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Old 05.02.2020, 07:31
uwiss uwiss is offline
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Re: Yova - seeking online invest. insights

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And I'm perplexed.

You both seem to be aware of IB and the advantages that it brings to you as an investor, but at the same time prefer to neglect the effect of compound interest on your savings.

No sane individual investor should invest in products which cost north of 1%. Sure, this is a miniscule amount at 1000 CHF, but I don't want to retire with 1000 CHF in savings. I want at least 2'000'000 CHF and sure as hell I'm not willing to pay 20000 CHF/year to have some basic software algorithm passively manage that.

If you decide for a manager who takes >1% of your money, he'd better have a bulletproof track record. There's really only a handful of managers in the entire world who can consistently beat the market.

Sure, I'd be OK to give my 1% to Renaissance, Two Sigma or D.E. Shaw, but thats a whole other league.

And on to ESG-screened investment - there's no proof that individual investors avoiding low ESG stocks have a) better returns b) any influence on the companies. Stock market is a secondary market, you are not financing the company directly. Better to go plant a tree or something, it is guaranteed to have more enviromental impact.
To be fair: From 500'000 CHF Yova only takes 0.6 % per year. Yova is for people who care about how their money is used. And I tried out IB, itís completely unusable for a casual investor in my opinion. Truewealth on the other hand, has a good user interface.
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