2023-12-30 23:00:00
How to invest in 30 Swiss stocks with one instrument
In the short term, price fluctuations cannot be ruled out, even with index funds. But in the longer term, investors have the chance to benefit from positive performance.
Even a diversified index fund like the Swiss Leader Index does not protect against price losses. Here is a factory belonging to the construction chemicals company Sika. This also belongs to the Swiss Leader Index.
Photo: Christophe Bott (Keystone)
I opened a securities account with the UBS ETF SLI CH dis in February 2021. It later fell into the red, but now it seems to be recovering. Can you give a reliable forecast for this ETF? P G.
No. The UBS ETF SLI CH dis (ISIN: CH0032912732) tracks the Swiss Leader Index, which is made up of the 20 stocks of the Swiss Market Index and the 10 largest stocks of the SMIM index, which consists of medium-sized companies. With this distributing ETF you can gain cost-effective access to the 30 most liquid and largest stocks on the Swiss stock market. The annual costs charged to the ETF are 0.2 percent per year.
I cannot give you a reliable forecast for this ETF because the index depends on the development of the 30 Swiss companies it contains and the mood on the global stock markets and the economy. Given high interest rates, inflation and a poor economic outlook, the profits of many stock exchange companies could weaken. Interest rate cuts expected in 2024 will provide positive impetus.
In any case, you must expect price fluctuations with this ETF in the future. However, you have a good chance of achieving positive development in the long term of eight to ten years. It is important that you also use other markets and asset classes such as bonds or real estate for diversification.
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