Equity: Switzerland - Total Market

FSZ Top Performer Intra-day
Price $50.34
Today’s Change +0.55%(1.10)
3:31pm 07/26/2017
EWL Bottom Performer Intra-day
Price $34.73
Today’s Change +0.11%(0.32)
4:00pm 07/26/2017
  • Overview
  • Efficiency
  • Tradability
  • Fit

ETF.com Insight

Investors seeking broad exposure to the Swiss equity market have two very different choices. The first is EWL, a plain-vanilla fund that selects the largest companies in the Swiss equityexposure to the Swiss equity market has 2 very different choices market and weights them by market capitalization. EWL is the more established of the two funds, with over 95% of the segment's assets. In comparison, FSZ offers drastically different exposure: It selects and ranks the top 40 securities from the S&P Switzerland BMI universe with the most appealing growth or value factors then weights them equally within five quintiles.
FSZ's tiered equal-weighting scheme tilts it substantially away from the market-cap-weighted EWL (and our benchmark). Compared with the neutral market and its only competitor, FSZ overweights mid- and small-caps, with a weighted average market cap less than 1/10 the benchmark's. EWL and FSZ also have very different sector exposures. EWL has thrice the health care and consumer non-cyclicals exposure as FSZ. Instead, FSZ heavily overweights financials and industrials.
Both funds charge fairly high expense ratios, but FSZ's 0.80% dwarfs EWL's 0.51%. Meanwhile, FSZ is challenging to trade at the block level whereas EWL is very liquid all around. In all, EWL's solid coverage, deep liquidity and sound management make it the clear Analyst Pick between the two funds. Investors need to be big believers in FSZ's quant-based strategy to justify its higher fee and illiquidity. (Insight updated 07/26/17)

All Funds (3)

EWL $1.24 B 1240722525 Concentrated exposure

B 97
E
87
87
T
90
90
F
97
97

FSZ $192.32 M 192324000.90852 Alpha-seeking

D 53
E
65
65
T
57
57
F
53
53

HEWL $5.23 M 5228340 Ignore bad tracking

N/A 0
E
0
-1
T
0
-1
F
0
-1

ETF.com Grade as 07/20/17

Equity: Switzerland - Total Market

1 Year Total Return NAV
Performance  [as of 07/25/17] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
Benchmark: MSCI Switzerland Investable Markets1.04%7.16%20.38%18.10%3.52%12.19%--
B 96.696005EWL1240722525EWLiShares MSCI Switzerland Capped ETF0.96%6.60%20.03%18.69%3.20%11.33%3.88%
D 53.423968FSZ192324000.90852FSZFirst Trust Switzerland AlphaDEX Fund1.47%8.30%23.96%30.58%7.06%15.11%--
N/A 0HEWL5228340HEWLiShares Currency Hedged MSCI Switzerland ETF-1.02%2.58%13.64%16.51%------
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

ETF.com Efficiency Insight

EWL and FSZ are separated primarily in Efficiency by their expense ratios: EWL charges 0.51%, while FSZ nails investors with a hefty 0.80% fee. FSZ is likely to have more turnover than theFSZ has tracked with a disturbing amount of variability cap-weighted EWL as well, adding to embedded trading costs. FSZ has also tracked with a disturbing amount of variability, where EWL has been fairly consistent.
On the tax front, EWL made forced capital gains distributions for a few years over a decade ago, but has been able to avoid them ever since. FSZ has not distributed any capital gains in its short life.
While both funds have stable asset bases, sufficient to avoid any undue closure risk, EWL is more than an order of magnitude larger than FSZ. (Insight updated 07/26/17)

All Funds (3)

87
86.721821
65
65.118406
N/A
0

ETF.com Grade as 07/20/17

Equity: Switzerland - Total Market

Tracking Difference (12 Month)

Ticker Expense Ratio Median Max. Upside Max. Downside Max LT/ST Cap Gains Rate Rule Legal Structure Fund Closure Risk Efficiency
EWL iShares MSCI Switzerland Capped ETF 0.48% -0.20% -0.00% -0.54% 20.00% / 39.60% Low 86.721821
FSZ First Trust Switzerland AlphaDEX Fund 0.80% -0.63% 0.79% -4.41% 20.00% / 39.60% Low 65.118406
HEWL iShares Currency Hedged MSCI Switzerland ETF 0.51% -- -- -- 20.00% / 39.60% High 0

ETF.com Tradability Insight

EWL and FSZ are a mile apart in on-screen liquidity. EWL trades over $15 million on most days, with a tight 0.04% average spread ($0.01). In comparison, FSZ trades roughly $500K daily andEWL and FSZ are a mile apart in on-screen liquidity bid/ask spreads have averaged 0.17%, making limit orders a must.
The difference is even more apparent at the block level. FSZ's underlying basket is illiquid enough that creates and redeems will significantly move the market, and its weaker secondary liquidity means that market makers will have a harder time unloading their hedges. EWL, in contrast, has a highly liquid basket which earns it a perfect block liquidity score.
iNav will be most valuable as a reference point for setting limit orders early in the US morning when each fund's underlying securities are trading in Switzerland at the same time at the ETFs are trading in the US. (Insight updated 07/26/17)

All Funds (3)

90
90.467406
57
56.784423
N/A
0

ETF.com Grade as 07/20/17

Equity: Switzerland - Total Market

Ticker Median Daily Volume ($) Average Spread Creation Unit/Day Market Hours Overlap Underlying Volume/Unit % Creation Cost Per Unit (%) Impediment to Creations Score - Tradability
EWL iShares MSCI Switzerland Capped ETF $24.37 M 0.03% 5.67 31.00% 0.13% 0.03% None 90.467406
FSZ First Trust Switzerland AlphaDEX Fund $344.13 K 0.20% 0.14 31.00% 0.81% 0.04% None 56.784423
HEWL iShares Currency Hedged MSCI Switzerland ETF $10.2 K 0.13% 0.00 100.00% 7.57% 0.01% None 0
Spread History
Premium/Discount History

ETF.com/ Block Liquidity

EWL
5
4
3
2
1
FSZ
5
4
3
2
1
HEWL
5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of each ETF.

ETF.com Fit Insight

EWL and FSZ have wildly different portfolios.
EWL holds a broad, comprehensive basket of Swiss securities. Like the Swiss market itself, it is highly concentrated: Its top threeEWL has significant exposure to local Swiss banks and insurance companies holdings represent nearly 50% of its portfolio, and the Swiss giant Nestle accounts for 16% alone. The fund is heavily invested in health care, financial and consumer stocks.
FSZ's quant-based algorithm is currently pointing the fund toward mid- and small-caps: Its weighted average market cap is just $14 billion, compared with $131 billion for EWL. The two also make very different sector bets: FSZ has twice as much basic materials exposure as EWL. It also has significant exposure to local Swiss banks and insurance companies. A fan would argue that FSZ gives exposure to domestic Switzerland—the Swiss companies that Swiss people buy things from—whereas EWL holds mostly multinationals.
Ultimately, the two funds approach the Swiss market from two very different angles. If neutral exposure is what you want, choose EWL. If, instead, you like the idea of a more diverse quant model that tries to beat the Swiss market, FSZ may be the fund for you. (Insight updated 07/26/17)

All Funds (3)

97
96.696005
53
53.423968
N/A
0

ETF.com Grade as 07/20/17

Equity: Switzerland - Total Market