New portfolio advices?

Investing / Portfolios
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Hello everyone,

I am new to investment and I am currently building my portfolio.

I am living in Switzerland, and here my idea in term of strategy:

  • 70% on VT to have the largest ETF possible
  • 20% on ISHARES CHSPI to keep an investment in CHF and focusing on the Swiss market
  • 10% on commodities, I was thinking to go for Gold only but wondering which one is better, ZGLD or AUCHAH UBS hedged in CHF ? Or should I mix the Gold with Silver and Platinum too?

What are your advice? Knowing that I plan for long term investment (15+ years).

Thanks a lot!

2 Likes
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Seems like a solid plan.

  • VT for capturing the whole stock market
  • CHSPI for home bias
  • Commodities? Well… many different opinions. I guess with 10% it will not make a huge difference either way

Disclaimer: This is not a financial advice. I am just yet another anonymous guy on the internet :slight_smile:

1 Like
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Totally solid plan overall.

I recommend not taking a chf hedged gold etf, hedging gold makes no sense, as it has no currency exposure. You would just take another bet on the CHF on top, that is not really correlated to gold.

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For your information that would mean :
Nestlé : 2.87%
Roche : 2.76%
Apple : 2.6%
Novartis : 2.55%
Microsoft : 2.37%
Nvidia : 2.16 %
Amazon : 1.72%
Alphabet : 1.69%
Richemont : 1.18%
Meta : 1.16%
UBS : 1.15%
Zurich : 1.09%
ABB : 0.99%
Tesla : 0.87%
Broadcom : 0.78%

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Thanks all for your replies.

@Tony1337 I understands that betting for Gold is the same whatever the currency is. My question was more to avoid extra currency exchange fees and spread when purchasing/selling it. I imagined to keep a bigger CHF exposure into my portfolio by purchasing through a CHF ETF. Maybe I am wrong and I better go for a Gold ETF in USD such as UBS ETF (CH) Gold (USD) A-dis which has a 0.23% TER, rather than the ZGLD at 0.4%? Knowing that both allow to redeem physical Gold if wanted.

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I have shares of this gold ETF (CH0106027193) and it’s also traded in CHF. I.e., you can buy shares of this gold ETF without currency exchange and without hedging. That’s what I’d recommend if you anyway buy at SIX.

Depending on your broker, buying a gold ETF at another exchange in USD or EUR may or may not be slightly cheaper overall. However, except for fee/TER differences, there would be no performance difference.

If you buy shares of an unhedged gold ETF, that part of your portfolio is simply exposed to gold, not to CHF or any other currency. As already mentioned above, it doesn’t matter what currency you use to pay for your gold (if we ignore fees).

I agree with Tony1337 and would not recommend a hedged gold ETF, as it doesn’t really make sense.

A word of caution, gold should be considered a very long term investment, even longer term than stocks, in my opinion. There can be drawdowns that don’t recover for a very long time. I’m investing only 5% in gold as a small extra diversification beyond stocks and bonds. Gold has performed very well recently but long term the expected return is much lower than for stocks.

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Very clear Jay, thanks a lot! I am new in those aspect and really apricate your input.

I am using IBK, would it be the “AUUSI UBS ETF GOLD EBS” which is trading in CHF?

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Yes, AUUSI at EBS in CHF is the right one.

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Thanks a lot Jay!

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I use SPMCHA for my CH exposure, to avoid the Swiss large caps that are already in VT.

Commodities, it might be because of my limitations, but I was never happy with them. It is a lot of speculation and as a retail investor you have the short straw, Things like contango are an interesting read too..
Gold, not saying it might not go higher, but some things are certainly priced in. Nevertheless, there is enough reason to expect crazy stuff.