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Created on 07.10.2021

Themed certificates? How to invest in global trends

Themed certificates offer an interesting opportunity for investors who want to participate in the future global changes in the world and the resulting challenges and opportunities. You can find out everything you need to know about themed certificates here.

Global trends are significantly transforming the world and have a major impact on our lives. There are many companies that focus on such future topics or megatrends. In the food industry, for example, there is a clear trend towards sustainable and healthy food. Electromobility is another megatrend. There are more and more electric vehicles on the roads around the world, while how society deals with waste is one of the greatest challenges of our time.

Tracker certificates – a popular instrument

Tracker certificates are participation products and fall under structured products. These are arguably the best-known and most widespread type of this product category for diversified investment in global trends. You can find out exactly what a structured product is in the article “Structured products to supplement your portfolio”.

Tracker certificates enable investors to participate in a positive or, depending on the structure, also a negative development of the underlying assets used and thus to focus on thematic, sector-specific or geographical areas. To enable investors to participate in global trends, PostFinance offers various tracker certificates that can be used to participate in global trends.

How does a tracker certificate work?

Tracker certificates wholly replicate the performance of a specific underlying asset or a portfolio of securities. The advantage of this is that even small amounts can be invested in a large number of securities, such as shares, so that each share doesn’t have to be bought individually. The certificate’s investment universe can be flexibly composed of an index or a portfolio of several securities – also known as a basket. As an investor, you are therefore broadly diversified and can spread the risk if individual securities in the certificate do not perform as desired. You can read more about diversification in the article “Diversification – why you shouldn’t put all your eggs in one basket”.

Reduce risk more consciously

Even though technological progress has brought about significant changes in many sectors in recent years, it’s important to note that many trends are only at the beginning of their development cycle and there is still a lot to come. However, there is also the risk of exaggeration, which can lead to investing your money too early or even in completely the wrong company. Those who want to build up assets over the long term shouldn’t allow themselves to be easily persuaded by short-term market movements and should also not “put all their eggs in one basket”, but if possible only invest part of their assets in such trend themes. The core satellite approach offers a good investment ratio here, where the largest part of the assets (core) is invested in a broadly diversified way in investments that are stable in value such as bonds with a good credit standing, shares of major corporations, real estate or raw materials. The remaining part of the assets (satellite) can then be used to invest in a more targeted way. You can find out more about this in the article “Defining and implementing the right investment strategy”.

With tracker certificates, PostFinance gives investors access to selected investment strategies, different markets, trends and investment themes.

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