Factor Simulator – learn how factor certificates work!

Vontobel's simulation tool allows investors to learn in an easy and playful way the mechanisms of factor certificates and with regard of their market expectation the expected performance of the product.

What is your market expectation for your preferred reference instrument?

Reference instrument will
in a
price fluctuation environment in the next
You can change the reference value with drag and drop!X
Total lossX
Barrierevent at XX
The factor certificate with leverage
could, under realisation of the market expectation, reach a performance of X% after X days.

Characteristics of factor certificates


  • Optimally harness of stable (positive or negative) price trends.
  • Constant leverage (factor) over the product’s lifetime.
  • Easy access to a broad range of reference instruments.
  • No fixed expiry (open end).
  • No impact on the pricing of the factor certificate due to volatility.
  • No knock-out: the built-in barrier allowing for an intraday adjustment of the index can mitigate losses and delay a possible total loss.
  • Transparent structure due to the underlying factor index.


  • The leverage works both ways.
  • it also works if performance takes an unfavourable direction contrary to the market expectation.
  • The losses are also disproportionately high.
  • Extensive losses and even a total loss of the capital invested are possible.
  • If the barrier is touched and a resulting intraday adjustment is made, the valuation price falls to a lower value. This is comparable to an immediate realisation of the loss and makes a possible recovery more difficult. The barrier cannot be seen as a buffer, since it can only mitigate further losses.
  • Investors bear the currency risk: if the certificate is denominated in a different currency to the factor index, the performance of the factor index may deviate from that of the factor certificate, which may or may not be beneficial to the investor.
  • The investment does not pay any income such as dividends or interest.
  • Investors bear the risk of the issuer defaulting (issuer risk).