Exchange-traded funds (ETFs) are investment funds that can be bought and sold on the stock market. They usually track an index, such as a stock or bond index, a money-market, real-estate, or hedge-fund index, or a currency or commodities index. The main advantage of ETFs is that they are easy to buy and sell.
Want to buy ETFs? Open an account and start trading within 48 hours.
ETFs can track markets in one of two ways: physical replication (i.e., by directly holding the underlying securities) or synthetic replication (i.e., via derivatives that reproduce the performance of those securities). Although synthetic replication may seem riskier and less transparent than physical replication, it can be useful for tracking markets that are less liquid or that comprise a large number of securities. Most ETFs on Swiss markets use physical replication.
ETFs have a number of advantages, including:
Today there are many ETFs on the market for any number of investment strategies. For example, you could opt for an ETF that tracks an index like the SMI, Nasdaq, or S&P 500, or an ETF that tracks a specific sector, such as AI, gold mines, cybersecurity, or real estate.
ETF fees are typically very low, since these funds simply track a benchmark index and are not actively managed. Transaction fees are often similar to those for stocks.
Unlike unlisted funds, ETFs are traded continuously on stock exchanges, so you can easily buy or sell ETFs anytime during market trading hours.
The main risk with ETFs is a fall in the value of the securities whose performance the ETF replicates. This risk is much higher with leveraged ETFs, which use derivatives to amplify changes in their benchmark index. For foreign currency ETFs, exchange-rate risk should be taken into account. You should also pay close attention to tracking error, which occurs when the price movements of the ETF don’t align perfectly with those of the underlying asset. This is especially important when there is volatility in the market being tracked.
With TradeDirect, you can buy and sell a broad range of ETFs on a secure platform, including from leading issuers such as Swisscanto, UBS, Ishares, Vanguard, etc.
Here are just some of the ETFs you can buy on TradeDirect:
Our fees are low, and there’s no minimum order size or account balance.
| Swiss markets (1) and Xetra | US markets |
European markets (2) |
|
| Amount |
Brokerage fees CHF/EUR |
Brokerage fees USD |
Brokerage fees EUR |
| 0 - 500 | 3.90 | 3.90 | 10.90 |
| 500 - 750 | 5.90 | 5.90 | 10.90 |
| 750 - 1000 | 5.90 | 5.90 | 10.90 |
| 1 000 - 2 000 | 10.90 | 10.90 | 10.90 |
| 2 000 - 10 000 | 29.90 | 29.90 | 29.90 |
| 10 000 - 15 000 | 44.90 | 44.90 | 44.90 |
The order entry screen shows estimated fees for the transaction in question, but they are non-binding; only the final order confirmation is authoritative. If you have any questions about fees, please contact our Customer Service Center before placing your order.
1 - Fees for SIX Swiss Exchange. For unlisted investment funds, brokerage fees apply to purchases; sales are free. For certain unlisted funds, BCV’s standard fee applies. For the SIX Structured Products Exchange, the fee is capped at CHF 69.90 for orders above CHF 15,000.
2 - For Frankfurt Parkett, a fee of EUR 44.90 applies to orders between EUR 0 and EUR 15,000; for orders above EUR 15,000, the European market fees shown above apply.
Open an account and start trading within 48 hours.
