I have been actively investing in US ETFs through IBKR which works out quite cheap. Since I was getting started a year ago I didn't pay so much attention to either consistent investing or designing a fixed portfolio. At the moment I have 80% US(VTI, VO, VUG and VTV) and 20% non-US(IXUS) distribution. I do see the relative depreciation of USD against CHF for the last year and a lot of people talking about that lurking on this forum. Also, since I have somewhat of a stable income stream from my job now I want to nail this down(some version of VT and chill) and I am thinking of adding some home-bias in CHF to my portfolio.
The swiss market is quite small and I want to go with about 15% Swiss bonds too, to have a 45% US, 25% Swiss equities, 15% ex-US, and 15% Swiss bonds distribution in the end which in my opinion is a diversified portfolio and fits well with my risk appetite. That being said, buying Swiss equity or bond ETFs on SIX is very expensive with all Swiss brokers(0.3-0.5% per transaction?) and only slightly cheaper on IBKR(CHF 4-8 for 2-3 ETFs every time).
The other option I see is looking at EUR(on European exchanges, e.g. EXI1) or USD denominated alternate index funds (FLSW, EWL) that can be traded with relatively lower costs on IBKR circling back to the problem of currency value depreciation. Does anybody have a good illustration of how this option(investing in non-CHF with lower TER and exchange costs) weighs against performance from investing on SIX with CHF? The major, difference if any should come from the mid-cap industries in these indexes, right? What do I do with my insistent allocation to Swiss bonds?
TLDR: Does buying Swiss market ETFs in CHF work better than buying Swiss market ETFs in foreign currencies?
The swiss market is quite small and I want to go with about 15% Swiss bonds too, to have a 45% US, 25% Swiss equities, 15% ex-US, and 15% Swiss bonds distribution in the end which in my opinion is a diversified portfolio and fits well with my risk appetite. That being said, buying Swiss equity or bond ETFs on SIX is very expensive with all Swiss brokers(0.3-0.5% per transaction?) and only slightly cheaper on IBKR(CHF 4-8 for 2-3 ETFs every time).
The other option I see is looking at EUR(on European exchanges, e.g. EXI1) or USD denominated alternate index funds (FLSW, EWL) that can be traded with relatively lower costs on IBKR circling back to the problem of currency value depreciation. Does anybody have a good illustration of how this option(investing in non-CHF with lower TER and exchange costs) weighs against performance from investing on SIX with CHF? The major, difference if any should come from the mid-cap industries in these indexes, right? What do I do with my insistent allocation to Swiss bonds?
TLDR: Does buying Swiss market ETFs in CHF work better than buying Swiss market ETFs in foreign currencies?