Zurich managed Savings Plans vs ETFs via Trade Republic/Degiro

T

TheJackal

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I've been investing in a Zurich actively managed savings fund since 2021, averaging 3.6% return. 1.5% AMC

I educated myself more since then and have been buying Vanguard ETFs on Degiro and Trade Republic.

Since 2022 my own Vanguard ETFs purcahsed from Degiro averaged 12% return. TER 0.07% and Degiro c. €1-€3 per transaction

I know past performance is no guarantee of future performance but am I right to just close my Zurich account at this stage. Both will have a 41% exit tax on profits.
Even switching to a fully equities fund with Zurich the 3 and 5 year annualised return has been nowhere close.
 
Surely a Zurich fund invested in MSCI World (their BlackRock indexed global equity fund) should have performed exactly the same as a Vanguard ETF that tracks MSCI World, when comparing pre-fees and on the same time period? Are you sure you're comparing like for like?
 
It sounds like you’re not comparing like with like.

Those investment strategies are different.

I have money with Zurich in an equity strategy and it’s done 32% over one year, 33% over three years, and 82% over five years.
 
If you want advice you have to provide all the information that's required so that someone else can give you an informed opinion. It's just not good enough to not disclose or omit everything that's relevant.

  • What date did you start the plan and are you contributing monthly only or was there a single contribution at outset
  • Why did you choose the (obviously) moderate risk fund/s on the original plan. Name the fund/s.
  • From the pricing it looks like you bought the plan with advice. My guess would be that you asked paul and he answered
  • Did you get 100% allocation or 101%
  • How are you calculating the 3.6% return. Is it before or after tax
  • What date did you start the Degiro plan
  • Are the levels of contribution the same
  • Why did you choose a 100% (Global?) equity ETF
  • What are the frequency of payments of the Degiro plan
  • How are you calculating the Vanguard return
  • What figures did you get when you compared the 3 & 5 year returns for both (completely different) products on 100% equity funds
 
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Yes, these are not like for like investments. I'm in their Balanced Fund. Most of my point was am I in the wrong product.

As of today, my account is Up 12.1% in 3 years 3 months so 3.7% average. Before 41% Exit tax
I'm not seeing the 6.4% annualised over last 3 years for my Fund per below - may be calendar year not rolling.

1711107137108.png

The Balanced Fund is an actively managed fund
Their Indexed Global Equity Fund(BlackRock) is here - this is the one I might switch too
1711107206497.png

The fund currently invests in the iShares Developed World Index Fund managed by BlackRock. The iShares Fund is passively managed and aims to track anindex, but may not track it exactly

So curently paying 1.5% for an actively managed fund that since launch has performed worse than their passively managed fund.

My logic then is if I'm going for a passively managed fund such as iShares Developed World Index Fund, why not avoid the 1.5% and set up a fee-free monthly auto ETF purchase with Trade Republic?
 
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