WHAT ARE ETFs?

Marketing information | Capital at Risk

... "Exchange Traded Funds". An ETF aims to replicate the performance of an index, such as the Swiss benchmark index SMI, and to achieve the same return as this index (minus the low fees). When you buy an ETF, you automatically invest in many different shares, bonds or commodities.
As the name suggests, ETFs are traded daily, which means you can buy or sell them flexibly during trading times.

The index to be tracked is reflected in the name of the ETF. It also includes the name of the provider, usually a regulatory reference, the currency and the share class, i.e. information on whether the ETF distributes or reinvests the income. In the example below, ACC stands for "accumulating" - reinvesting. Distributing ETFs are labelled D, Dist or Dis for "distributing".

The abbreviation "UCITS" means that the ETF must comply with special European guidelines. These serve to protect private investors and are monitored by the national supervisory authority.

The first ETFs were offered in Switzerland in 2000, and today there are more than 1,500 to choose from. This provides a large number of different ETFs that can be used to map your own investment objectives in a highly customised way. For example, ETFs can be used to invest in various

• Asset classes (equities, bonds & commodities)
• Regions & countries (e.g. industrialised or emerging countries, Europe or worldwide)
• and strategies (e.g. sustainable strategies).

Why don't you visit our product screener? There you can sort and compare our ETFs according to the above categories.

Not only has the number of ETFs grown, but also the options for working with them. ETFs are now available beyond a one-off purchase, but also as part of a savings plan. You can invest smaller amounts by paying a regular fixed amount into a selected ETF, similar to a savings account or standing order.
Investments in ETFs are becoming increasingly popular. According to data from YouGov, an estimated 209,000 investors in Switzerland will invest in ETFs for the first time in the next 12 months. (Source: YouGov data collection, February 2023, BlackRock calculations, 12 months from data collection).

Capital at Risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.