I have a question related to our very specific position as Swiss fire investors. Our ultimate investment véhicule would answer to the following criteria:
- Highly diversified (hence US and world index funds)
- Very low TER (max around 0.2%)
- Liquid investment (transaction volume)
- Limited currency exposure (hedged)
Reading through a lot of threads and investment strategies, I went on my own quest for the ultimate ETF for Swiss investors, and I would like to have the community’s opinion on that.
I found this interesting ticket from UBS, but like all things, it is not absolutely perfect: https://www.ubs.com/ch/en/asset-management/etf-institutional/etf-products/etf-product-detail.ch.en.ie00bym11l64.tradinginformation.html
- World index
- 0.21% TER
- High volume on SIX
- Hedged to CHF monthly
Synthetic means the ETF does not hold the securities, but a commitment from a counterpart to deliver the index return, with a 90% collateral value in the form of G10 gov bonds hold in an “escrow” account. This means if UBS default on delivering the ETF counterpart commitment, it can pull 90% of its value to return it to its investors.
Are you familiar with synthetic ETF? What is your opinion on this product What is your ultimate Swiss investor ETF.