You will get an ETF portfolio tailored to your needs
Our four StoneCap by NPB portfolios have achieved an excellent performance in recent years.
Cornerstones of our ETF Portfolios
The ETFs we select cover a broad range of asset classes: in addition to equities and bonds, our ETF portfolios also include investments in real estate and infrastructure, precious metals and alternative investments such as listed private equity.
Global diversification allows risks to be optimally reduced.
Using sector and thematic ETFs, we seize market opportunities and can increase the return on your portfolio.
With an intelligent ETF portfolio, you invest your money for the long term with minimal effort, leaving more time for you. You can check the performance of your portfolio online at any time.
The current composition of our four ETF portfolios can be found here:
What is an ETF?
ETFs (Exchange Traded Funds) are investment funds whose performance follows a market index. They make it possible to invest in a diversified and cost-effective way in a simple manner. The classic ETFs track stock market indices, such as the SMI in Switzerland, the S&P500 in the USA and the DAX in Germany. ETFs are one of the most successful innovations in the financial industry in recent decades. ETFs are now available for almost all asset classes, markets and themes.
Why invest in ETFs?
Costs - ETFs are very cost-effective investment instruments. Some ETFs on the major indices cost less than 0.1% p.a.. However, even with ETFs, cheap is not always good: StoneCap by NPB primarily uses more expensive CHF currency-hedged ETFs for bond ETFs in order to protect them against unwelcome devaluations of foreign currencies. In addition, promising ETFs or ETPs on other asset classes (e.g. real estate, listed private equity and precious metals) are also used, for which a slightly higher product fee is charged. StoneCap by NPB can also invest in so-called momentum ETFs, which over the last years have shown a significantly higher performance than traditional ETFs, but also cost a bit more. Accordingly, the (implied) average cost of our ETF portfolios is 0.3% to 0.4% per year, slightly higher than those of a "low-cost" roboadviser. It is the goal of StoneCap by NPB to provide its clients with a highly professional asset management at a moderate cost of less than 1%.
Liquidity and Transparency - most ETFs can be traded on exchanges and are very liquid. For each ETF, it is also possible to see which securities are included. ETFs are optimal investment vehicles to achieve broad diversification and thus minimize risk.
Safety - ETFs are investment funds subject to the provisions of the fund legislation and subject to the supervision of state regulatory authorities. The investor owns the ETFs, which are segregated uncertificated securities. The investor is thus protected from losses even in the event of bankruptcy of the bank.
Relative Performance-Guarantee - with ETFs, you are assured that your portfolio will roughly track the performance of broad indices. With actively managed funds, only a (small) minority of fund managers manage to beat the respective benchmark indices over longer periods.
How are the ETFs selected?
Performance and Costs - Costs are measured by the total expense ratio (TER), which includes all costs allocated to the fund. The decisive factor in the selection is not only a favorable TER, but ultimately the performance of an ETF (after implicit costs) in relation to the other ETFs that track a particular index.
Liquidity - We prefer ETFs with high trading volume and low spread between bid and ask prices. This reduces trading costs.
Securities in an ETF - ETFs can be heavily dominated by individual securities. Even in bond funds, it is possible for individual debt securities to make up a large percentage. When possible, we choose ETFs with a low exposure to individual securities.
Tracking Error - Tracking error indicates how much the performance of the ETF and the performance of the underlying index differ. We prefer the deviation to be as small as possible.
Below is a sample of the ETFs we currently use:
- iShares MSCI World ETF - CHF Hedged
- iShares Edge MSCI World Momentum Factor ETF
- Xtrackers MSCI Emerging Markets ETF
- UBS SMIM ETF
- Xtrackers Global Aggregate Bond ETF - CHF Hedged
- SPDR Refinitiv Global Convertible Bond ETF - CHF Hedged
- UBS Gold ETF - CHF Hedged