EWL allocates a combined 26.4% of its weight to consumer sectors while FSZ devotes almost 12% to those groups. That could be problematic as well do to modest spending by Swiss consumers.

“With a high 16.5 percent savings rate and household spending only 55 percent of money GDP, the Swiss economy appears at a critical crossroads in the face of undue CHF strength. Transforming consumption habits would pose a major historic hurdle because advancing a diversion of funds from savings to purchases of staples and luxuries by consumers to invigorate internal demand and accelerate living costs from their current deflationary state could take much time for households to make the psychological and financial adjustment,” according to S&P Capital IQ.

On a more upbeat note, Swiss stocks are not expensive with “a one-year forward p/e multiple of 15.5x, Swiss shares may appear cheap when compared with its historical average of 18.4x and its all-time high of 36.9x,” notes S&P.

The research firm rates EWL overweight.

iShares MSCI Switzerland Capped ETF