«ETFs have become a part of my DNA,» laughs Nima Pouyan. For over 15 years, they’ve been central to his life. Nima Pouyan heads Invesco’s institutional business and ETF division in Switzerland and Liechtenstein.

Nima Pouyan (Image: zVg)

Pouyan previously worked at Deutsche Bank, where he served as Vice President responsible for passive investment product sales in Switzerland and the Middle East, following leadership roles at DWS and Deutsche Bank Wealth Management.

Strong Growth Expected in the Next Five Years

Pouyan has overseen Invesco's ETF business in Switzerland since 2017, when the selection of ETF savings plans was still quite limited. Invesco was among the first providers in Switzerland (alongside Neon). At the time, fees on small investments were disproportionately high. Nowadays, however, low-cost ETF savings plan providers are becoming more common.

While most people in Switzerland still primarily hold their money in personal or savings accounts, ETF savings plans have long been the dominant wealth-building product in much of Europe. By the end of last year, there were around 7.6 million savings plans, with projections suggesting this could grow to 32 million within the next five years.

Germany driven by high acceptance among retail investors and increasing competitive pressure among brokers is by far the largest market. Additionally, it offers increasingly affordable and flexible savings plans. Platforms like Trade Republic, Scalable Capital, and Sparkassen provide ETFs with low-cost structures, facilitating access for a broad investor base.

Swiss Market Poised for Massive Growth in the Next Three Years

Pouyan predicts a significant boom for ETF savings plans in Switzerland. Within the next three years alone, he expects the number of plans to exceed 500,000.

Two factors drive this growth: first, investors are increasingly inclined to manage their own investments, and second, cash balances in Switzerland remain high. «In Switzerland, cash reserves are two and a half to three times higher than in Germany and Austria,» Pouyan notes.

ETF savings plans are therefore gaining ground in Switzerland. The following trends are emerging:

• Most people start with monthly contributions of CHF 50, sometimes even CHF 10. However, after a relatively short period, most investors increase their contributions. «Once clients gain confidence in ETF savings plans, monthly contributions can rise to CHF 700,» Pouyan explains. Invesco reports an average contribution of around CHF 450, compared to an average of EUR 167 in Germany.
• The age group of 35 to 45 years old comprises the highest savings contributions. Younger savers often initially focus on shares of well-known companies, such as Tesla or Nvidia, or on cryptocurrencies before opting for an ETF savings plan.

Growth in ETF savings plans is accelerating. «Within a year at the latest, they’ll be impossible to ignore, having firmly established themselves in the Swiss market,» Pouyan asserts confidently.