Investing in Swiss Franc ETFs

The Swiss Franc is one of the most stable currencies in the world. Even in times of economic trouble, the Swiss Franc remains relatively unaffected, often rising in value during crisis. This is the main reason that investing in a Swiss Franc ETF is so attractive.

Many investors prefer to put their money somewhere safer during uncertain economic times. Switzerland is often considered one of the safest places in the world for investing your money.

Switzerland is enjoying a fast economic recovery and is far outpacing other countries in Europe. It enjoys a stable, highly democratic government and is the third largest financial center in the world.

For these reasons and more, investors are seeking to profit by investing in the Franc. Common holdings for ETF’s include Nestle, Novartis, Roche, and many other stable companies.

UBS and Credit Suisse are also popular choices, they are the two largest banks in Switzerland and are highly stable investment vechicals.

Switzerland has several major industries including banking, watches, and chocolate. 40% of the Swiss GDP is based on exports, creating a healthy, balanced economy, and a stable investment environment.

There are several examples of Swiss Franc ETF’s you can choose from:

iShares MSCI Switzerland Index Fund EWL, producing gains of approximately 14% over the past year: http://ch.ishares.com/en/rc/

Currency Shares Swiss Franc Trust (EXF) is another Swiss ETF you may want to consider for your portfolio.

The Swiss National Bank has taken interventions in the past to stabalize its currency. During times of economic uncertainty investors are known to flock to Switzerland for safety. This causes a rising value of the Franc and can threaten the Swiss economy if measures are not taken.

For this reason, the Swiss National Bank takes efforts to keep the currency stable. Doing so enables the Swiss economy to remain strong and keep the country an attractive investment environment.

This also means that ETF’s do not perform as well because the National Banks interventions lower their gains. However, the ETF’s are still growing at a healthy rate.

Swiss Franc ETF investments represent a stable and safe investment choice. Any investor wishing to secure their portfolio and protect themselves against currency fluctuations in these uncertain times should seriously consider investing in the Swiss Franc.

What Does A Steel ETF Invest in?

Steel Exchange Traded Funds (ETFs) invest in the iron and steel industry. Three of the largest steel EFTs are the Market Vectors Steel Index ETF, SPDR S&P Metals & Mining and PowerShares Global Steel Portfolio. Steel is a product that general consumers and investors understand. However, the investment options in that niche are less well known. What does a steel ETF invest in?
• Iron-ore
Iron-ore is the raw material from the mine that is converted into steel. When a steel ETF invests in iron-ore, it is either investing in mining companies that primarily mine iron ore or buys stock in companies that own their own iron mines.
• Coke
Coke is the primary fuel used to fuel iron and steel refining. Some iron and steel manufacturers buy up coke suppliers to lower their fuel costs. Investing in coke producers provides another avenue for investing in the steel industry while diversifying steel ETF holdings.
• Recycled steel
Steel recyclers have several benefits over those who smelt new steel. The first advantage is the broad material supply base recycled steel producers enjoy. They do not have to import steel from abroad or from mines. Every scrap metal dealer in their supply chain sends metal to them. The recycled material is often cheaper than iron ore while requiring similar amounts of energy to recycle. Steel recyclers can also benefit from tax breaks and government programs targeted for green industries because they are recyclers. A steel ETF can benefit from this sector by holding companies such as Pacific Steel & Recycling and other companies associated with the Steel Recycling Institute (SRI).
• Iron works and foundries
Steel Exchange Traded Funds can invest in iron works and foundries that produce steel. Buying shares in foundries that work with both steel and other metals allows shareholders to profit from all forms of metal manufacturing. Iron works and steel foundry investing often focuses on international companies with works in India and China, since this is where much of the world’s demand for steel is located. Yet there are foundries such as Globe Iron Foundry Inc. in California and Hydro Carbide and Hodge Foundry, Inc., both in Pennsylvania. One of the largest iron producers in the world, United States Steel Corporation, is also based in Pennsylvania.