Invest in equality

Migros Bank is known for being fair and people-oriented. It is there for everyone. Just like ellexx. We fight for financial education for all and are committed to a more equitable financial world. Migros Bank is an exception in the banking world. In 2019, it abolished its internal bonus system. This ethical approach to business won us over.

You can purchase it from all Swiss banks, neo-banks, or digital trading platforms. Generate a PDF for your bank on our website or email the product name to your bank advisor: «Migros Bank ellexx Gender Equality Basket», security number «110 588 569». Alternatively, simply search for «Migros Bank ellexx Gender Equality Basket», security number «110 588 569» on your investment app and purchase the product with a click.

With the ellexx equity product, you invest in companies that are committed to gender equality. The ellexx equity product was the first of 40,000 structured products in Switzerland to focus on gender equality.

Gender equality
Companies that are in line with the United Nations' Sustainable Development Goal (SDG) number five. The Sustainable Development Goals are international development goals that address the most pressing challenges facing our world. SDG 5 stands for gender equality and the empowerment of girls and women. In order to evaluate whether companies are making a positive contribution to SDG 5, the following aspects, among others, are taken into account:

• Proportion of women in the workforce: At all levels. Gender diversity should not only be evident at the top, but throughout the entire company, including in senior management and on the board of directors.
• Discrimination or harassment based on gender: Companies have no controversies related to issues such as wage discrimination or sexual harassment.
• Discrimination against stakeholders: The companies have no controversies related to forced labor, discrimination against workers, or customer discrimination.

Sustainability
Companies that have a good sustainability rating and are classified as responsible by our investment partner, Migros Bank.

Company quality
Companies that offer high quality must ultimately also deliver the right returns. For a stock to be selected, the Bloomberg Analyst Consensus – a benchmark for a company's future performance – must be greater than or equal to 3. In addition, all companies in the ellexx stock product have a market capitalization of at least one billion dollars.

When selecting companies, our investment partner bases its decision on all stocks that, according to MSCI, one of the world's largest sustainability rating agencies, are in line with SDG 5.

The Gender Equality Basket contains a total of 30 stocks from companies in Switzerland, Europe, and the US.

The composition of the Gender Equality Basket is reviewed on an ongoing basis. As this is an actively managed product, companies may be removed at any time if they no longer meet the selection criteria.

Overall, ellexx aims to support women in achieving financial independence and security, while promoting gender equality, sustainability, and social responsibility in the financial sector. With ellexx, we want to strengthen social investing: this means that more money, investment, and attention flow into companies and executives that offer equal opportunities and fair jobs, take diversity and inclusion into account, and operate in a socially responsible and sustainable manner.

The ellexx Gender Equality Basket is an actively managed product and therefore more expensive than, for example, a passive ETF fund that tracks an index. There are over 40,000 so-called «tracker certificates» in Switzerland – but the ellexx equity product was the first in Switzerland to focus on gender equality. (A tracker certificate tracks the performance of a «basket» of securities on a one-to-one basis. Tracker certificates are mainly used for thematic, sector-specific, or geographical orientations of a securities basket.)

The product was criticized for being unsuitable for beginners in particular and too expensive. The Gender Equality Basket was neither designed as an entry-level product nor ever advertised as such. From the outset, the ellexx Gender Equality Basket was intended as a component in a diversified portfolio for anyone wishing to invest specifically in companies that promote equal opportunities. ellexx also offers independent investment advice, explaining the risks of investment products and assessing whether the product is suitable. At 1.1 percent, the product's fees are in line with the usual level for actively managed investment products and also include hedging to offset the risk of currency differences with the Swiss franc. Of the 1.1 percent fee, the issuer (ZKB) receives 0.3 percent. The remaining 0.8 percent is split equally between Migros Bank and us. We are therefore entitled to 0.4 percent for our cooperation with Migros Bank. From our point of view, the product is an innovation on the Swiss financial market at a price comparable to similar products on the market.

In general, it is impossible to determine with certainty in advance whether it is a good or bad time to invest. Of course, it would be best to invest when prices are at their lowest and sell your investments when they are at their highest. However, this is practically impossible to predict in the present. Therefore, it is best to invest at regular intervals. In general, the timing of your investment is not as important as your investment horizon. The longer your investment horizon, the greater your chances of a return.