How to Invest in Swiss Market Index Index Funds in 2025

Putting your money into an index is a simple and convenient way to create an investment portfolio, especially if you’re just getting started with investing.

An index, like the Swiss Market Index, provides a snapshot of a particular section of the stock market, and by investing in it, you gain exposure to a diverse portfolio of stocks, which can help reduce risk compared to investing in individual companies.

One of the best ways to invest in the Swiss Market Index index is through Exchange-Traded Funds (ETFs). ETFs are designed to track the performance of an index and are highly convenient for beginners. They allow you to buy shares in the Swiss Market Index with just a few clicks.

Read on to learn how to invest in the Swiss Market Index effectively and explore the best methods to do so. Compare different investment strategies, available ETFs and index funds, and find out why Swiss Market Index index investing is a low-cost, relatively low-risk approach to growing your wealth over time.

How do I invest in the SMI index?

The easiest way is to sign up to a stock broker, open an investment account, and buy shares in an Swiss Market Index ETF. This guide explains how to do it:

Step 1. Sign up to eToro

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We recommend using eToro to invest in Swiss Market Index. Create your trading account and deposit some money using a payment method of your choice.

This is a fairly quick process that takes just 15-30 minutes, but you need to supply a form of photo ID to verify the account before you can use it.

4.6

eToro

Min. Deposit $100

Fees 1%

No. assets 3600+

Demo account Yes

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eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Step 2. Decide how to buy Swiss Market Index

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This boils down to choosing between an Swiss Market Index ETF or buying the stocks in the index manually. ETFs are generally better suited to investors who want to passively track the Swiss Market Index’s performance. Individual stocks offer a greater range of trading options and flexibility.

Step 3. Invest in the Swiss Market Index

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Sign into your trading account and search for the Swiss Market Index. Hit the ‘buy’ button and enter the details of your purchase, such as how much you want to spend. Hit ‘buy’ again to execute the trade.

Step 4. Monitor your investment

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When you buy a stock, the trade goes through more or less instantly, and you’ll be able to see your new open position in your trading account. ETF purchases can take longer, and if you buy outside of traditional trading hours it won’t go through until the next morning.

Your trading account will show the price change in the Swiss Market Index since you bought it, so you can see your profit/loss at a glance. Use that information, along with your own research, to decide when to sell the Swiss Market Index and close your position, ideally at a profit!

How much does it cost to invest in the Swiss Market Index index?

From $0 to $5, depending on how you invest. For each option, you must consider the cost of buying the actual asset, whether that’s an ETF, index fund, CFD*, or share, plus the fees associated with it.

*Note that CFDs are not available to US investors.

ETFs and CFDs are generally the cheapest option overall, as they have low fees and a low minimum investment. Index funds and mutual funds have low fees but may have a high minimum investment. Buying individual stocks is the most expensive option in absolute terms, because the share price of a single large company is often more than $100.

All options are likely to include a trading fee, which you pay each time you make a transaction. Some trading platforms offer zero-fee trading, with others it may be a few dollars. 

Then ETFs and index funds each have their own expense ratio. Expense ratios refer to an annual management fee, charged as a percentage of your total investment. Expense ratios are usually no more than 0.05%, so if you invest $1,000, you would pay $5 per year in management fees.

The different ways to invest in the SMI

As we mentioned above, there are numerous ways to put your money into the Swiss Market Index. ETFs and individual stocks are the simplest options for beginners, but there are alternatives. Here’s a brief overview of each option and who it’s best suited for.

Swiss Market Index ETFs

An ETF (exchange-traded fund) is an investment fund traded on a stock exchange, much like a stock. Exchange traded funds can hold different assets, such as individual stocks, bonds, or commodities, or serve as a proxy for a stock market index.

An Swiss Market Index ETF is one way of investing in the Swiss Market Index. It’s simply an investment fund that mirrors the performance of the Swiss Market Index. When you buy shares in the fund, the value of your investment will rise or fall with the Swiss Market Index itself. 

ETFs are ideal for new investors because they have a very low minimum investment. You can start with a few pounds and get exposure to some of the world’s largest companies. They’re also practical if you plan on trading the Swiss Market Index index, because you can buy or sell shares in the fund throughout the day.

Swiss Market Index index funds

An index or mutual fund is an investment fund that aims to track the performance of a stock market index, such as the Swiss Market Index. It’s very similar to an ETF, in that there are low management fees and you can buy shares through your online broker.

However, there are a couple of differences. Swiss Market Index index funds are only priced at the end of each trading day, so you can buy or sell shares in the fund once per day. There may also be a higher barrier to entry, through a much larger minimum investment when you invest in Swiss Market Index index funds.

That means an Swiss Market Index mutual fund is better suited for long term investors with a higher initial budget, where the infrequent trading and barriers to entry are far less of an issue.

Swiss Market Index CFDs (non-US users only)

CFDs (contracts for difference) are a way to speculate on Swiss Market Index price changes with more flexibility than if you use an ETF or index fund. A CFD is a ‘derivative’, which means it gets its value from the underlying asset – in this case the Swiss Market Index – but it’s separate from it.

As a result, CFDs can be leveraged, where you borrow money to multiply the size of the trade, or they can be used to go ‘short’, where you place a trade on the index to fall in value. You can also buy and sell them outside of regular trading hours.

All of this means Swiss Market Index CFDs offer the potential to outperform a fund that passively tracks the Swiss Market Index’s performance. Of course, you can also underperform it as well. Tools like leverage and shorting introduce a lot more risk, and are best left to experienced traders.

Swiss Market Index futures

Futures contracts are agreements to buy or sell the SMI at an agreed price on a set date in the future. Swiss Market Index futures are a means to predict how you think the index is going to perform over a set time frame, such as the next three or six months.

Most futures contracts involve leverage, so you only put up a small part of the total trade value (the margin) when you buy one. That makes futures more risky, and they require a bit more financial expertise to understand as well.

Some traders use futures as a hedge against the performance of stocks they own. For instance, if you own stocks that are part of the Swiss Market Index then you might want to short the Swiss Market Index so that you still make some money if the price falls.

Swiss Market Index stocks

Another way to invest in the Swiss Market Index is to buy shares in the individual stocks that the index tracks. It isn’t practical to buy every share in the index, but you can invest directly into a few of the most heavily weighted stocks in the Swiss Market Index in order to get broad exposure to its performance.

The most heavily weighted stocks in the Swiss Market Index tend to be the largest companies by market capitalisation. If you invest directly in those largest stocks, you gain exposure to the index without taking on the risk of all the underlying companies.

One reason to do this is that these larger companies with the highest market cap dominate the index anyway, so that it can give you the impression of a diversified portfolio while actually being reliant on the performance of those particular stocks.

The flip side of investing directly like this is that you lose the diversification and stability that comes with buying into an entire index. It requires much more hands-on management to do your own stock picking, so it’s best suited to more experienced investors.

Where can I invest in the Swiss Market Index index?

According to our expert research, eToro is the best ETF broker to invest in Swiss Market Index index funds. 

Both Swiss Market Index ETFs and Swiss Market Index CFDs are available to invest in through eToro .

Here are three more places to buy the Swiss Market Index, ranked according to their cost, security, and features.

4.6

eToro

Min. Deposit $100

Fees 1%

No. assets 3600+

Demo account Yes

Visit site

eToro review

eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

4.4

IG Markets

Min. Deposit n/a

Fees Spread only

No. assets 17000+

Demo account Yes

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IG review

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

4.1

Bitpanda

Min. Deposit $25

Fees –

No. assets 3000+

Demo account No

Visit site

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Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong

Should I invest in the Swiss Market Index index? 

Yes, Swiss Market Index investing is a great choice if you’re looking for a safer investment with more price stability compared to picking individual stocks. It’s also ideal if you don’t have the time to actively manage a portfolio of stocks, because you can simply invest in a bunch at the same time and then leave it alone.

The flip side is that you have less control over which companies you invest in. An index committee decides how the index works, and you can’t pick and choose the underlying companies you like the most. The Swiss Market Index is better suited to hands-off investors, compared to those who have the skills, experience, and desire to pick their own stocks.

What are the advantages of investing in the Swiss Market index?

An index provides instant stock market diversification, where you spread your risk across a large number of underlying companies, rather than one or two. Here are some more reasons why you might want to invest in the Swiss Market index:

• Switzerland has a stable economy. The Swiss Market Index includes many of Switzerland’s leading companies known for their stability and reliability. Investing in the SMI provides exposure to a market well known for its safe haven status. 
• It’s a diverse index. The SMI is comprised of stocks from various industries such as finance, healthcare, and industrials. This diversification helps spread risk while providing exposure to different areas of the Swiss economy. 
• Switzerland’s economy is strong. Switzerland is known for its strong economy, and the country has many innovative companies and a highly skilled workforce. Investing in the SMI means you’ll be able to benefit from future economic growth. 
• Many of the companies in the index provide international exposure. While the SMI is focused on Swiss companies, many of them have significant international exposure meaning you’ll benefit from the wider global economy. 
• There is potential for dividends. A lot of companies that comprise the index have a reputation for paying regular dividends. This means that if you invest in funds or ETFs that track the index, you’ll receive a share of these payments. 

What are the disadvantages of investing in the Swiss Market index?

The main risk of investing in the Swiss Market is that all the underlying companies are related in some way, so a broader economic downturn that affected the entire country would likely affect many stocks in the index at the same time. Here are some more risks of Swiss Market investing.

• A few sectors can influence its performance. The performance of a few large companies influences the SMI. These companies predominantly belong to the healthcare and financial sectors, meaning there is some concentration risk. 
• It’s a small index. The Swiss Market Index is made up of only 20 companies, which is significantly smaller compared to other global indexes. A concentrated portfolio of stocks means you’ll be open to specific company risks. 
• Currency fluctuations may impact returns. Switzerland has its own currency, the Swiss Franc, which has been known to be volatile. Fluctuations in exchange rates between the CHF and an investor’s home currency can impact returns on investment. 
• Switzerland is heavily reliant on exports. The global economy can impact the performance of the index. Switzerland relies heavily on exports, meaning economic downturns or global uncertainty can adversely affect the index’s performance. 
• It is focused on large-cap stocks. The SMI primarily includes large-cap stocks, which may not fully represent the broader Swiss market. If you want to gain exposure to smaller companies, looking elsewhere is recommended. 

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