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Access hard-to-reach markets with tracker certificates

21 May 2019 | 2 min read
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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.

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.

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