Understanding Multi-Asset ETPs (Smart Diversification Tips)

Did you know that more and more people in Switzerland are choosing multi-asset ETPs? It is no surprise. These products allow you to combine shares, bonds, commodities and even currencies in a single investment. I still remember the first time I came across one. My reaction was simple: “Wow, everything at once. How am I supposed to understand that?”

That is exactly why this step-by-step explanation exists. In this guide, I will show you what multi-asset ETPs are, why they are interesting, and how you can use them smartly as a Swiss investor. If you want to see how different asset classes such as crypto, equities and bonds can be combined in one ETP, you can take a look here: (etps-krypto-aktien-obligationen-mischen).

No need to panic about technical jargon. Everything is explained in a relaxed, practical way, including small tips that helped me personally when I first started investing.

What are multi-asset ETPs?

A multi-asset ETP is an exchange-traded product that combines several asset classes in one structure. These can include equities, bonds, commodities or currencies. The goal is simple: achieve broad diversification with a single investment.

Compared to classic ETFs or individual investments, multi-asset ETPs benefit from combining different assets that can stabilise each other. When one asset class underperforms, another may help balance the overall result.

For Swiss investors, this is particularly convenient. One ETP can replace several individual investments and save time and effort. A clear example is the Smart All World ETP, which bundles multiple markets and asset classes into one product: (smart-all-world-etp-inhalt).

Benefits of multi-asset ETPs for Swiss investors

The biggest advantage is diversification without a complicated portfolio. You do not need to buy dozens of individual shares or funds. The ETP handles the allocation for you.

Multi-asset ETPs are also flexible. Depending on the product, you can trade them on the Swiss stock exchange (SIX) or on international exchanges. Many ETPs are transparent and clearly show their composition, which is especially helpful for beginners.

From a tax perspective, they are also well suited for Swiss investors. To better understand how ETPs are taxed in Switzerland, this guide provides useful insight: /etp-steuerfolgen-schweiz.

Risks and what to watch out for

Of course, there are risks. Market movements and currency fluctuations can influence performance, especially if the ETP includes international investments.

Costs are another important factor. Management fees and possible tracking differences can reduce returns over time if they are too high.

Finally, it is essential to understand the composition of the product. How much is invested in equities, bonds or commodities? Checking liquidity and trading volume can also help avoid unpleasant surprises.

How to integrate multi-asset ETPs into your portfolio

Multi-asset ETPs can be used strategically, for example to build long-term wealth or add stability to your portfolio. They often work best as a complement to existing investments.

Regular review is important. In most cases, checking once a month to see whether the allocation still matches your goals is enough. If necessary, you can rebalance by adjusting the proportions.

A practical example from my own experience: I invested in a multi-asset ETP that includes European equities, US bonds and commodities. With one product, I achieved broad diversification without having to constantly manage individual positions.

How to choose the right multi-asset ETPs

Start by looking at performance and historical development, while remembering that past results do not guarantee future returns.

Management costs, tracking accuracy and the reputation of the issuer are also key factors. Swiss investors often prefer providers that communicate transparently and operate on reliable platforms.

The composition should always be clearly visible. How high is the equity allocation? Which commodities are included? What does the overall risk profile look like? These details help you make the right decision.

Conclusion

Multi-asset ETPs are an excellent way for Swiss investors to invest broadly while keeping things simple. They combine diversification, flexibility and easy trading in one product.

Take a closer look at your portfolio and consider whether a multi-asset ETP could be a good fit for you. With a little practice, you will quickly see how easy it can be to integrate one into your investment strategy.

Call to action: Review your portfolio and ask yourself whether a multi-asset ETP makes sense for you. Your next investment step might be closer than you think.

FAQ

1. What is the difference between a multi-asset ETP and an ETF?
Multi-asset ETPs combine several asset classes, while ETFs usually track a single index or one asset class.

2. Can Swiss investors invest in international multi-asset ETPs?
Yes. Many ETPs are traded internationally. Be aware of currency risk and tax considerations. More information is available here: (etp-steuerfolgen-schweiz).

3. What risks do multi-asset ETPs involve?
Market and currency fluctuations, default risks in bonds, fees and asset allocation can all influence performance.

4. How often should I review my multi-asset ETP portfolio?
For most investors, once per month is sufficient to review allocations and adjust other parts of the portfolio if needed.

5. Where can I buy multi-asset ETPs?
Through Swiss brokers such as Saxo Bank, Swissquote, or banks that offer online trading platforms. For an overview of how different asset classes can be combined in one ETP, see this guide: (etps-krypto-aktien-obligationen-mischen).