Riding the Swiss Franc Surge with FXF ETF

Is the SNB Eyeing Negative Rates Again?

The SNB isn’t thrilled about the franc’s rise—but it may have to live with it. With inflation already flirting with zero and oil prices falling, deflation risks are creeping back onto the radar.

"Negative rates aren't something we'd be happy about," said SNB board member Petra Tschudin last week, "but it's an instrument that really helps us if necessary in stabilising inflation."

💡Quick Tip: As the Swiss franc strengthens, imports become cheaper—easing consumer costs but dragging inflation lower. With inflation near zero, the SNB may cut interest rates to stimulate the economy. Lower rates encourage borrowing and spending at home, while also making Swiss assets less attractive to foreign investors—putting downward pressure on the franc and helping to keep inflation from slipping into deflation.

The central bank's next scheduled policy decision is in June, but markets are pricing in a potential 25 basis point cut even sooner—possibly outside of a formal meeting.

An ETF Play for Investors? Meet FXF

If you think the Swiss franc still has room to run, there’s a simple way to gain exposure: the Invesco CurrencyShares Swiss Franc Trust

FXF

-0.79%

. It’s up nearly 10% over the past month and has attracted over $111 million in net inflows as investors pile into franc exposure.

FXF tracks the Swiss franc’s performance relative to the U.S. dollar by holding actual Swiss franc deposits, offering investors a direct hedge against dollar weakness or a strategic safe-haven allocation.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.