First Swiss Provider Offers ETF Saving and Trading for Kids and Teensby Fintechnews Switzerland September 22, 2023
True Wealth is the first independent wealth manager to launch an ETF-based investment solution for children and young people.
The product extension is aimed at parents and relatives who want to make the benefits of long-term securities investment available to their children.
Launching the children’s portfolio
“After an extensive development and testing period, we are pleased to announce the birth of our newest baby: Portfolios for all children and young people up to the age of 17,”
says a delighted CEO Felix Niederer.
Parents can open a separate children’s portfolio for their offspring with an individual strategy and ETF as the building blocks of securities investment. The assets are held in a separate children’s account – in the child’s name.
The Truewealth company founders (Niederer and Herren) both family men, agree that there is a lot of catching up to do in terms of financial education in Switzerland and that a child portfolio can make an important contribution to closing this gap.
Long investment horizon
Anyone setting aside money for children should take their long investment horizon into account. With an investment horizon of up to 18 years, the advantages of a securities-based investment solution become particularly apparent: the longer the investment horizon, the more the relationship between risk and return shifts in favor of return when investing in the capital market.
It should also be borne in mind that although bank accounts offer an interest rate, this is almost always below the rate of inflation. For the long-term preservation of purchasing power, everyone should therefore consider making the advantages of ETF-based portfolio solutions available to their children as well.
Easy to get started
Existing True Wealth clients can open a separate portfolio for their child in their login area. However, True Wealth’s child portfolio can also be created without being a customer. The account must be opened by the legal representative, i.e. the mother or father.
Featured image credit: Edited from freepik