In this article, SP500, SMI, and Bitcoin Comparison: Which Investment to Choose?, we will summarize the advantages, disadvantages, and past performance of these three strategies.
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Caution ⚠️ This article reflects a personal opinion and does not constitute investment advice. Investing carries a risk of losing money. Past performance is no guarantee of future results!
SP500 SMI and Bitcoin Comparison: Which Investment to Choose?
Investment Description
- SP500
👉 The SP500 is a stock market index that replicates the performance of the top 500 US stocks (USA).
Note that the SP500 is also known as the S&P500.
The goal of this stock index for a stock market investor is to track the stock market performance of all 500 major U.S. stocks.
- SMI
👉 The SMI is a stock market index that tracks the performance of the top 20 Swiss stocks.
For a stock market investor, the SMI allows you to track the stock market performance of all 20 Swiss stocks.
- Bitcoin
👉 Bitcoin is the most traded cryptocurrency in the world.
In reality, Bitcoin is simply a virtual currency, also known as cryptocurrency.
The difference between stock index and cryptocurrency?
🔺In reality, a stock index replicates the performance of a set of stocks, relative to a defined stock market strategy, without trying to exceed it. 😉
For example, with the SP500, the stock index blindly tracks the performance of the top 500 US stocks. And in reality, the performance will be reflected in the stock market performance of all stocks.
🔺Whereas a cryptocurrency, such as Bitcoin, is simply a virtual currency.
The difference between stock index and ETF?
If you decide to invest in a stock index, it's very likely that you'll want to use an ETF.
🔍 Indeed, buying a stock index is very expensive! Often, a stock index costs thousands of dollars.
👉 Whereas if you buy an ETF that tracks the market strategy of a stock index, such as the SP500, it is possible to track the performance of 500 US stocks by buying an ETF for "only" hundreds of dollars.
Moreover, there are ETFs that cost less than 50 Swiss francs or less than 50 euros, but which hold hundreds of shares.
Investment security
⚠️ Every investor has a different perspective on investment safety! This article represents my views only and does not constitute investment advice!
Here is my opinion on investment 😉
- SP500 – I give it a score of 8/10.
In my opinion, The risk of losing all the money with an SP500 is relatively low. Because there are approximately 500 shares traded.
Additionally, among the 500 US stocks traded, there are well-known multinationals that sell their products every day around the world, such as Apple, McDonald's, and Coca-Cola.
Not forgetting that The US stock market is the largest stock market in the world!
For example, as I write this, of the 25 global stocks with the largest market capitalization, 22 are US stocks.
- SMI – I give it a score of 7/10.
In my opinion, The risk of losing all of the money invested in an SMI ETF is relatively low. This is because there are "only" 20 stocks traded.
Furthermore, it should be noted that the Swiss stock market is very limited. In reality, there are only 4 or 5 Swiss stocks that make "competition" to the US stock market.
- Bitcoin – I give it a score of 5/10.
In my opinion, The risk of losing all the money invested is medium with bitcoin. Indeed, although Bitcoin is traded globally. In reality, Bitcoin is a virtual investment and the value is very volatile.
Additionally, with Bitcoin, there is only one crypto being traded.
Performance & Yield
🔍 One of the most important criteria for an investor is to invest in a stock market investment with a good return in the future.
⚠️ Please note that I cannot predict or guarantee future performance or yield❗
However, I have analyzed the past performance of each stock market strategy in this article. And I repeat, this is not a guarantee of future performance.
👉 Here are the results over 3 and 5 years, based on the results of the ZoneBourse comparative graph.
- 3 years (February 2022 to February 2025)
- Bitcoin (132%)
- SP500 (38%)
- SMI 500 (5%)
- 5 years (February 2020 to February 2025)
- Bitcoin (850%)
- SP500 (80%)
- SMI 500 (15%)
👉 We conclude that Bitcoin has achieved the best performance in recent years! Far ahead of the SP500 and very far ahead of the SMI.
🔍 On the other hand, we note that the annualized return is more regular with an SP500 than with a Bitcoin!
Price fluctuation
Now, let's analyze the fluctuation of the past performance of each investment.
🔍 For example, let's analyze the largest negative return spikes for each investment. Between February 2022 and February 2025:
- Bitcoin
November 2021 to July 2022 = -55%
- SP500
July 15, 2024 to August 5, 2024 = -7%
- SMI
July 15, 2024 to August 5, 2024 = -6%
(source: zonebourse1)
👉 Regarding the negative price fluctuation. We see that the SMI and SP500 are much more stable compared to holding bitcoin! Mainly during major stock market crashes.
Why is Bitcoin more volatile than the SP500 or SMI?
It's quite simple to explain!
In reality, the more stocks there are in an ETF, the lower the volatility should be (⚠️in theory)! In fact, the more shares there are in the ETF, the more the return is “neutralized” by the performance of all the shares.
Conversely, the fewer stocks there are in an ETF, the more weight each stock has on the ETF's performance. Unsurprisingly, the ETF's price fluctuation is more variable.
🔍 For comparison, here are the percentages of the top 3 stocks invested in an S&P 500 ETF and an SMI ETF. (⚠️ The percentage corresponds to the day I am writing this article and will change in the future).
| SMI | SP500 | |
|---|---|---|
| Number of shares | 20 | 500 |
| 1st action invested | Nestlé (17.1%) | Apple (7.2%) |
| 2nd action invested | Rock (15.8%) | NVIDIA (6%) |
| 3rd action invested | Novartis (14,1%) | Microsoft (5.8%) |
| % of the first 3 stocks in the ETF | 47% | 19% |
In the case of bitcoin, it is a simple virtual currency ⚠️
Therefore, it is not a surprise that Bitcoin's value has larger return spikes compared to an ETF that holds multiple stocks.
In addition, Bitcoin, unlike a stock, does not produce anything physical.. Because it is simply a virtual currency. Therefore, this aspect allows for greater stock market speculation regarding Bitcoin compared to an ETF.
🔍 In this comparison, here is how many stocks (or cryptocurrencies) there are per stock market strategy:
- Bitcoin = 1 single virtual cryptocurrency
- SMI = 20 shares (first 3 shares = + 45% of the ETF)
- SP500 = 500 shares (first 3 shares = – of 20% of the ETF)
Dividends distributed
👉 If we look at dividend distribution, the three stock market investments have different distributions.
Here is an average of the dividends distributed per year over the last 3 years (2022-2025).
- Bitcoin = 0% per year
- SP500 = 1.4% per year
- SMI = 2.5% per year
👉 Therefore, when it comes to dividends through 2025, the SMI outperforms the S&P 500 and Bitcoin.
Management fees
👉 Regarding management fees, there are different fees for each investment.
- Bitcoin – 0%
Bitcoin is a single cryptocurrency. Therefore, There are no management fees for holding a bitcoin (except for the transaction).
- SP500 – 0.05%
The majority of shareholders own an SP500 through an ETF. Typically, the management fees (TER) of the investment fund for an SP500 ETF are less than 0.05%.
- SMI – 0.20%
Unlike the SP500 ETF, there are not many SMI ETFs. Therefore, this low competition favors management fees (TER) of a rather high SMI ETF, around 0.20%
Commission on purchase and sale
To buy or sell any of the three listed stock market investments, you must use a trading account platform.
Note that a trading account requires a commission because it is a financial intermediary between the shareholder and the share (or cryptocurrency).
🔍 Note that commissions vary from one trading account to another. But as a general rule, with a cheap trading account, to buy a stock, ETF, or cryptocurrency, the commissions are:
- Bitcoin = 1%
- SP500 = 0.3%
- SMI = 0.5%
👉 Therefore, The SP500 is generally the one that charges the least commissions for buying or selling. With a cheap stock market account like Interactive Brokers, for example.
Passive Investor VS Active Investor
🔍 It's important to note that stock market investors don't always have the same long-term stock market goals!
👉 In reality, there are passive investors and there are active investors. That is to say:
- Active investor
👉 The active shareholder seeks to buy when the stock investment is “devalued” and sell when the stock investment is “overvalued”.
Therefore, his goal is for the stock to increase its price quickly in order to sell as quickly as possible!
For example, if Apple stock lost -20% in 3 months, the active investor will buy a lot of Apple stock with the hope of selling it for +20% (or more) a few months later.
In this example, the active investor waits for the stock to fall in price in order to buy in large quantities (in red). Then, they will wait for a significant market valuation in order to sell at a good profit (in green), over the shortest possible period.
Note that this method of investing is very speculative!
- Passive investor
👉 The passive investor is a shareholder who seeks good returns over the long term.
In this case, the passive shareholder seeks to buy a stock (or ETF) and let it grow for many years! In order to promote good growth of the stock over a long period!
For example, a passive shareholder buys Apple stock today without analyzing the current financial market. And they won't sell their Apple stock for many years.
In the meantime, he hopes that the stock will increase significantly in value. Although he is aware that the stock will have periods of stock market depression and periods of strong growth.
In this example, we conclude that the passive investor is looking for an exponential return over several years, taking advantage of compound interest over a long period.
Passive Investing VS Active Investing – The Summary
🔍 In short, passive shareholders don't analyze the stock market! They buy a growth stock as quickly as possible and try to hold it for as long as possible. This is to promote stock market growth.
Unlike the active shareholder, who waits to buy a stock at a "discount" price and wants to sell quickly as soon as the stock becomes "overpriced," the active investor is therefore playing with stock market speculation.
👉 Regarding the SP500, SMI, and Bitcoin. In my opinion, Bitcoin is more suitable for active investors, while the SP500 and SMI are more suitable for passive investors!
Conclusion
Here is a table to summarize this article, Comparison of SP500, SMI and Bitcoin: Which Investment to Choose? In my opinion!
| Bitcoin | SP500 | SMI | |
|---|---|---|---|
| Investment type | 1 Cryptocurrency | 500 US stocks | 20 Swiss stocks |
| Investment country | Global | USA (but traded globally) | Swiss |
| Investment security (in my opinion) | 5/10 | 8/10 | 7/10 |
| Past performance over 5 years (before 2025) | 👍👍👍 (850% in 5 years) | 👍👍 (80% in 5 years) | 👌 (15% in 5 years) |
| Price stability | 👎👎 | 👌 | 👌 |
| ETF/Crypto Management Fees | 👍👍👍 | 👍👍 | 👌 |
| Dividends distributed | 👎 | 👍 | 👍👍 |
| Purchase commissions (trading account) | 👌 | 👍👍 | 👍 |
| Passive investing (In my opinion) | 👌 | 👍👍👍 | 👍 |
| Active investment (In my opinion) | 👍👍 | 👎 | 👎 |
My opinion: Bitcoin, SP500 or SMI?
With this chart, in my opinion, although the performance of bitcoin is incredible. I believe that investing in an SP500 ETF is more comprehensive, more stable, with more consistent performance compared to Bitcoin and SMI.
In my opinion (not investment advice), if we focus on passive investing, here is my order of preference between the SP500, Bitcoin, or SMI. !
- SP500
- SMI and Bitcoin
However, Bitcoin is very attractive for investors who like to invest actively. That is, shareholders who are used to buying and selling stock market assets regularly.
Comparatif SP500 SMI and Bitcoin: Which Investment to Choose?
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SP500 SMI and Bitcoin Comparison: Which Investment to Choose?
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