Asset Classes That You Can Invest in Using ETFs

Exchange-traded funds (ETFs) have become very popular, mostly because they can offer a low-cost solution for investing in diversified portfolios. But not all investors are aware of the different asset classes that you can invest in using ETFs. This moneyland.ch guide lists the different possibilities.

1. Stocks

Stock ETFs are familiar to a relatively large audience. Most stock ETFs passively replicate a stock index. However, there are also actively-managed ETFs whose stocks portfolios are put together by fund managers rather than following an index.

Many experts recommend using ETFs that replicate global stock indexes as the basis of a diversified investment portfolio. Many global stock indexes track thousands of different stocks from many different countries – though US stocks typically hold a dominant position. Apart from global stock ETFs, there are also ETFs that invest only in European stocks or Asian stocks. It is also possible to invest in stocks from one country, including Swiss stock indexes like the Swiss SMI and SPI indexes, the German DAX index, or the French CAC 40 index.

There are also ETFs that invest in specific industry sectors or based on investment themes. Examples include ETFs that invest in these stock categories:
Artificial intelligence stocks
Future foods stocks
Low volatility stocks
Momentum stocks
Technology stocks
Wide-moat stocks

2. Real estate

Real estate is a high-value asset class. For many investors, buying houses or apartments themselves is not a realistic option. Real estate ETFs offer an alternative way to invest in the real estate sector. Some ETFs invest solely in Swiss real estate, while others hold diversified, global real estate portfolios.

It is important to note, though, that your money is not invested directly into actual properties. Instead, the real estate ETF invests in the stocks of real estate companies. So in strict terms, real estate ETFs are, in fact, stock ETFs.

3. Bonds

Bond ETFs normally invest in a whole selection of bonds. Most of them passively replicate a bond index. You can invest in both corporate bonds and government bonds using ETFs. 

With bond ETFs too, there are ETFs that invest in bonds from specific countries and regions. In addition to ETFs for Swiss bonds, there are also ETFs that let you invest in a globally diversified bond portfolio.

4. Precious metals

Precious metals have a longstanding reputation as a crisis-proof asset. Precious metal ETFs that replicate spot price indexes offer an alternative way to invest in gold, silver, platinum, and palladium, other than buying physical metal. Swiss precious metal ETFs actually hold physical precious metal. You should be aware though, that unlike stock and bond ETFs, precious metal ETFs invest in just one asset, and are not diversified.

For other metals and commodities – such as copper – there are also alternative ways to invest besides holding them physically. But the selection of ETFs is very limited. Instead, there are numerous exchange-traded commodities (ETCs) that let you participate in commodities market developments. An ETC is also traded on a stock exchange, but is only a debt claim against its issuer – not a fund with assets that are segregated from those of its manager.

Finding the right ETF

There is an enormous selection of ETFs available to investors. Because of that, getting an overview and finding the most suitable ETF can be difficult. The moneyland.ch checklist for choosing an ETF gives you the most important information and tells you what to consider when choosing an exchange-traded fund.

5. Cryptocurrencies

If you prefer not to buy cryptocurrencies directly, you can still invest in this notoriously-volatile asset class by buying shares in cryptocurrency ETFs. Currently, there are spot price ETFs for both bitcoin and Ethereum (as per March 2025). These replicate the US dollar spot price of the cryptocurrency they invest in.  

Be aware that investing in cryptocurrency ETFs comes with a high risk of loss. The reason is that your money is only invested in a single asset. That sets cryptocurrency ETFs apart from ETFs that invest in a diversified portfolio.

6. Money markets

Money market funds are an alternative to conventional interest-yielding investment vehicles like savings accounts, fixed deposits, and medium-term notes. Money market ETFs invest in liquid, short-term securities, such as call deposits and bonds with very short remaining investment terms. The risk of loss is low, as are the potential returns. Money market ETFs generally have an even lower risk of loss than bond ETFs – which also invest in bonds with longer terms. 

At the present time, there are no passive money market ETFs that are denominated by Swiss francs. Because money market ETFs are denominated in foreign currencies, there is a certain currency exchange risk. If you want to invest in money market funds denominated by francs, then you can only do this using actively-managed money market funds with comparatively high fees.

Comparing fees is worth it

ETFs have a reputation for being cost-effective investment vehicles. It is generally correct that the fund fees (the total expense ratios or TERs) of passively-managed ETFs are generally lower than those of actively-managed funds. But it is still important to pay attention to total investment costs. There are big differences between stockbrokers in terms of the brokerage fees and custody fees they charge. You can compare stockbrokers on moneyland.ch.  

You can find useful information in the moneyland.ch checklist for choosing the right stockbroker.

Disclaimer: This article is provided for informative purposes only, and should not be considered investment advice. The publishers do not accept any liability in relation to this article.

More on this topic:
Compare Swiss stockbrokers now
Checklist for finding the right ETF
Using ETFs to invest: The pros and cons
How to invest money in Switzerland