Report published August 26, 2026
UBS Report: SMI Rebalancing, Health Care Concentration, and the Case for Diversification
Source and citation context
- Issuer
- UBS
- Report date
- August 26, 2026
- Analysis as of
- Not stated in source
Authors / editors: Alessandro Bee (Economist)
Finvaulta summarizes UBS's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
The annual rebalancing of the Swiss Market Index (SMI) on 21 September will add Galderma and Sandoz while removing Swisscom and Kühne+Nagel, increasing the health care weighting to around 40%. UBS recommends diversifying beyond the SMI into Swiss mid-caps and global equities to mitigate concentration risk and capture economic recovery.
Key Takeaways
- 1.Galderma and Sandoz will replace Swisscom and Kühne+Nagel in the Swiss Market Index (SMI) on 21 September.
- 2.The additions will raise the SMI's health care weighting from ~36% to ~40%, increasing the index's concentration risk and vulnerability to sector volatility.
- 3.Investors should diversify beyond the SMI into Swiss mid-caps (SMI Mid), which offer lower health care concentration, attractive relative valuations, and cyclical exposure to economic recovery.
Table of Contents
- Swiss benchmark index is heavily weighted toward health care
- Diversify into mid-sized listed companies
- Global asset class preferences definitions
- Appendix
- Risk Information
Report data
Getty UBS
| Metric | Estimate | Context |
|---|---|---|
| SMI health care sector weighting (current) | 36.0% | Health care weighting in the SMI prior to rebalancing |
| SMI health care sector weighting (post-reconstitution) | 40.0% | Expected health care weighting in SMI after addition of Galderma and Sandoz |
| SMI YTD performance | 8.5% | Performance of the Swiss Market Index since the beginning of the year |
| Roche YTD performance | 13.0% | Performance of Roche shares since the beginning of the year |
| Novartis YTD performance | 15.0% | Performance of Novartis shares since the beginning of the year |
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CIO Essentials is shown in chronological order through this edition, published on August 26, 2026.
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Authors / Editors
Reported Data Context
- SMI health care sector weighting (current): 36.0 % (Current (August 2026))
- SMI health care sector weighting (post-reconstitution): 40.0 % (Post-21 September 2026)
- SMI YTD performance: 8.5 % (YTD 2026)
- Roche YTD performance: 13.0 % (YTD 2026)
- Novartis YTD performance: 15.0 % (YTD 2026)