Passive, Active or Both? The Four arvy Solutions
July 6, 2026
6 min read
Passive, Active or Both? The Four arvy Solutions
From the ETF savings plan to individual oversight — what each step does, what it costs and when it is worth it.
01The question is not passive or active
The debate usually runs like this: index funds are cheap and beat most active managers, so passive is the sensible choice. The first part is true. The conclusion is too quick.
Because passive does not only mean cheap. Passive also means nobody is steering. An index buys what is large and sells what shrinks. It asks no questions about valuation, leverage or business model. That is usually good enough — which is exactly why a broad world index is the right base for almost everyone.
So the more interesting question is not "passive or active" but: how much of your wealth should follow the index, and how much should be steered by someone who holds a view and has to justify it? There are four answers.
02The four steps at a glance
| Step | Split | Annual fee | For whom |
|---|---|---|---|
| ETF Savings Plan | 100% index | 0.39% | Getting started, maximum efficiency |
| ETF + arvy | 60% index, 40% active | 0.59% | Keep the base, add steering |
| arvy Active | 100% active | 0.79% | Full selection, equities and bonds |
| arvy CIO | individual | in preparation | Larger wealth, comprehensive oversight |
The fees shown are management fees. Product costs of the funds used come on top. You can change step at any time, in either direction.
03Step 1: ETF Savings Plan
All index, as efficient and low-cost as possible. A broad world equity index, invested weekly, physically replicated, with Irish fund domicile. No selection decision, no opinion, no surprises.
This is the step we recommend to most people as an entry point — not because it is the cheapest, but because it does the most important thing: it gets your money into the market and keeps it there. Anyone who does nothing for thirty years but fund this single building block has achieved most of what wealth building can deliver.
What you get: the market return, less very low costs. What you do not get: someone who intervenes. Everything else about this step is in the ETF Savings Plan Guide.
04Step 2: ETF + arvy
Always 60% index, 40% active selection. The core remains the same broad world index as in step 1. Alongside it sits an actively managed portion: selected companies, every position with a reason.
This is the step that needs the most explaining, so here is the honest version: for roughly 0.2% more you are not promised a higher return. You are given judgement — someone who decides what sits alongside the index and can explain that decision.
What that means in francs
The difference between step 1 and step 2 is 0.20% a year. On a CHF 10,000 portfolio that is CHF 1.67 a month. On CHF 50,000, roughly CHF 8.30. Percentages sound abstract; in francs the question becomes: is active steering of 40% of your portfolio worth that to you?
Why 60 to 40 rather than 80 to 20 or the reverse? Because the active part has to be large enough to make a difference and small enough that a weak year in selection does not dominate the overall result. The logic behind which part is core and which is satellite is in Core-Satellite Explained.
05Step 3: arvy Active
Fully active, from bonds through to equities. No index component. Every position in the portfolio is a decision — including on the bond side, where passive indices have a known design weakness: they weight by outstanding debt, giving the largest borrower the largest weight.
This step is for investors who want to deviate from the index deliberately and can bring patience to it. Because deviation necessarily means there will be periods when the portfolio lags the market. Anyone who cannot sit through that is better served by step 1 or 2 — and that is not a fallback, it is sound self-assessment.
06Step 4: arvy CIO
In preparation. The fourth step is aimed at larger wealth, where investing is only part of the task. Then it also involves coordinating pensions, taxes, liquidity and succession — the role a chief investment officer or a family office fills for larger fortunes.
We are not yet communicating terms or a launch date. If the topic is relevant for you, get in touch and we will let you know when it is ready.
07What we do not claim
This is the point where many brochures assert that active management is superior to passive. We do not say that, for a simple reason: it is not true. Across all active funds, the majority underperform their index after costs. Anyone telling you otherwise is selling a return they cannot deliver.
What active management can deliver is something else: a deliberate deviation that is justified. That is not a return promise but a judgement promise — and it survives a bad year. How loosely the famous statistic on this topic is calculated is something we have looked into separately.
Passive does not only mean cheap. Passive also means nobody is steering.
08Which step fits you?
You are starting out and want it simpleETF Savings Plan
You want the cheap base but not only the indexETF + arvy
You want to deviate deliberately and can sit through dry spellsarvy Active
Your wealth raises questions beyond the investment itselfarvy CIO
The choice is not final. You can switch at any time, in either direction. Many start at step 1 and move up as their wealth grows or as they find they want more context. Others stay on step 1 for thirty years — and that is entirely fine.
09Frequently asked questions
Is active management better than passive?
Not as a general rule, and in aggregate rather not: the majority of active funds underperform their index after costs. What active management can deliver is a deliberate, justified deviation — not guaranteed outperformance. If you hear a return promise, be sceptical.
What does it cost to move from one step to the next?
The switch itself is free. What changes is the ongoing management fee and the composition of the portfolio. Reallocating can incur transaction costs and stamp duty, as any purchase or sale does.
Why exactly 60% index and 40% active?
The active part has to be large enough to make a difference and small enough that a weak period in selection does not dominate the overall result. The split is fixed so that it stays clear what you own.
Can I move back down a step?
Yes, at any time. There is no minimum term and no notice period. Deciding the simpler version suits you better is not a step backwards but an adjustment to your own risk tolerance.
How does arvy Active differ from a conventional active fund?
In two ways: the positions are justified and publicly traceable, and the founders invest their own money in the same strategies. That is not a return promise, but it changes where the interests lie.
When is arvy CIO launching?
The solution is in preparation. Terms and timing will be communicated once they are settled. Anyone interested can get in touch and will be informed.
Keep reading
What the same building block can be used for
Regular saving — entry from CHF 500, no minimum contribution thereafter, executed weekly. Lump sums — a bonus, an inheritance, capital withdrawn from a pension fund. For a child via the children's account, where the horizon is longest and compounding works hardest. And as a low-cost base alongside an active strategy. A solution for restricted pension assets is in preparation.
Start at the bottom. Move up if you want.
The ETF Savings Plan is the entry point — broadly diversified, invested weekly, as cheap as possible.
This article was written by Thierry Borgeat, co-founder of arvy, and reviewed by Patrick Rissi, CFA, and Florian Jauch, CFA.
Disclaimer: arvy AG is a manager of collective assets authorised by FINMA under Art. 24 CISA. This article is for information purposes only and constitutes neither investment advice nor tax or legal advice. All amounts are indicative and depend on canton, municipality and personal circumstances. Past performance is not a reliable indicator of future results.
