(SW2CHB) UBS(Lux)Fund Solutions – - Ratings and Ratios

UBS (Lux) Fund Solutions – MSCI Switzerland 20/35 UCITS ETF (CHF) A-acc (SW:SW2CHB) is designed to replicate the performance of the MSCI Switzerland 20/35 Index (Net Return), providing exposure to the largest and most liquid Swiss companies. The fund is structured as a UCITS-compliant ETF, ensuring regulatory compliance and investor protections under European standards. It is listed on the SIX Swiss Exchange, making it easily accessible to investors in Switzerland and beyond.

The MSCI Switzerland 20/35 Index is a market-capitalization-weighted index that includes Swiss companies with significant economic exposure to the Swiss market. The 20/35 in its name refers to the weightings: no single company can exceed 20% of the index, and the sum of all companies with weights above 5% cannot exceed 35%. This structure ensures diversification and prevents over-concentration in any single issuer. The index is rebalanced quarterly to maintain these weightings and align with market conditions.

One of the funds key features is its currency hedging strategy. For investors holding the CHF-denominated share class, the fund employs currency hedging to mitigate the impact of currency fluctuations between the Swiss Franc and the currencies of the underlying securities. This is achieved through forward currency contracts, which lock in exchange rates and reduce currency-related volatility. The hedging methodology aligns with the MSCI Switzerland 20/35 Index (Net Return) CHF Hedged variant.

From a performance perspective, the fund aims to track the index before expenses. Historical data shows that the fund has closely tracked its underlying index, with minimal tracking error. The funds expense ratio is approximately 0.25%, which is competitive for a Swiss equity ETF. The funds assets under management (AUM) are approximately CHF 1.7 billion, indicating significant scale and liquidity. It is widely used by both institutional and retail investors seeking Swiss equity exposure.

The fund holds the underlying securities of the MSCI Switzerland 20/35 Index, providing direct ownership of the constituent companies. This structure allows for efficient tracking of the index and ensures that investors gain exposure to Switzerlands largest and most stable corporations, including those in sectors such as pharmaceuticals, financials, and industrials. The