- A global ETF is three quarters in dollars, whatever the currency on the label.
- The rise of the franc has cost about 1 to 2 points of return a year, but global equities still earned far more than an account.
- Hedging costs the interest rate gap: on long-term equities, it rarely pays.
A global ETF is mostly dollars
The United States makes up almost three quarters of the MSCI World index: your global ETF therefore largely follows the dollar. Whether the ETF is listed in francs, euros or dollars changes nothing. The currency on the label only avoids a conversion when you buy; the risk comes from what the fund holds.
What the strong franc has cost
Since 2000, the dollar has lost about half its value in francs. For an investor who counts in francs, every rise of the franc reduces the value of their foreign shares.
Source: SNB, annual average rates. In September 2026, the dollar was worth about 0.82 francs.
But the currency loss did not wipe out the return. Since the end of 1987, the global equity index has returned about 9% a year in dollars, and about 7.7% a year in francs, dividends reinvested and before fees. The strong franc has therefore cost a little more than one point a year over the long run, and about two points over the last ten years.
Hedging: what it costs
A "CHF-hedged" ETF neutralises the currency, but pays every year roughly the interest rate gap between the franc and the other currency. Against the dollar, that is often more than one point a year. And the franc has low rates precisely because it is in demand: hedging makes you pay up front for much of what it protects you from.
On equities held for more than ten years, hedging mainly smooths the swings, generally without improving the average result. It makes more sense for bonds: their return is low and stable, and a currency move of a few percent can wipe it out in one go.
What you really control
You do not control the franc, but you control your exchange fees and how much of your wealth is exposed.
- Conversion fees: converting at an online broker costs little; an automatic conversion at a bank can cost around 1% on every purchase. Details in Swissquote, Interactive Brokers or your bank.
- Money you will need soon: your emergency fund and any project within 5 years stay in francs.
- Your total wealth: salary, pension fund, home, savings account are already in francs. The dollar share of your ETF is often a small part of the whole.
Going further
The strong franc is not a law. It has risen over the long term, but not all the time: between 2001 and 2007, the euro went from about 1.51 to 1.64 francs. Hedging after a sharp rise of the franc often means buying insurance after the accident.
Think about the currency you will spend in. If you plan to retire in your home country, your future spending will be in euros, pounds or dollars. For you, keeping everything in francs would also be a currency bet.
Swiss shares have no currency risk, but they have another one. A few large companies weigh very heavily in them: that is concentration, not diversification. The details are in Swiss shares or the world.
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Frequently asked questions
Does a global ETF listed in francs protect me from currency risk?
No. It holds the same shares in dollars, euros and yen as an ETF listed in dollars. It is the content of the fund that creates currency risk, not the currency on the label.
How much has the strong franc cost Swiss-based investors?
On global equities, about 1 to 2 points of return a year depending on the period. Since the end of 1987, the MSCI World index has returned about 9% a year in dollars and about 7.7% in francs, dividends reinvested and before fees: still far more than a savings account.
Should I buy a CHF-hedged ETF?
Hedging costs roughly the interest rate gap between the franc and the other currency, often more than one point a year against the dollar. On equities held for more than 10 years, it generally costs more than it protects. It makes more sense for bonds.
Will the franc keep rising?
Nobody knows. The franc has risen over the long term, but not all the time: between 2001 and 2007, for example, the euro went from about 1.51 to 1.64 francs on an annual average.
I will retire in my home country. Does that change anything?
Yes. If your future spending will be in euros, pounds or dollars, holding only francs is also a currency bet. The currency that matters is the one you will spend in.
How do I cut currency exchange fees?
Convert rarely and with a cheap provider: at an online broker, conversion costs little; an automatic conversion at a bank can cost around 1%. Or buy the CHF-listed version of the ETF, which avoids the conversion without changing the risk.
Sources: SNB, exchange rates (annual and monthly averages, data.snb.ch) ; MSCI, MSCI World index factsheet at 30.09.2026 (country weights, annualised gross returns in USD) ; ViaVest calculations of the return in francs from these two sources.