What Is the underlying index that the EWL ETF aims to track?
5 min read
By Ron Koren, ETF Insider

What Is the underlying index that the EWL ETF aims to track?

When it comes to investing in Exchange-Traded Funds (ETFs), understanding the underlying index they track is crucial. In this article, we will explore the EWL ETF and the index it aims to track. Whether you're a seasoned investor or new to the world of finance, this FAQ guide will provide you with valuable insights into the EWL ETF.

What is the EWL ETF?

The EWL ETF is an abbreviation for the iShares MSCI Switzerland ETF. It is designed to provide investors with exposure to the Swiss equity market. The fund seeks to track the performance of the MSCI Switzerland Index, which represents a broad range of companies listed on the Swiss stock exchange.

The iShares MSCI Switzerland ETF is managed by BlackRock, one of the largest asset management companies in the world. It allows investors to gain access to a diversified portfolio of Swiss stocks in a convenient and cost-effective manner.

To learn more about the EWL ETF, you can visit the official iShares website 1 or the BlackRock website 2.

What is the MSCI Switzerland Index?

The MSCI Switzerland Index is a widely recognized benchmark for the Swiss equity market. It is designed to measure the performance of large and mid-cap Swiss stocks. The index includes companies from various sectors, such as financials, healthcare, industrials, and consumer discretionary.

By tracking the MSCI Switzerland Index, the EWL ETF aims to provide investors with returns that closely correspond to the overall performance of the Swiss stock market. It allows investors to gain exposure to Switzerland's leading companies and benefit from potential market growth.

EWL overlap What Is the underlying index that the EWL ETF aims to track?EWL overlap What Is the underlying index that the EWL ETF aims to track?

How does the EWL ETF track the underlying index?

The EWL ETF uses a replication strategy to track the MSCI Switzerland Index. This means that the fund holds a portfolio of securities that closely resembles the composition and weightings of the index. By investing in a representative sample of stocks included in the index, the ETF aims to replicate its performance.

The portfolio of the EWL ETF is periodically rebalanced to ensure that it continues to reflect the changes in the underlying index. The fund's managers monitor the index and make adjustments to the portfolio accordingly, maintaining a close correlation between the ETF's performance and the index it tracks.

What are the benefits of investing in the EWL ETF?

Investing in the EWL ETF offers several advantages. First, it provides diversification by giving exposure to a broad range of Swiss companies. This diversification helps spread the investment risk across multiple sectors and stocks, reducing the impact of individual company performance on the overall portfolio.

Second, the EWL ETF offers liquidity and transparency. As an ETF, it trades on major stock exchanges like a stock, allowing investors to buy and sell shares throughout the trading day at market prices. Additionally, the ETF discloses its holdings regularly, providing investors with transparency about the securities it holds.

In conclusion, the EWL ETF aims to track the performance of the MSCI Switzerland Index, which represents the Swiss equity market. By investing in this ETF, investors can gain exposure to a diversified portfolio of Swiss stocks conveniently and cost-effectively.

Please note that this article does not provide any investment advisory services. Before making any investment decisions, it is essential to conduct thorough research and consult with a financial advisor.

Source 1: EWL issuer website
Source 2: Reuters article about EWL

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FAQ

  • What is the EWL ETF?

    The EWL ETF, or iShares MSCI Switzerland ETF, is an exchange-traded fund designed to provide investors with exposure to Swiss equities.

  • What is the underlying index that the EWL ETF aims to track?

    The EWL ETF aims to track the performance of the MSCI Switzerland Index, which represents a broad range of large and mid-cap Swiss companies.

  • What types of companies are included in the EWL ETF?

    The EWL ETF includes companies from various sectors, such as financials, healthcare, consumer goods, industrials, and more, offering diversification within the Swiss market.

  • How does the EWL ETF work?

    The EWL ETF works by pooling investors' capital to purchase a portfolio of securities that replicate the performance of the underlying index, allowing investors to gain exposure to a diversified basket of Swiss stocks.

  • What are the advantages of investing in the EWL ETF?

    Investing in the EWL ETF provides diversification across Swiss companies, simplifies access to the Swiss market, offers potential long-term growth opportunities, and provides liquidity to investors.