What is True Wealth's investment approach?

At True Wealth, we follow a scientifically grounded, passive (i.e., index-based) investment approach, which we consistently implement for our clients. We develop your personalized investment strategy based on your goals and risk tolerance and keep you on track through all market cycles. Fully digital, completely transparent.

We deliberately avoid expensive, actively managed investment products that claim to beat the market. Numerous empirical studies have concluded that low-cost, liquid mutual funds generate better returns on average and after fees.

That is why we primarily rely on ETFs (exchange-traded funds) that track a market index. However, there are over ten thousand ETFs on the market, not all of which are suitable. We select the best ones for you. In doing so, we consider not only product costs but also market liquidity and the counterparty risk arising from the ETF’s structure. We also analyze how closely the ETF tracks the market index (known as tracking error) and consider the tax efficiency of the investment instruments to minimize withholding tax on dividends. Furthermore, we pay attention to the ETF’s trading currency to avoid unnecessary currency conversions from CHF to foreign currencies, provided this is advantageous overall.

In the retirement savings sector, we also use withholding tax-neutral index funds for tax reasons.

Find out more about our investment approach in the video podcast with True Wealth CEO Felix Niederer.