The SWX Swiss Exchange has launched a new segment for exchange traded structured funds. ETSFs combine the investment flexibility of structured products with the legal security provided by investment funds. Private and institutional investors may therefore benefit from the advantages of both investment vehicles. In contrast to ETFs, which track a specific index, ETSFs involve a traditional investment instrument that is combined with a derivative or baskets of underlying instruments from various asset classes such as shares, bonds or commodities. Depending on how the fund’s assets are structured, it is possible to participate in the underlying instrument(s), optimise yield or protect the invested capital. For ETSFs, market makers will be engaged to post firm quotes and ensure an orderly market. ETSFs will be traded directly on the high-capacity transaction platform, “Quote System“. The first three funds were listed on SWX by Bank Vontobel and commenced trading on 26 November 2007. They are based on a quantitative dynamic strategy focused on European or American stocks.