UBS Asset Management is introducing the first-ever exchange-traded fund (ETF) based on the Swiss Average Rate Overnight (SARON) with SIX. The ETF will be listed and traded on SIX Swiss Exchange with SIX also calculating the relevant rates, SARON and the “SARON index” which compounds the daily interest rates.
The combined efforts of SIX and UBS underline Switzerland’s commitment to developing efficient and resilient capital markets while solidifying SARON’s position as the leading CHF benchmark rate. As SARON establishes itself as the key CHF reference rate, the ETF offers institutional and retail investors a new tool for accessing CHF money markets, enhancing liquidity and diversification.
This ETF also aligns with the European trend of expanding money market funds, providing CHF investors with a secure and transparent investment vehicle for managing short-term exposure. By replacing traditional rates like LIBOR, SARON offers improved transparency and reliability, reinforcing market confidence and stability.
Raimund Müller, head of ETF & Index Fund Sales Switzerland and Liechtenstein at UBS Asset Management, said in a statement that with this development “investors can efficiently access low-risk short-term cash and liquidity management tools with higher yield opportunities than for traditional bank deposits.”
Christian Bahr, head of Indices at SIX, said in a statement: “Switzerland continues to lead in financial innovation, keeping its capital markets competitive and aligned with global best practices.”