According to SIX, Q1 sees record turnover and trades in Swiss ETFs, marking the fourth consecutive increase and larger average ticket sizes.
The Swiss Exchange (SIX) has reported a remarkable surge in exchange-traded fund (ETF) transactions, marking a significant milestone in the financial landscape. As the ETF market continues to evolve, the first quarter of 2025 has set new records in turnover and the number of trades, indicating a robust appetite for these investment vehicles.
Record-Breaking Turnover and Trades
According to the latest data from SIX, the Swiss ETF market has experienced a notable increase in both turnover and the number of trades for the fourth consecutive quarter. The first quarter of 2025 saw a staggering turnover of 32.086 billion Swiss francs, the highest recorded since the first quarter of 2022. This figure represents a remarkable 102.70 percent increase compared to the same period last year and a 27.01 percent rise from the previous quarter.
The number of trades also reached a new high, with 844,174 transactions executed in the first quarter. This figure reflects a 62.43 percent increase year-on-year and an 18.63 percent increase compared to the last quarter. Such growth underscores the increasing popularity of ETFs among investors, who are increasingly turning to these funds for diversification and liquidity.
Increased Average Deal Size
One of the most noteworthy trends observed in the first quarter of 2025 is the increase in the average deal size, which reached 40,786 Swiss francs. This marks a significant reversal of the downward trend that has persisted since 2019. The median deal size also confirmed this trend reversal, showing an 11.57 percent increase compared to the last quarter of 2024.
The data indicates that all ticket sizes have significantly exceeded their previous year’s figures, with the most substantial increase recorded among transactions exceeding 1 million francs, which surged by an impressive 199.81 percent. This trend suggests that institutional and high-net-worth investors are becoming more active in the ETF market, contributing to the overall growth in transaction volumes.
Growth in Newly Listed ETFs
The supply of newly listed ETFs on the SIX Swiss Exchange has also seen a substantial increase, with 65 new units introduced in the first quarter of 2025. This figure represents an increase of eight units compared to the previous quarter. As of March 31, 2023, the total number of ETFs listed on the SIX Swiss Exchange reached 1,930 units, reflecting a growth of 45 ETFs since the fourth quarter of 2024.
Among the new listings, nearly one-third were bond ETFs, while just over 40 percent were equity ETFs focused on country indices. Additionally, approximately 10 percent of the new listings were equity styles and strategy ETFs. Interestingly, the once-dominant theme of sustainability has receded somewhat, indicating a shift in investor preferences and market dynamics.
Performance by Asset Class
In terms of asset class performance, equity ETFs continued to dominate the market, accounting for 77.42 percent of total turnover by the end of the first quarter, up from 72.90 percent in the previous quarter. The strong performance of equity and commodity ETFs contributed to the overall increase in turnover, while bond ETFs and a smaller number of other ETFs experienced slight declines.
The most significant increase in turnover by asset class was attributed to equity styles and strategy ETFs, which saw a remarkable rise of 132.42 percent. This surge indicates a growing interest in specialized equity strategies, as investors seek to capitalize on specific market trends and opportunities.
Implications for Investors and the Market
The record-breaking figures in the Swiss ETF market have several implications for investors and the broader financial landscape. The increasing turnover and number of trades suggest a growing confidence among investors in the ETF market, driven by the need for diversification and efficient access to various asset classes.
Moreover, the rise in average deal sizes indicates that institutional investors are becoming more active participants in the ETF space, potentially leading to increased liquidity and tighter bid-ask spreads. This trend may also encourage more issuers to launch innovative ETF products, catering to the evolving needs of investors.
As the market continues to grow, it is essential for investors to remain informed about the changing dynamics and trends within the ETF landscape. Understanding the various asset classes and strategies available can help investors make more informed decisions and optimize their portfolios.
The first quarter of 2025 has marked a significant turning point for the Swiss ETF market, with new records in turnover, trade volume, and average deal size. As the market continues to evolve, investors are presented with a wealth of opportunities to diversify their portfolios and capitalize on emerging trends. The growth in newly listed ETFs and the increasing participation of institutional investors signal a promising future for the ETF market in Switzerland. As we move forward, it will be crucial for investors to stay abreast of market developments and adapt their strategies accordingly to harness the full potential of this dynamic investment vehicle.
