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You read it everywhere on social media: «Buy an all-world ETF and that's it.» Sounds simple. Sounds logical. But for Swiss investors, that's not a strategy - it's flying blind.
In this article you will find out why I think the «1-ETF strategy» is risky.
A FTSE All-World or MSCI ACWI invests around 60-65 % in US equities. A pure MSCI World (without emerging markets) even invests over 70 %. For someone who lives in Switzerland, earns in CHF and consumes in CHF, this means: you have a large block Foreign currency risk - especially USD/CHF.
What's more, an All-World is weighted according to market capitalisation. This means that the more expensive a market becomes, the more of it you buy - automatically.
This can cost you dearly. If the MSCI World in USD rises by 10 %, but the Swiss franc appreciates against the dollar at the same time, only a fraction of the return remains in CHF - or in extreme cases nothing at all.
Hedging would be a solution - but it is not a free offer. The main driver of hedging costs is the interest rate differential between CHF and USD (the so-called «cost of carry»). Depending on the interest rate level, this can cost significant returns over longer phases. There is an easier way: targeted home bias.
Swiss equities reduce your direct foreign currency risk and the need for hedging. Sure: Nestlé, Roche and Co. make over 90 % of their sales abroad - so they are still indirectly influenced by currencies. But you anchor part of your portfolio closer to your home currency, the CHF. And you save on exchange fees when Broker, because you trade directly in CHF.
A deliberate Swiss share of 20-30 % in the portfolio can be a wise decision - for less currency risk and lower costs. Of course, the Swiss market remains geographically concentrated. But thanks to the sources of turnover of the major Swiss stocks, you still have a global economic base.
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If you are just starting out and have little capital, you can start with an all-world ETF. That's better than not investing at all. But as soon as you can - and thanks to fractional shares, many brokers now allow you to do this with small amounts - consciously build up your portfolio.
Which one ETF suitable for entry you can find out here.
If you start with an all-world ETF, emerging markets are already included. The logical next step would then be to add Switzerland and, if necessary Gold as a stabiliser to that.
Which ETFs exactly, in which weighting and how you avoid overlaps - that depends on your situation. Because if you simply combine several ETFs without taking a close look, you risk double positions. For example, an MSCI World and an SPI ETF both contain Nestlé and Novartis. Such double weightings distort your portfolio - and you often only realise this when you take a closer look.
This is exactly why we have the FinanceTimetable developed: So that you can build up a portfolio step by step that suits your situation - without overlaps, without unnecessary costs and with a strategy that you really understand.
«One all-world ETF is enough» is not a well thought-out investment strategy. At least not for someone who lives in Switzerland and wants to build wealth in the long term.
You don't need a complicated plan with 15 positions. But you do need more than a single ETF and the belief that the dollar won't fall.
Remember: A strategy does not mean having an ETF. It means knowing why it is there.
The right You can find brokers for your portfolio here.
No investment advice.
Dear Eric
As a regular buyer of MSCI World and FTSE All-World, I read your blog post and your thoughts with great interest.
I can well understand the points you have outlined regarding the high proportion of US funds in global and developed ETFs, the associated currency risk and, in particular, the depreciation of the USD against the CHF.
However, there are a few counter-arguments that I would be interested to hear your opinion on. I would like to check whether my considerations are at least partially correct:
1. PERFORMANCE:
Historically (or over the past 12 years), global or developed ETFs have generally performed better than Swiss ETFs.
See e.g. the comparison on https://www.justetf.com/ch/etf-comparison.html?isin=IE00B4L5Y983&isin=IE00B6R52259&isin=CH0237935637&isin=CH0237935652&isin=CH0008899764&isin=CH0031768937 .
If you set the slider to «Max» in the chart, you can see the performance since mid-2014.
The iShares Swiss Dividend can still keep up to some extent in terms of price performance, but is significantly less diversified with only 20 positions. In addition, dividends are taxable, which leads to a lower after-tax yield.
Isn't the better long-term performance of global and developed ETFs enough to at least partially compensate for the disadvantages you mentioned?
Of course, there is no guarantee for the future, but a period of around 12 years still seems to me to have a certain significance.
2. EXCHANGE FEES:
There are World and Developed ETFs that are traded directly in CHF on SIX.
One specific example is the UBS Core MSCI World (IE00BD4TXV59, accumulating, TER 0.06%).
3. HOME BIAS:
Anyone who lives in Switzerland and earns in CHF usually already has a strong CHF exposure anyway.
The Swiss market is also rather small. A few large companies dominate the Swiss indices (e.g. Nestlé, Roche, Novartis with 12% each in the SPI and 15-16% in the SMI).
A high proportion of CH therefore increases the individual security risk.
Against this backdrop, wouldn't it even be counterproductive to also focus heavily on the Swiss market?
Thank you in advance for your feedback.
Kind regards
Dario
Dear Dario,
Thanks for your thoughtful points - exciting discussion!
1. performance: It depends very much on the time period. The last 12 years have been good for World ETFs - but much of that outperformance came from USD strength and the US tech rally. Neither has to repeat itself. If you consistently factor in currency losses, fees and taxes from a Swiss perspective, there are over 25-30 years of studies where the SPI has beaten the MSCI World. And 2025 in particular was a good example: the SPI made strong gains, while the MSCI World barely got off the ground from a Swiss perspective due to the loss of the dollar. This is of course a snapshot - but it shows how quickly the picture can change.
2 CHF trading ≠ CHF hedging: That's right, you save on exchange fees when you buy an MSCI World ETF on the SIX in CHF. However, this does not change the currency risk. The shares in the fund are still valued in USD, EUR, JPY, etc. If the dollar falls, your return in CHF falls - regardless of the currency in which you bought the ETF. Trading currency is not the same as hedging.
3. home bias: this is your strongest argument, and I partially agree. Nestlé, Roche and Novartis dominate the SPI - blindly 50% Switzerland would not be a good plan. But my point is not «all in Switzerland» at all. International diversification remains the focus - you want to have tech companies from the USA and other exciting stocks worldwide in your portfolio. But a deliberate Swiss allocation of 20-30%, for example, can significantly reduce the overall currency risk without manoeuvring you into a cluster risk. This is different from «betting heavily on the Swiss market».
Short: The World ETF is a good basic product. My article is directed against the misconception that it alone is a ready-made strategy - especially as a Swiss citizen. 😊
No investment advice.
Kind regards,
Eric