Swissquote - European vs US ETF

[AMEJ]

Hi Everyone,

I wanted to start with Swissquote and invest in an US ETFs, but the cost of the trading is quite high (I wanted to get VT). They have this flat fee (9chf) for some European ETFs (including VUSA, in CHF), so I was wondering if still it is better to pay the fee for the US ETFs or just go for the European one. Thanks.

 

[Baptiste Wicht]

Hi AMEJ

That's a good question. In the long term, it makes sense to pay higher fees to buy US ETFs, yes. The reason is that you pay transaction fees once, while you will lose the dividends every year (1.5% * 15%=0.225%). When starting, it's indeed difficult to see it that way because if you buy a few shares of VOO or VT, you will indeed see a massive difference. But if you are investing for many years and have a significant enough goal, it makes total sense to buy US ETFs.