Pillar 3a fund comparison 2026: the best retirement funds by cost and performance

A pillar 3a fund is an investment product within Switzerland’s tied pension provision (pillar 3a) that invests mainly in securities such as equities or bonds. Unlike traditional pillar 3a accounts, which pay interest at a rate set by the bank, equity funds offer potentially higher returns but also come with larger price fluctuations.

• Higher return potential: over the long term, equity funds can generate better returns than conservative investments.
• Tax advantages: contributions to pillar 3a can be deducted from taxable income.
• Diversification: investing across different sectors and regions reduces risk.

Over the past five years (as of 30 June 2026), products with a high equity share lead the field:

The BLKB IQ Responsible Equity World ex Switzerland returned 50.2 %, followed by neon Offensiv 100 nachhaltig with 44.6 % and neon Offensiv 100 with 44.1 %. Among the products with a genuine five-year track record, frankly Extreme 95 Responsible follows with 43.0 % and Descartes Index Responsible 100 with 40.9 %.

This ranking says little about the future. The combination of equity share and costs is more telling: two funds with the same equity share differ over the long term mainly in their fees, because costs are incurred every year for certain — and returns are not. So sort the comparison by total costs as well.

• Market fluctuations: the value of equity funds can vary sharply in the short term.
• Long investment horizon required: to smooth out fluctuations, the investment should be held for several years.
• No capital guarantee: unlike savings accounts, there is no guarantee on the capital invested.

When choosing the right pillar 3a fund, consider the following criteria:

1. Determine your investment horizon. How many years until withdrawal? That tells you how much fluctuation you can tolerate.
2. Set your equity share. It is the biggest lever for return and risk. With a horizon of over 20 years, high equity shares are common; under 5 years, rather low ones.
3. Sort by costs within that share. With the same equity share, the cheaper fund has the long-term advantage, because fees are charged every year and the return is not guaranteed.
4. Check one-off fees. An issuing fee of 2 % costs as much on entry as several years of running fees.
5. Look at past returns. They are an additional criterion alongside the four factors above.

Many pillar 3a providers invest your pension savings in index funds or ETFs that track major market indices such as the MSCI World or the Swiss Market Index (SMI).

In pillar 3a, tax-optimised index funds are often the better choice than ETFs. The reason: pension funds domiciled in Switzerland can partially reclaim withholding taxes on dividends, which improves the net return. With ETFs this is only possible to a limited extent.

Bottom line: for pillar 3a, index funds are usually more efficient and more tax-efficient than ETFs — even though many providers use the two terms interchangeably in their marketing.

The equity share indicates what portion of the fund’s assets is invested in equities. The rest is usually held in bonds and cash. It is also the biggest lever for return — and for risk.

In pillar 3a, up to 100 % equities are permitted. In the comparison, the range runs from 0 % to 100 %: 73 products sit at 81–100 % equities, 72 at 61–80 %, 73 in the middle range of 41–60 %, and 10 hold no equities at all.

A high equity share pays off above all with a long investment horizon. In the short term, the return can also drop well into negative territory.

Annual total costs in the comparison range from 0.13 % to 1.71 %. Passively managed index solutions are consistently the cheapest. Averaged across all pillar 3a investment strategies, True Wealth costs 0.15 % per year, finpension 0.39 %, VIAC 0.41 %, neon 0.42 % and frankly 0.45 %. At neon, costs also depend on your balance: 0.45 % below CHF 5'000, 0.39 % from CHF 50'000. With a larger balance, you pay as little there as at finpension.