Zürcher Kantonalbank launches first Swiss Market Equal‑Weight ETF

Zürcher Kantonalbank has introduced the Swisscanto (CH) Index Equity Fund SMI Equal Weight, the first exchange‑traded fund that tracks the newly created SMI Equal Weight Index. The index contains the 20 largest Swiss blue‑chip stocks and rebalances each quarter to give every component a 5 % weight, reducing the concentration risk that previously came from heavyweight firms such as Nestlé, Novartis and Roche. Fabio Pellizzari, head of Index Solutions at the bank, said the product “combines the proven stability and defensive quality of leading Swiss blue chips with a modern, equal‑weight structure, giving investors broader, more balanced participation.”

The Swiss market now offers a wider range of low‑cost ETFs covering major indices such as the SMI, SMI Equal Weight, SMIM, SPI, SLI and the dividend‑focused SPI Select Dividend 20 Total Return.

Separately, the “Golden Butterfly” portfolio strategy—originating from a Swiss‑based investment researcher known as Tyler—allocates 20 % each to large‑cap equities, small‑cap‑value equities, short‑term government bonds, long‑term government bonds and gold. Designed for maximum consistency rather than peak returns, the mix seeks to smooth performance across economic cycles by pairing assets that tend to thrive in growth, deflation and inflation environments. The approach adapts the classic Permanent Portfolio to a stronger emphasis on small‑cap value and offers a European‑focused ETF implementation that accounts for currency‑risk considerations.