Understanding Multi-Asset ETPs (Smart Diversification Tips)

Did you know that more and more Swiss investors are turning to multi-asset ETPs? It makes sense. These products allow you to combine shares, bonds, commodities and even currencies into a single investment. I still remember the first time I came across one. My first thought was, “Everything in one product? How am I supposed to understand that?”

That is exactly why this step-by-step explanation exists. In this guide, you will learn what multi-asset ETPs are, why they are attractive, and how you can use them wisely as a Swiss investor. If you would like to see how different asset classes such as crypto, equities and bonds can be combined in one product, you can explore this overview here: (etps-krypto-aktien-obligationen-mischen).

No need to worry about complicated terminology. Everything is explained in a relaxed, practical way, including small tips that helped me personally when I first started.

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 main goal is broad diversification through a single investment.

Compared to traditional ETFs or individual investments, multi-asset ETPs benefit from combining different asset classes that may balance each other out. When one part of the market performs poorly, another may help stabilise overall performance.

For Swiss investors, this can be particularly convenient. One ETP can replace several separate investments and significantly reduce the effort needed to manage a portfolio. A practical example is the Smart All World ETP, which bundles multiple markets and asset classes in one product

Benefits of multi-asset ETPs for Swiss investors

The biggest advantage is diversification without complexity. Instead of buying many individual shares or funds, the ETP does the allocation work for you.

Multi-asset ETPs are also flexible. They can be traded on Swiss exchanges or internationally, depending on the product. Many of them are transparent and clearly show their composition, which is especially helpful for beginners.

From a Swiss tax perspective, they can also be used efficiently. If you want a clearer understanding of how ETPs are taxed in Switzerland, this guide provides a helpful overview

Risks and what to watch out for

Like any investment, multi-asset ETPs come with risks. Market fluctuations and currency movements can affect performance, especially when the product includes international assets.

Costs also matter. Management fees and possible tracking differences can reduce returns over time. It is worth checking these details before investing.

Finally, understanding the composition is essential. How much is allocated to equities, bonds or commodities? Looking at 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 to add stability to an existing portfolio. They often work well as a complement rather than a complete replacement.

Regular review is important. Checking once a month to see whether the allocation still fits your goals is usually sufficient. If needed, you can rebalance by adjusting your holdings.

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

Conclusion

Multi-asset ETPs are an excellent option for Swiss investors who want broad diversification without unnecessary complexity. They combine flexibility, accessibility and ease of trading in a single product.

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

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 asset class.

2. Can Swiss investors invest in international multi-asset ETPs?
Yes. Many ETPs are traded internationally. It is important to consider currency exposure and tax implications. More details can be found here: (etp-steuerfolgen-schweiz).

3. What risks do multi-asset ETPs carry?
Market volatility, currency movements, fees and asset allocation can all influence performance.

4. How often should I review a multi-asset ETP?
In most cases, reviewing the allocation once a month is sufficient.

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