The Swiss Stock Exchange Looks Back at BörsenTalk 21

SIX Swiss Exchange offered the first tracker certificate on Bitcoin back in 2016 and has since expanded its product range to a level that hardly anyone would have thought possible at the beginning. But what role can cryptocurrencies play in a portfolio at all? According to the panellists, this question largely depends on the risk preference of investors. In essence, Bitcoin, Etherum and their numerous "conspecifics" are an asset class today, digital gold, so to speak. They are well suited for diversification, as they do not correlate with the general market over long stretches. However, they carry a volatility risk. But how can investors know which cryptocurrencies to invest in and which to steer clear of? The main thing here is to find out exactly: Who is behind the currency, who uses it, how was it developed?

Actively Managed Certificates (AMCs) are not entirely new to the Swiss stock market. But they are increasingly popular within the family of participation products as tracker certificates. There are currently around 400 AMCs listed on the Swiss stock exchange. But what exactly are AMCs? AMCs are most comparable to funds. They are structured products with a dynamic approach, specifically: participation certificates that track an index with a predefined strategy. The differences to funds are mainly regulatory. In case of funds, the issuer itself is the owner of the underlying securities. In case of AMCs, which can be designed from a size of 2 to 3 million AUM, the issuer is the title sponsor. The focus is more on the rapid launch date and flexibility. According to the panellists, there will be two movements in the future: On the one hand, simple, automated, low-cost AMC will grow strongly, and on the other hand, customised services for complex, high-level needs. The market in between is likely to largely disappear. The panellists agree, however, that AMCs have a great future ahead of them, especially the smaller, less complex AMCs.

The first ETF was listed on the Swiss stock exchange more than 20 years ago - today there are almost 1600 ETFs listed. In addition, SIX Swiss Exchange recently heralded the future of ETF trading with "Quote on Demand", the new order book for trading in ETFs and ETPs. But first, a look back: during the crisis of the past months, major dislocations in ETFs were largely absent and spreads were tighter than for the underlying assets. Although it was a challenging year, ETFs held up well, which was also reflected in the exceptionally high liquidity. The ETF market is moving strongly. The panel experts find it positive that new products are coming to market that allow investors to diversify away from purely passive ETFs, which for a long time were simply structured according to the market capitalisation of large companies. The size of the products does not play the central role. Equally important are trading volumes, open platforms, transparency or - in the case of complicated trades - proximity to capital market experts.

SIX Swiss Exchange launched a bond index and an SPI index based on ESG criteria at the beginning of the year and plans to launch further ESG-based indices in the second half of the year. Throughout the market, it is noticeable that clients are increasingly switching to an ESG-based investment approach. In doing so, they do not want to accept any performance losses or changes to their chosen risk profile compared to traditional investment strategies. A key factor in ESG investing is the investor's conviction that society will move towards greater sustainability in the long term. Short-term setbacks in ESG stocks are possible. But if investors stand by their ESG investment strategy with a long-term time horizon, they will be rewarded.

All panel discussions can be re-watched at any time here.

• ETFs
• Overview crypto products
• Sustainable Investing