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Starting out as an investor is littered with a number of questions about your investment behaviour. So the question may arise, What types of investments you should make and in Which country/region, or in which industries an investment is lucrative.
Which sectors have a future and which do not? SMI vs. SPI, Which index is better? Which business model will go through the roof in the next few years and, above all, how can you participate in it? This Investment decisions The answer to these questions depends on various factors, which Mostly very individual are.
But why this complexity at all? There are enough studies that show that Monkeys make better individual stock picks than we dowho always try to be the smartest investors on the market. The magic word is once again: Diversification.
As fundamental investment is often a plant in a MSCI World ETF or a very broadly diversified "all-rounder ETF". (everything about ETFs in our ETF Guide) recommended. But what about on the doorstep?
The Economy in the direct home country is often quite transparent and obtaining information on investment products in his immediate environment, i.e. his home country, much easier. Those who earn and invest in Swiss francs usually have lower fees than when investing in other currencies.
So why not invest in a Swiss Market Index ETF or a Swiss Performance Index ETF invest? Here you can find out everything in a small comparison: SMI vs. SPI per ETF!
The Swiss Maket Index (SMI) forms the 20 largest and most liquid shares of the Swiss Performance Index shares. Compared to the Swiss Performance Index (SPI), it therefore does not cover all the shares traded on the Swiss Exchange (SIX).
The 20 shares of the SMI are mainly composed of the Pharmacy and chemistrybut also Banks and insurance companies and account for around 90 % of the market value and around 90 % of the trading volume on the SIX (Swiss Exchange).
Alone 60 % currently fall on the three titles Nestle, Novartis and Roche. Keyword: Cluster risk!
The SMI is also the underlying of many financial products from the derivatives sector or also different ETF SMI and other ETFs on the Swiss market.
As already indicated, you can see very well in this overview that the SMI has a certain cluster risk. Although 20 companies are included, the Weighting on 3 large companies in the index.
The SPI, on the other hand, includes almost all equity companies listed in Switzerland and also takes into account the dividends paid out.
Here you can see interactively how an exemplary SMI ETF has developed historically:
Currently, there is in principle only the possibility in two different ETF SMI to invest. Why are there only two ways to invest in a Swiss Market Index ETF? This is because Providers without a Swiss fund platform cannot offer and track an SMI ETF as cheaply or efficiently as domestic fund platforms. The reason is the tax advantagethat a Swiss Market Index ETF domiciled in Switzerland has over a foreign ETF.
Below you will find a Comparison of the two ETF SMI:
| Fund name | ISIN/Valor | (TER) | Income |
|---|---|---|---|
| UBS ETF (CH) - SMI | CH0017142719 /1 714 271 | 0.21% | distributing |
| iShares SMI® ETF (CH) | CH0008899764 / 889976 | 0.35% | distributing |
"Intelligent people learn from the mistakes of others".
We have compiled our top selection for you from all our tests and experience reports:
Historical performance of an exemplary SPI ETF:
When selecting SPI ETF`s things look better, here we have a wider range available. At least if you take into account subdivisions such as ESG or Mid Cap.
Here are a few examples:
| Fund name | ISIN/Valor | (TER) | Income |
|---|---|---|---|
| UBS ETF (CH) SPI (CHF) A-dis | CH0131872431 | 0.15% | distributing |
| Lyxor SPI UCITS ETF | LU0603946798 | 0.40% | distributing |
| iShares Core SPI (CH) | CH0237935652 | 0.10% | distributing |
| UBS ETF (CH) SPI® ESG (CHF) A-acc | CH0590186661 | 0.15% | Accumulating |
The ETF SMI of UBS (ISIN CH0017142719) is a little cheaper in terms of TER than the ETF from iShares (ISIN CH0008899764 / Valor 889976). Incidentally, the two ETFs hardly differ in terms of investment volume and performance. Both SMI ETFs are listed with approx. CHF 2 billion Fund volume and over the last few years have developed a similar return achieved. You can find more information on this, for example, at Just ETF comparison of the two products.
In addition to the option of investing in a Swiss Market Index ETF, a Investment by means of a robo advisor an interesting way to invest your money in the Swiss equity market.
Your key to success! Discover our top recommendations from real testimonials.
The plant in a SMI ETF or SPI ETF can be a useful addition or meaningful Diversification for your depot and allows you to get into the the strongest equities in Switzerland. If you want to open another position in addition to your basic investments, an SMI or SPI ETF could be a sensible addition. However, be aware that there is a certain cluster risk with the SMI.
What are you missing on the subject?
Leave us a comment there!
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2 responses
Hello, everyone,
Find the post fascinating, thanks for that.
How does the tax concession for Swiss ETFs compare with that for foreign ETFs?
Simply less federal stamp duty. Stamp duty, or do you notice the benefit only after the tax return?
Thanks for your feedback 🙂
The subject of taxes is not entirely trivial. But in simplified terms, it can be summarised with regard to dividends: With an ETF domiciled in Switzerland, all withholding taxes can be reclaimed (via a few detours).
For a foreign domiciled ETF, it depends on the country. A typical MSCI World domiciled in Ireland (where there is a tax treaty between the US and Ireland) will typically lose 15% of withholding tax to the US on its way to you. In some cases you can also claim this, but it is usually quite time-consuming, which is why it is not worth the effort for most investors.
There are still X number of exceptions and distinctions - I hope this brief summary was correct. If anyone sees a mistake, please let me know 🙂