A general overview
Switzerland has a perfect framework for foreign investors. That’s why every 3rd world’s biggest company has offices in this region. The taxation system is adjusted to attract more investors. This country offers one of the smallest taxation fees. Nowadays, 6500 foreign investors contribute to Switzerland’s GDP with over 5 billion dollars annually. It also creates jobs for about 15k citizens.
The Swiss Market Index features the top 20 biggest companies in Switzerland and includes UBS, Novartis, Julius Baer, etc.
This country also has a well-developed infrastructure as well as a competitive business environment. In combination with a stable economy and modern innovations, Switzerland’s quality of life is among the best worldwide. These reasons make a compelling case for investing in this region.
Top 3 reasons to consider this region:
- First of all, it has a strong economy.
- Secondly, it has low inflation and national debt.
- Finally, Switzerland has a very low rate of unemployment.
All these factors show how safe it is in the eyes of an investor.
3 types of possible investing
The simplest method to get ETFs. Using the exchange-traded funds, an investor may securely buy assets. The most in-demand options in the Swiss ETFs are:
- iShares MSCI Switzerland Index Fund;
- CurrencyShares Swiss Franc Trust.
They are also called EWL and FXF respectively.
Another option is to get Switzerland’s ADRs. The abbreviation stands for the American Depositary Receipts. It offers investors to buy individual stocks trading via US exchanges. The most well-known are Nestle SA and Novartis AG. This may become a perfect choice for those who want to cover certain areas of the economy. Keep in mind that the US brokerage accounts can also buy ETFs.
Finally, a person might invest directly in Swiss stocks. This is, without a doubt, a complicated solution. You may use the main stock exchanges:
- The SIX Swiss Exchange;
- The Berne eXchange.
The first exchange market is the largest in the region and deals with larger stocks. The other one serves small and medium-sized companies. For example, The Swatch Group, Valiant, and others. Despite being complicated, it’s still very profitable.
An investor may pick from these three options based on his preference, capital, and needs.
Switzerland has turned into a popular destination for investors due to the perfect combination of many reasons. It has a convenient taxation system, low inflation, stability (both political and economic), etc. This leads to an abundance of skilled professionals in different industries. Nowadays, 15 of the Fortune 500 companies have headquarters in Switzerland. Due to all above mentioned, Switzerland will continue to be the best investment destination for investors from all across the globe.