International investors have traditionally turned to these safe-haven currencies during times of market turmoil because of the countries’ historically low interest rates, along with their stable government and financial systems.

The stronger franc will weigh on exporters like Nestle, along with other small- and mid-sized companies with factories in Switzerland where workers earn some of the highest wages in Europe.

Related: A Strong Franc Hampers Swiss ETFs

“Taking a look at the chart, you’ll see that the bulls have recently sent the price above the resistance of a key long-term descending trendline. The close above the trendline in early April was an early signal of a major trend reversal and the recent pullback toward the support, and subsequent bounce suggests that the bulls are indeed taking control of the momentum. Active traders will likely keep a bullish outlook on the Swiss financial markets,” according to Investopedia.

For more news and strategy on Switzerland ETF market, visit our Switzerland category.

iShares MSCI Switzerland Capped ETF