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Gold ETF Switzerland: Everything you need to know about gold ETFs in Switzerland

Do you want to invest in gold but don't want to have to store gold bars at home? Then you can do this with a Gold ETF Switzerland-wide Very simple and convenient!

Gold ETFs can be a good investment option for you if you want to benefit from the performance of the precious metal without having to buy physical gold (coins or bars). In this article, you will learn everything you need to know about gold ETFs in Switzerland, how they work, what options are available and whether they make sense.

If you have any more questions on the topic, we look forward to an exchange in the comments!

Table of contents

What is a gold ETF?

A gold ETF (Exchange Traded Fund) is a Exchange-traded fund that tracks the price of gold. Depending on the type of ETF, the fund buys physical gold or gold derivatives and holds them as collateral. Investors can buy shares in the ETF that track the value of the gold. This offers a simple and cost-effective way to invest in gold without having to worry about storage or physical ownership.

Advantages of gold ETFs

  1. Easy handling: Gold ETFs can be traded like shares on the stock exchange, which makes buying and selling very flexible and uncomplicated.
  2. Low costs: Compared to physical gold, there are no storage costs and insurance costs. The management fees of an ETF (the annual fee is known as the TER) are generally very low. A typical TER for a good gold ETF in Switzerland is less than one per cent per year.
  3. Liquidity: Gold ETFs are very liquid as they are traded on the stock exchanges. This means you can buy or sell shares at any time. This would not be so easy with physical gold, as it is not always so easy to find a buyer for your gold bar.
  4. Diversification: By buying a gold ETF, you can diversify your portfolio (spread it more broadly) and thus reduce the risk.

You can easily add gold ETFs to your portfolio with your Online broker of your choice take care of. In addition to the Shares ETFs you can simply invest in precious metal ETFs there.

Buy gold ETFs in Switzerland

Firstly, an overview of some of the most popular gold ETFs in Switzerland:

ETF NameISINProviderCostsSpecial features
ZKB Gold ETF (AA CHF)CH0047533523ZKB0,40%Physical gold
ZKB Gold ETF (AAH CHF)CH0047533549ZKB0,40%Currency hedging
UBS ETF Gold (USD) ACH0106027193UBS0,23%Physical gold
Raiffeisen ETF - Solid Gold Ounces A CHFCH0134034849Raiffeisen0,27%Physical gold
iShares Physical Gold ETCIE00B4ND3602iShares0,30%Physical gold

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ZKB Gold ETF

Zürcher Kantonalbank (ZKB) offers several gold ETFs, including the ZKB Gold ETF (AA CHF) and the ZKB Gold ETF (AAH CHF). These ETFs are very popular with Swiss investors and offer a favourable way to invest in gold.

  • ISIN: CH0139101593 (AA CHF), CH0139101601 (AAH CHF)
  • Costs: Low management fees with a TER of 0.4% per year
  • Trade: On the SIX Swiss Exchange
  • Safety: 100% physically deposited in Switzerland, no issuer risk
  • Physical delivery: Possible in standard bars of approx. 12.5 kg
  • ZKB Gold ETF Price: Can be viewed on the stock exchange at any time. Chart:

UBS Gold ETF

UBS also offers gold ETFs that hold both physical gold and invest in gold derivatives. One example is the UBS ETF Gold (USD) A.

  • ISIN: CH0106027193 (USD), CH0106027128 (CHF hedged)
  • Costs: Favourable management fees with a TER of 0.23% per year
  • Trade: On the SIX Swiss Exchange
  • Safety: 100% physically deposited in Switzerland

What to look out for when comparing gold ETFs?

When choosing a gold ETF, you should consider various factors:

  1. Costs: Compare the management fees of the various ETFs.
  2. Liquidity: Pay attention to the trading volume and liquidity of the ETF.
  3. Safety: Check whether the ETF holds physical gold or invests in derivatives.
  4. Currency hedging: Some ETFs offer a hedge against currency fluctuations (e.g. the ZKB Gold ETF AAH CHF). Gold is traded internationally in US dollars, which is why the gold price is linked to the dollar.

Physical delivery of gold ETFs

If you invest in gold ETFs, some providers give you the option of buying the Have precious metal physically paid out and delivered. Depending on the bank, there are different conditions for storage and costs for delivery:

  • ZKB:
    • Storage: Gold is stored in bars of 12.5 kilograms and can therefore only be delivered from this size.
    • Costs: Delivery fee of a maximum of 0.2 per cent of the gold value.
  • Raiffeisen:
    • Storage: Possibility of delivering gold bars weighing one ounce or more.
    • Costs: Physical delivery costs CHF 200 for 1-10 ounce gold bars; the more ounces, the cheaper it becomes.
  • UBS:
    • Storage: Delivery in bars of all standard sizes, starting from one gram.
    • Costs: Production costs may be incurred if the respective gold unit is not available and has to be produced separately. Costs can then be very high, so be sure to enquire in advance.

 

Note that risks and restrictions are often set out in the small print. In times of crisis, for example, the bank may restrict or refuse physical delivery. Therefore, check the conditions of the respective bank carefully. More on this later in the risks section.

Do gold ETFs make sense?

Gold ETFs can be a A sensible addition to a broadly diversified portfolio especially in times of economic uncertainty. They offer a simple and cost-effective way to invest in gold and can be used as a Hedging against inflation and market volatility serve. However, it is important to consider the risks, such as the volatility of the gold price and the Missing earnings in the form of dividends or interest.

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Advantages of gold ETFs:

  • Safety: Gold is considered a safe haven in times of crisis.
  • Flexibility: Simple buying and selling via the stock exchange.
  • Cost efficiency: Lower costs compared to physical gold.

Disadvantages and risks of gold ETFs:

  • Volatility: Gold prices can fluctuate greatly. Ultimately, new gold deposits can be found every day and it is never guaranteed that the price of gold will rise in the long term.
  • No income: Gold ETFs do not pay dividends or interest, which means that the returns depend solely on the increase in value. Gold ETFs are therefore a speculation on the gold price.
  • Currency risk: As gold is traded in USD, there is a currency risk for Swiss investors. Fluctuations in the exchange rate can affect the value of your investment. However, currency hedging can result in additional costs.
  • Market risks: As with all exchange-traded products, gold ETFs are also subject to general market risks and can lose value in uncertain market phases.
  • Crisis situations: Legal risks could arise in extreme crisis situations. A historical example is the Gold ban in Germany from 1923 to 1955The first of these was the "gold ban", in which private gold ownership was prohibited and the precious metal could not be collected by banks. Although there were no ETFs at that time, physical delivery would not have been possible.

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Conclusion on the Gold ETF Switzerland contribution

Thanks to gold ETFs you can convenient and inexpensive invest in the precious metal gold. You must No worries about storage (burglars) or the high cost of physical gold (especially for small coins and bars).

The advantages of gold ETFs are therefore obvious, but there are also Disadvantagesas, for example, in absolute Crisis situations. However, if you are not assuming the end of the world or a gold ban, but simply want to hold gold as an addition to your broadly diversified portfolio, you can Swiss gold ETFs with 100%iger physical backing be a suitable choice.

However, it is also important to Cost-effective purchase of your gold ETFs with a favorable broker and not with an expensive house bank. Here you can find the best Swiss online brokers for your ETF purchases!

Will you be buying a precious metal ETF soon? Share the ISIN in the comments!

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