On the stock market, it has always been a case of ‘little against large’. There is no definitive winner from this slugfest, though. According to the experts of ALKEN Asset Management, European small caps have significantly outperformed the broader market over the long term, trading for years at an average valuation premium of 15%. The pendulum then swung back, however: following the shift in the direction of interest rates and the inflows into US large-cap and big tech ETFs at the start of 2025, shares in the lower tiers of the stock market were suddenly trading at a discount of around 15%. The paradox here is that, because of their larger share of the domestic market, small caps usually benefit more when the big international conglomerates are affected by tariffs, currency fluctuations and global supply chains. In that regard the FuW Risk Index is the Swiss embodiment of precisely this idea, even if the share prices temporarily send a different message.
The discipline with which this idea is being implemented was most recently demonstrated in the rebalancing process, when Cembra Money Bank, Comet and Huber + Suhner were cut back following strong performances, while Autoneum was bolstered. Following the allocation on 1 April 2026, the largest holdings were Cembra at 8.99%, Huber + Suhner at 8.22%, Logitech at 7.65% and Comet at 7.57%. Gurit currently stands out on the positive side of the risk portfolio, however, as operational improvements and market sentiment are once again in alignment. The group specialises in advanced composite materials, engineering and core materials and supplies the wind energy, marine and industry sectors, among others. At the beginning of January Gurit reported a major, long-term supply agreement with a leading wind turbine manufacturer, followed in March by the news that the 2025 financial year turned out better than expected with an adjusted operating margin of 8.1%. In the first quarter of 2026 revenue from continuing operations rose by an impressive 25.1%. That the share is one of the positive outliers in the risk portfolio is not merely a technical rebound, but is underpinned by fundamentals.
Huber + Suhner tells a similar story. The company develops solutions for the transfer of power and data and serves the three core markets of industry, communications and transport. The demand comes from mega-trends such as e-mobility, autonomous driving, connectivity, the internet of things, AI and smart chips. It is little surprise, then, that the group posted a record numbers of orders received last year. Huber + Suhner thus represents the sort of second-line stock that is suddenly no longer just cheap, but also strategically relevant. The value of the mid cap has surged by a good three quarters over the last twelve months. The key point is that, compared with the SMI – a heavyweight benchmark index heavily influenced by a few large defensive concerns – the FuW Risk Index manages to gain momentum in the overlooked areas of the market. The strategy serves as a reminder to investors that returns on the stock market rarely come from where everyone else is already looking. Rather, it is often to be found in places the market no longer thinks worth the effort.
Anyone wanting to save themselves the effort of scrutinising the market in detail to identify the most promising stocks can take the ‘easy’ route by investing in a tracker certificate or an ETP+ linked to the FuW Risk Index. Both products track the performance of the barometer 1:1, less an annual fee of 0.70% for the tracker and 0.82% for the ETP+. In return, the net dividends are reinvested. The open-end products can be traded on every stock market day. The tracker is listed on the SIX Swiss Exchange, the ETP+ on the SIX and on the BX Swiss. The issuer risk for the exchange-traded product on the SIX SIS is further reduced through collateral deposited with it, thereby offering investors greater protection for their invested capital. An added attraction is that Leonteq itself enjoys a respectable BBB/stable rating from Fitch.
Management fee: 0.82% p.a.
Index Sponsor: Tamedia Finanz und Wirtschaft AG
Issuer: Leonteq Securities AG
We look forward to answering all of your questions about our products and how they are traded. Please don't hesitate to get in touch! Phone: 058 800 11 11, email info@leonteq.com or contact us here.