The UBS 100 Index (SBO100) tracks 100 of the largest and most liquid Swiss companies, spanning both large- and mid-cap stocks. The index includes a mix of multinational blue-chip firms and mid-sized companies, offering investors a diversified view of Swiss equities.
The index has a market-cap-weighted structure and encompasses various sectors, including healthcare, financials, retail staples, industrials, materials, and retail discretionary, making it a comprehensive indicator of Swiss market trends.
As the name suggests, there are 100 stocks in the index, which was initially launched in 1987.
UBS 100 Performance
The defensive qualities that Swiss stocks provide, primarily large-caps, have seen the SBO100 perform positively over the years. The uncertainty we have seen in the first quarter of 2025 has demonstrated this, resulting in a jump in the index’s price as investors look for safer assets.
| Period | Performance (as of 28/02/2025) |
|---|---|
| 1-year | +12.27% |
| 3-years | +1.26% |
| 7-years | +4.60% |
| 15-years | +4.36% |
UBS 100 Index Top 10 Companies
| Company | Weight (% as of 28/02/2025) |
|---|---|
| Nestle | 13.68% |
| Roche | 12.60% |
| Novartis | 11.97% |
| Richemont | 5.91% |
| UBS | 5.66% |
| Zurich Insurance | 5.21% |
| ABB | 4.62% |
| Holcim | 3.20% |
| Swiss RE | 2.54% |
| Alcon | 2.50% |
Swiss Large and Mid-Cap Stocks Forecast
The Bull Argument: As mentioned earlier, Switzerland’s large-cap stocks provide resilience and defensive qualities. Meanwhile, mid-caps offer higher growth potential. As a result, the index benefits from Switzerland’s economic stability, business-friendly policies, and global trade presence, which support long-term corporate growth. Analysts at UBS said in a recent note that amid the economic and geopolitical uncertainty, they have a preference for high-quality dividend stocks, particularly in Switzerland. Many, if not most, of those potential names (as you can see in the top 10 stocks) are included in the index.
Large-cap companies in the index, particularly in healthcare, finance, and consumer goods, offer consistent revenue streams, strong dividend payouts, and market leadership. These factors make the large-cap Swiss stocks a more stable investment option than smaller-cap indices.
Meanwhile, the mid-cap stocks included in the index provide an additional growth component. These companies are more agile and can benefit from niche market opportunities and sector-specific trends.
The Bear Argument: Despite the bullish argument, some factors could cause headwinds for large and mid-cap Swiss stocks. While large-cap stability is a positive, the mid-cap portion of the UBS 100 Index introduces greater volatility, making the index more sensitive to market downturns than purely blue-chip-focused benchmarks like the SMI . The recent uncertainty has seen the Swiss government trim its economic growth forecasts for 2025 and 2026, which could weigh on Swiss mid-cap names, which are more vulnerable to economic slowdowns and global trade disruptions, which can impact profitability.
Our View: Combining both large and mid-cap Swiss stocks in your portfolio offers a balanced approach with the stability of large-cap blue chips, with the growth opportunities in mid-sized firms.
However, we should also be aware that while mid-cap stocks contribute growth potential, they also bring higher risk, meaning investors should be prepared for short-term fluctuations. However, for those with a long-term horizon, the mix should provide a solid mix of defensive positioning and expansion potential across multiple sectors.
Overall, ETFs tracking Swiss large and mid-caps can be a valuable investment vehicle for those who appreciate the resilience but also want added exposure to the innovation and agility of Swiss companies.
Who Should Invest in Swiss Large and Mid-Cap Stocks
For those interested in investing in Swiss large- and mid-cap equities, the iShares MSCI Switzerland ETF can provide a convenient and efficient way to access this segment of the market.
The ETF caters to investors who want broad exposure to Swiss large- and mid-cap stocks, making it a strong option for:
Diversified Swiss Market Exposure: Investors looking for a wider range of Swiss equities beyond just blue-chip stocks may find the ETF appealing.
Long-Term Investors: Swiss large and mid-cap stocks offer steady long-term growth potential, making them suitable for those with an extended investment horizon.
Risk-Conscious Growth Investors: Investors seeking moderate risk may prefer the segment over more volatile small-cap indices, while still benefiting from growth in mid-cap stocks.
Dividend-Oriented Investors: Many large-cap Swiss companies offer consistent dividends, providing income generation alongside capital appreciation.
Balanced Portfolio Seekers: The mix of stability and growth makes the ETF, and others focused on Swiss large and mid-caps, a well-rounded option for investors who want exposure to multiple sectors without excessive risk.
