When building your global ETF portfolio, do you think of Switzerland as just a quaint staid tourist country with great chocolate and fine watches? Or as another example of “Old Europe” with high taxes and big government which stifles economic growth? Think again. The Swiss ETF is a regular position in some of Chartwell ETF Advisor’s model ETF portfolios. Here’s why.
For starters, Switzerland is home to four of the largest five firms in Europe in terms of market capitalization: UBS, Nestle, Novartis, and Roche. It also has the highest per capita income in the world. While only 137 miles by 216 miles in size with a population of 7.2 million,
Switzerland packs a punch and is a financial and multinational powerhouse. Let’s take a quick look at the asset side of Switzerland’s balance sheet.
It has a strong currency backed by ample gold reserves, fiscal discipline, trade surplus and very little foreign debt. Outward looking, Switzerland has 40% of its GDP attributed to exports. Switzerland represents the third largest financial center in the world after New York and London. It is also home to world-beating pharmaceutical, engineering and food companies.
When investing in the Switzerland exchange traded fund (ETF), (EWL) you’re investing in quality, strength and stability.