The exchange-traded product (ETP) on the FuW Swiss 50 was successfully launched exactly two years ago. Since then, the investment product has become firmly established on the Swiss market and is enjoying growing popularity among investors.
Compared to the SMI (Swiss Market Index), the FuW Swiss 50 offers broader diversification, as it comprises not only the 20 largest listed companies, but also the 50 most important Swiss stocks. This broader diversification enables a more balanced weighting of different sectors and reduces the heavy dependence on heavyweights such as Nestlé, Roche and Novartis, which dominate the SMI.
Another key difference is the weighting methodology. While the SMI uses market capitalization as its main criterion and is therefore heavily concentrated on a few large companies, the FuW Swiss 50 ensures a more balanced distribution. This gives more room to medium-sized and fast-growing companies, which has contributed significantly to the outperformance of the FuW Swiss 50 over the past two years.
Thanks to this structure, investors have benefited from better performance in market phases in which mid-cap companies performed particularly strongly. At the same time, the FuW Swiss 50 offers protection against the concentration risk problem of the SMI.
This is reflected in the performance. Since the go-live of the ETP+ on the FuW Swiss 50 two years ago, the underlying FuW Swiss 50 NTR Index has outperformed the SMI Total Return Index, which is calculated exclusively as a gross return variant, by an impressive 9.1 percentage points. This difference is particularly remarkable as the FuW Swiss 50 NTR Index is calculated as a net total return, whereby withholding taxes on dividends are already taken into account and deducted. In contrast, the SMI Total Return as gross return reflects the gross return without tax deductions. The fact that the FuW Swiss 50 was able to achieve such a clear outperformance despite these structural disadvantages underlines the strength of its broader diversification and its more balanced weighting, which has ensured a more stable and superior performance in different market phases.
On its second anniversary, the success of the ETP shows that it is seen as an attractive complement or alternative to the SMI. The FuW Swiss 50 ETP primarily appeals to investors who value broader market coverage and a differentiated risk and return structure.
Looking to the future, the FuW Swiss 50 ETP remains an innovative and powerful investment product that capitalizes on the strengths of the Swiss equity market without limiting itself to a few heavyweights - a real asset for modern investment strategies.
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.