Anthropic, Dell, Nvidia, SpaceX – there seems to be no end of hype about AI. With almost the whole of the stock market now focused solely on big caps, at the moment investors in general are treating second and third-line stocks almost as a footnote. This has less to do with their business models than with a market that has become accustomed to few mega-trends and even fewer mega stocks in recent years. The result is that companies which do not appear to be directly involved in artificial intelligence are falling quickly through the cracks. This uncertain picture is also reflected in their key ratios: small and medium-sized companies have recently seen their valuations suffer record falls relative to large caps, even though historically they have tended to trade at a premium.
It is in precisely this atypical scenario that the FuW Risk Index comes into play. And not without success, either: the FuW Risk Portfolio has appreciated by 16% in the current year, surpassing the SMI Total Return by more than12 percentage points. The long-term data likewise speak for themselves – since March 1995, the FuW Risk Index has grown by around 1,406% in value, ahead of the SPI at 973% and even beating the SPI Small & Mid Caps, which has posted a gain of 1,250%. This trend is more than just a passing phase, though: it is a clear indication that the main index heavyweights are not the only option when it comes to generating real excess returns in Switzerland over a long period of time – provided investors are willing to accept greater volatility and look a little more closely.
The stand-out aspect of this sophisticated index concept is not just what is being bought, but how. In contrast to a purely mechanical index product, the selection is not made solely on the basis of a rigid set of rules. Instead, the experts at FuW primarily focus on undervalued domestic equities from the various segments, combining fundamental analysis with a technical assessment. A specially formed committee reviews the composition every quarter. The uniqueness of this approach is that it is deliberately proactive and opinion-driven, whilst also specifically seeking out mismatches in pricing What this looks like in practice is evident from some of the names that feature in the portfolio. Autoneum, for instance, is not a glamorous stock market darling, but a supplier to the automotive industry that has specialised in acoustic and heat management for vehicles and is a leading international player in this field. Since this sector is currently in crisis, the share is struggling. Operationally, however, the situation looks rather more promising: Autoneum is reporting only a slight drop in sales for 2025, but seeing a sharp rise in orders. The Winterthur company has also become more profitable, with the operating margin climbing to 5.5% from 5.3%. It is precisely these kinds of shares that come under excessive pressure in times of tariff fears, economic concerns and sectoral cyclicality. The fact that the holding in the risk portfolio has therefore recently been increased is in line with the index strategy: while the market looks elsewhere, the FuW experts cash in.
Schindler is another example. The company represents a different kind of underestimated quality. The group builds, installs, services and modernises lifts, escalators and moving walkways. Each day more than two billion people are transported just on the systems made by the company, which is based in Ebikon in Lucerne canton. This is a business with a high service element, a recurring revenue stream and a global presence. At the moment, however, the share is still suffering from the label of ‘boring industrial stock’. Schindler made a solid start to the year, though: although revenue is down, the group performed well in terms of net earnings, with the profit margin improving to 10.1%. The modernisation business in particular remains an important anchor of stability for the lift manufacturer. In local currencies, Schindler realised organic growth of 3.1% in orders received in 2025. That is precisely the point: the stock market often sees the skid marks first, the growth engine only later.
Source: LSEG