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FAQ

ETFs

An ETF is a basket full of stocks from many companies at once, in a single purchase, e.g. the S&P 500 (500 US companies) or the MSCI World (1'000+ companies worldwide).

ETF · broadly diversified

S&P 500, the classic among ETFs, live

The 500 largest US companies in one purchase, from Apple to Coca-Cola. Historically almost always positive over long periods, despite crashes along the way. The chart alongside shows the real, current price history, a single purchase covers hundreds of companies at once.

Comparison: a stock is a share in exactly one company, an ETF automatically bundles many different companies into one basket

ETFs, pros

  • Automatically spread across hundreds of companies (diversification).
  • Historically very reliably positive over 10+ years.

ETFs, cons

  • You buy the whole market, no influence over individual companies.
  • Returns are never guaranteed, even an ETF can fall in between.

Time beats timing

Investing regularly for the long term historically beats trying to hit the perfect entry or exit point. Short-term trading tends to be more of a losing than a winning game for most people.

What if?

CHF 200/month since 1993

Anyone who invested CHF 200 a month into the S&P 500 since January 1993, despite the dot-com crash, the financial crisis and Covid, would be looking at this by the end of 2025:

CHF 79'200
Paid in over 33 years
→
CHF 648'732
Value at end of 2025

That's 8.2 times the amount paid in. Annualised, roughly 10.7 % return per year (incl. reinvested dividends, before tax/fees, excluding the CHF/USD exchange rate, purely illustrative, not investment advice).

19932025

Illustrative calculation based on actual S&P 500 annual returns incl. dividends (source: Slickcharts). Past returns are no guarantee of future performance.

The 3 key takeaways

  1. An ETF bundles hundreds to thousands of companies into a single purchase.
  2. Historically very reliably positive over long periods, but without a guarantee.
  3. Time in the market beats timing individual buy/sell moments in the long run.