Access hard-to-reach markets with tracker certificates

Access hard-to-reach markets with tracker certificates

21 May 2019

For those who are interested in investing in otherwise difficult-to-access markets - such as crypto currencies, raw materials, trending themes or special investment strategies - tracker certificates could be an interesting alternative.

A tracker certificate is thus a product whose value development follows the underlying asset 1:1. This means that if, for example, you are interested in buying Bitcoin, but prefer to have your investments gathered in a portfolio of your online broker, then you could invest in TRACK BITCOIN VON. If the price of Bitcoin rises by 4 percent, your certificate will also do so. Remember, however, that it also means that if the price of the underlying asset falls - then your certificate will do so as well.

What are the benefits of tracker certificates?

To begin with, it's easy. If you are interested in, for example, investing in a new exciting sector that you think is the future but do not know which individual company you are going to invest in, such as 5G, then there are a lot of different companies and players to choose from. To make it easier for investors to expose us directly to the sector and technology, Vontobel offers the tracker certificate linked to theSolactive Technology 5G Performance Index, which gives you exposure to twenty different 5G companies, including American Tower, Apple, Ericsson, Nokia, Xiaomi, Softbank, Samsung, China Mobile and Broadcom. Today, many industrial and engineering companies are at the forefront when it comes to technology. The Industry 4.0 trend is about machines that talk to machines and automatically adjust and synchronize their work to create more efficient flows with fewer errors and thus lower costs but with higher quality as a result. If you want to invest in companies that are active in this sector, Vontobel's Solactive Nordic Industry 4.0 is a good way to get a broad exposure to the industry of the future.

Which markets, sectors and assets are available through tracker certificates?

In addition to Bitcoin and 5G, there are several other exciting markets to expose themselves to. If you are interested in sustainability, Vontobel also offers a certificate that follows the development of the index MSCI World IMI Select Sustainable Impact Top 20, which selects 20 companies that work with the UN's sustainability goals.


Investing in other countries requires even more preparatory work than if you only choose Sweden. However, not spreading their investments geographically entails an increased and unnecessary risk. Finding the right market and the right company, however, is difficult. Vontobel is the market leader when it comes to the analysis of Swiss companies and offers to anyone interested in the Swiss market Vontobel Swiss Research Basket which contains 120 companies, all of which are part of the Swiss Performance Index.

In China, about 28 million new cars are sold each year, which means that China itself accounts for almost one third of the world car market, which is an extreme increase since 2009, when China passed the US and Japan as the largest car markets. The rapid growth is mainly due to China's middle class increasing, which gives more opportunity to buy a car. If you believe that the development will continue in the future, you will be able to invest in Vontobel's certificate linked to the Soloactive China Automobile Index, which follows the development of well-known Chinese car companies such as Geely and BYD.


Important legal information

Legal notice

This information is in the sole responsibility of the guest author and does not necessarily represent the opinion of Bank Vontobel Europe AG or any other company of the Vontobel Group. The further development of the index or a company as well as its share price depends on a large number of company-, group- and sector-specific as well as economic factors. When forming his investment decision, each investor must take into account the risk of price losses. Please note that investing in these products will not generate ongoing income.

The products are not capitalprotected, in the worst case a total loss of the invested capital is possible. In the event of insolvency of the issuer and the guarantor, the investor bears the risk of a total loss of his investment. In any case, investors should note that past performance and / or analysts' opinions are no adequate indicator of future performance. The performance of the underlyings depends on a variety of economic, entrepreneurial and political factors that should be taken into account in the formation of a market expectation.

03/02/2023 11:21:09


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