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ETF Savings Plan
A standing order that regularly (typically monthly) invests a fixed amount in an ETF — the most common form of long-term, diversified wealth building for private investors.
The basics
An ETF savings plan applies the classic savings-plan principle to exchange-traded index funds. Instead of committing a lump sum, the investor puts a fixed amount — usually monthly — into one or more ETFs. The result combines automated wealth-building with the broad diversification and low costs of index funds.
In the DACH region, the ETF savings plan is now widely seen as the simplest, cheapest way for retail investors to build wealth over the long run. Trade Republic and Scalable Capital alone run several million active plans between them.
How to pick the right ETF
Five points matter in practice: a broadly diversified global index (MSCI World, FTSE All-World or MSCI ACWI cover between 1,500 and 3,000 companies); a low TER between 0.07% and 0.30%; the replication method (physical is more transparent, synthetic can be cheaper); accumulating vs. distributing (accumulating funds reinvest dividends automatically); and a fund size above €100 million to reduce the risk of closure.
A concrete scenario: a 25-year-old saves €200 a month into the iShares Core MSCI World UCITS ETF (TER 0.20%) at Trade Republic, with the savings plan executed free of charge. Assuming a long-term real return of 6% per year after inflation, by age 65 — after 40 years of saving — the portfolio would be worth roughly €390,000 in today's purchasing power, against total contributions of €96,000. On realised gains at sale, 27.5% KESt is due in Austria.
In Austria the tax status of the fund also matters: if the ETF is not reporting status under Austrian InvFG rules, lump-sum estimated values apply — usually less favourable to the investor.
Common questions
Which brokers work well in Austria? Trade Republic, Scalable Capital, Flatex, Erste Bank (George) and DADAT all offer low-cost or free ETF savings plans with automatic KESt withholding.