Invest Efficiently: With Sponsored Funds

Invest Efficiently: With Sponsored Funds

Trade Funds like Shares – on Our Regulated Exchange

Diversify Your Investment Portfolio

Through its investment funds segment, the Swiss Stock Exchange brings together real estate owners, companies and investors to provide a transparent, efficient platform to list and gain exposure to both real estate and equities.

The Sponsored Funds segment is an innovative addition to buy and sell investment funds as easily as shares. It allows even further diversification, allowing you to trade over 500 funds that focus on specific areas such as biotechnology, volatility and dividends just to name a few.

Given the wide selection on offer, you will always find a product to suit your investment strategy. This also underscores Switzerland’s position as a world-class financial center.

Your Benefits on the Swiss Stock Exchange

A Better Way To Trade Investment Funds: Sponsored Funds

On the Swiss Stock Exchange, Sponsored Funds trade in a market making segment in which a sponsor provides continuously binding buy and sell prices during trading hours. Our high levels of transparency, continuous pricing by market makers and instant order execution in fund trading allow you to react even faster to market developments and to know immediately which price you achieved.

We attach great importance to a regulated and secure trading environment. We continuously monitor exchange trading and check each transaction to ensure fair pricing, thus providing the best possible protection to investors and ensuring equal treatment of all market players. We also monitor compliance with the minimum volumes and maximum bid/ask spreads to be fulfilled in market making.

We provide investors with extensive expertise and comprehensive information. You can view trading activity on our website at any time. During trading hours, an electronic order book is displayed for each fund. This allows you to track buy and sell orders awaiting execution, as well as volumes (number of units or nominal value) for each price step. Historic trading data are also at your disposal.

"Funds in Focus"

Published on a regular basis, the series of articles "Funds in Focus" will present different topical investment themes, including a list of Sponsored Funds that relate to the given theme.

About This Service

From a regulatory perspective, the capital you have invested is protected in the event of the issuer’s insolvency. In addition, the Swiss Stock Exchange only admits funds which have been approved by the Swiss Financial Market Supervisory Authority (FINMA), or are authorized for sale within or from Switzerland. This guarantees you that every product complies with Swiss investor protection rules.

Pragmatic innovation to find additional liquidity

With the introduction of the Auction Volume Discovery (AVD) order type in May 2023, capped contra-liquidity on the sidelines of the auction is stitched together, without information leakage or price impact – also availabe for real estate funds.

Investment Funds

39 investment funds listed on the Swiss Stock Exchange of which 35 Swiss real estate and 1 global real estate. The majority is residential property followed by 30% commercial real estate and 10% mixed. Measured by the market value of the properties, listed real estate funds own more than 40% of their properties in cities. These 39 funds account for a market capitalization of CHF 40 bn.

Sponsored Funds

Sponsored Funds are traded like ETFs or Structured Products in a market making segment, and a sponsor provides continuously binding buy and sell prices during trading hours. This means you can rely on mark-to-market valuations combined with maximum transparency. The 500 funds tradable in this segment focus on an array of sectors and markets.

Resources

Published on a regular basis, the series of articles "Funds in Focus" will present different topical investment themes, including a list of Sponsored Funds that relate to the given theme. The team of authors consists of the fund specialists at Bank Julius Baer that handle the market making of traditional investment funds.

The Swiss Stock Exchange publishes the official notices of listed companies on a daily basis.
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1. In the case of underlyings comprised of more than 50% stocks that are traded on the primary market during the official trading hours of the Swiss Stock Exchange, the following rule applies:

  • The market maker must provide bid and ask prices for amounts of at least EUR 50,000 that do not deviate from each other by more than 2%.

2. In the case of underlyings comprised of more than 50% stocks that are not traded on the primary market during the official trading hours of the Swiss Stock Exchange, the following rule applies:

  • The market maker must provide bid and ask prices for amounts of at least EUR 50,000. The trading spread must not exceed 5%.

Application of rules 1 and 2

Rules 1 und 2 may both apply during a trading day.

Example: When the stocks on the Dow Jones Industrial Average Index are not being traded on the primary market because the New York Stock Exchange (NYSE) is closed, rule 2 applies. After the NYSE opens for trading at 3.30 p.m. Swiss time, rule 1 applies.

Rule 2 generally applies to underlyings in Asian markets, which are closed throughout the trading hours of the Swiss Stock Exchange.

In the case of underlyings comprised of more than 50% bonds the following rule applies:

  • The market maker must provide bid and ask prices for amounts of at least EUR 100,000. The maximum spread varies depending on the composition of the products.
  • 0.1% for money market products
  • 0.5% for money market products not traded in the fund currency
  • 0.5% for government bonds, "supranationals" and similar bonds with a maturity of less than 3 years
  • 1.0% for government bonds, "supranationals" and similar bonds with a maturity of more than 3 years, as well as for investment-grade corporate bonds
  • 2.0% for emerging market bonds and non-investement-grade corporate bonds

1. In the case of underlyings comprised of more than 50% commodities that are traded on the primary market during the official trading hours of the Swiss Stock Exchange, the following rule applies:

  • The market maker must provide bid and ask prices for amounts of at least EUR 50,000 that do not deviate from each other by more than 2%.

2. In the case of underlyings comprised of more than 50% stocks that are not traded on the primary market during the official trading hours of the Swiss Stock Exchange, the following rule applies:

  • The market maker must provide bid and ask prices for amounts of at least EUR 50,000. The trading spread must not exceed 3%.

Application of rules 1 and 2

Rules 1 und 2 may both apply during a trading day.

Example: When over 50% of the constituent commodities are not being traded on the primary market because the Chicago Mercantile Exchange (CME) is closed, rule 2 applies. After the CME opens for trading, rule 1 applies.

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