What is it?
This feature lets you adjust your investment preference to focus more on Swiss companies. By toggling this option, Selma will allocate a higher proportion of your portfolio to Swiss ETFs, creating a “home bias”. 🇨🇭
Is this portfolio for me?
This portfolio option is ideal for investors seeking long-term growth with a focus on the Swiss market. Here’s why it might be the right choice for you:
You believe in the strength of the Swiss market. You expect Swiss ETFs to perform better than international markets.
You trust in a strong Swiss Franc. You think the Swiss Franc will gain strength compared to other currencies.
You’re planning for retirement in Swiss Francs. A portfolio with more domestic assets helps minimise currency risk when you eventually withdraw funds for Swiss-based expenses.
Are there requirements to toggle this preference on?
Yes, to enable this feature, you need a minimum of 7’500 CHF invested in your account.
The reason is that Swiss ETFs typically have higher unit prices, and the threshold ensures your portfolio remains diversified. This is important to protect your investments from market fluctuations.
How do I turn this feature on (or off)?
You can enable or disable this strategy through the mobile app:
Go to Investments > Strategy > Edit.
Enable (or disable) the “Swiss bias” option.
Review and confirm your new investment strategy before it takes effect.
What happens next?
Once you enable the Swiss bias and confirm the change, Selma will:
Sell some international ETFs. Your portfolio will shift focus by selling some international investment products.
Buy Swiss ETFs. These will increase your portfolio’s exposure to Swiss investments and hold more assets in CHF, reducing exposure to foreign currencies.
If you disable the Swiss bias, Selma will do the opposite and reduce the amount invested in Swiss investments.
How long does it take to take effect?
Selma proceeds with the adjustment as quickly as possible. You’ll typically see changes in your portfolio allocation within a few banking days.
Does it cost anything?
While Selma does not charge any additional fees for enabling this feature, as with any portfolio adjustment, indirect costs may apply:
Spread costs: These are the differences between buying and selling prices for investment products.
Currency exchange costs: If international holdings are sold, exchange rate differences may impact the final amounts.
Foreign exchange fees: In case an ETF trades in another currency than CHF, a foreign exchange transaction is automatically applied.