More than 5'000 children's portfolios already opened – High demand for long-term wealth accumulation for children

Press Release

Zurich, April 14, 2025

Since its launch in September 2023, over 5'000 ETF-based children's portfolios have already been opened at True Wealth. The high demand shows that parents are increasingly turning to long-term, cost-efficient investment solutions for their children.

In September 2023, True Wealth became the first independent wealth manager to launch an ETF-based investment solution for children and young people. «The response confirms that our offering is very much in line with the times,» says Felix Niederer, CEO of True Wealth. «Around 50 percent of the accounts opened belong to children aged between zero and seven, with the youngest child not even a month old.»

The amounts invested vary widely, from a few thousand francs to over half a million per child. The numbers show that parents and relatives regard long-term capital investments as an attractive alternative to traditional savings accounts.

Financial education from an early age: Over 40 percent of 16- to 17-year-olds have their own login

True Wealth allows parents to provide their children with their own login. This gives children and young people the opportunity to view their assets and gain initial experience in making investment decisions. Across all age groups, almost 10 percent of parents have given their children a login. Among 16- to 17-year-olds, this figure rises to over 40 per cent.

«We are particularly pleased about this development because it shows that parents are not just saving for their children, but are also actively involving them in financial matters,» explains Niederer. «The earlier you develop a basic understanding of investments, the better financial decisions you will make later.»

Oliver Herren adds: «The experience of volatile market phases with their temporary price slumps is extremely valuable for young people. This is how they understand what is meant by long-term risk premium.»

Wealth accumulation versus savings account – the better choice for children

Traditional savings accounts are becoming less attractive, especially in an environment of low interest rates and inflation. Today, interest rates on gift savings accounts range from 0.5 percent to a maximum of 1 percent. With a risky securities portfolio, a long-term return of 5 percent can be expected.

The long-term effect of a diversified ETF portfolio is clear:

If you invest CHF 10'000 in a broadly diversified children's portfolio, you will have around CHF 34'000 in capital after 25 years, assuming a net return of 5 percent. That is over CHF 20'000 more than you would have with a gift savings account with 1 percent interest, which would only yield CHF 13'000.

From children's portfolio to adult portfolio – a seamless transition

The first account holders have already converted their children's portfolios into regular adult portfolios – and seamlessly continued their investment strategy. This shows that young people also appreciate the simplicity of True Wealth's investment solution.

To make investing even more accessible for children, True Wealth is currently working on a new feature that will enable godparents, grandparents and other relatives of the child to initiate the opening process of a child portfolio directly.

Further information on children's portfolios can be found here.

About True Wealth

True Wealth was founded in 2013 by Oliver Herren, co-founder of Digitec Galaxus AG, and Felix Niederer, physicist and portfolio manager. The online platform has consistently automated all modern wealth management processes and offers customers domiciled in Switzerland a low-cost wealth management solution from an investment amount of CHF 8'500 or CHF 1'000 for children's portfolios and Pillar 3a investments.

The company manages client assets of more than 1.8 billion Swiss francs, spread over more than 30'000 clients.

The annual all-in wealth management fee is 0.25-0.50%, depending on the investment amount. The management fee for Pillar 3a is 0%.

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