Invest in low-cost index funds. That’s the financial equivalent of “eat your vegetables” – boring, but undeniably good for you. But finding those truly-cost options can be tricky here in Finland where you don’t have access to Vanguard index funds.
Why Nordnet?
Nordnet is not the cheapest option there. It’s quite pricey. But it has a secret weapon for Finnish investors: they handle your taxes. That peace of mind is worth its weight in gold.
The Monthly Savings Hack
Use Nordnet’s “Kuukausisäästösopimus” (monthly savings plan) to buy ETFs every month with minimal fees (just 2.5€ per month). It allows to you to bypass the 15€ fee that would normally have to pay to buy ETFs. You don’t even have to stick to it every month. I top up my account quarterly and use the monthly plan then.
| ETF | Expense Ratio |
|---|---|
| iShares Core MSCI World UCITS ETF USD (Acc) | 0.20% |
| iShares Core S&P 500 UCITS ETF USD (Acc) | 0.07% |
| Amundi MSCI World V UCITS ETF Acc | 0.12% |
Index Funds as an alternative
You can also go for their index funds, which don’t charge fees when you add money and are a bit simpler to use. The bad news? Higher annual fees.
| Index fund | Expense Ratio |
|---|---|
| Nordnet Maailma Indeksi | 0.30% |
| Nordnet USA Indeksi1 | 0.25% |
| OP-Maailma Indeksi | 0.39% (0.35% bonus2) |
The Real Cost of Fees
Fees can make a big difference in how much money you can make from an investment. Here’s how a 1000€ investment grows over 10 years with a 7% yearly return:
| Annual fee percentage | Final amount | Total fees paid |
|---|---|---|
| 0.07% | 1954.32€ | 12.83€ |
| 0.20% | 1930.69€ | 36.46€ |
| 0.25% | 1921.67€ | 45.48€ |
| 0.30% | 1912.69€ | 54.46€ |
| 0.50% | 1877.14€ | 90.01€ |
| 1.00% | 1790.85€ | 176.30€ |
Disclaimer: This isn’t financial advice. Do your own research to make informed decisions.