Background: Trade Restrictions and Their Lifting
Trigger for the Restrictions
In 2019, the EU withdrew Switzerland’s recognition of regulatory equivalence due to disagreements in bilateral trade. In response, Switzerland enacted a trading ban on Swiss stocks on European exchanges, which also blocked trading in Germany.
Consequences for Investors
During this time, German and other European investors could only acquire Swiss stocks indirectly – for example, directly through the Zurich Stock Exchange SIX, over the counter (OTC trading), or through American Depositary Receipts (ADRs), which are actually intended for the US market. These alternatives often came with higher costs, poorer transparency regarding exchange rates, and larger spreads.
Restart from May 2025
Since spring 2025, regular trading in Swiss stocks on German exchanges like Xetra, Frankfurt, or Munich has been possible again. This means:
- Direct Access: German investors can now easily and cost-effectively invest in large Swiss companies such as Nestlé, Roche, Novartis, or Richemont.
- More Diversification: The resumption of trading promotes the diversification of portfolios in the German-speaking world.
- Better Conditions: Transaction costs decrease due to direct access to the major trading venues; moreover, liquidity and pricing improve.
Importance for Investors
Diversification
Swiss companies are internationally leading in industries such as pharmaceuticals (Roche, Novartis), consumer goods (Nestlé), luxury goods (Richemont), and insurance (Zurich). Access to these stocks now allows investors from Germany and Europe to broaden their portfolios more easily than before.
Indices as a Guide
There are various indices available for investors to choose from:
- SMI: Includes the largest publicly traded companies in Switzerland.
- SPI: Covers almost all publicly traded companies.
- SLI & MSCI Switzerland Index: Further options for ETF investors to reflect the entire market or specific segments.
| Index | Number of Titles | Special Feature |
|---|---|---|
| SMI | 20 | Largest & most liquid companies |
| SPI | ~204 | Almost complete market coverage |
| SLI | 30 | Largest titles of the SPI |
| MSCI Switzerland | ~42 | Large & medium-sized companies |
Conclusion
The restart of trading in Swiss stocks on German and European exchanges marks an important step towards greater flexibility and diversity for private investors in the German-speaking area. After years of limited opportunities, they now benefit from easier access to a wide range of high-quality investments – a true gain for diversification and long-term wealth building.