Glossar -

Term	Definition of
Withholding tax	Flat-rate tax on capital gains in Germany.
Share	Company share that offers ownership rights and potential capital gains.
Share index	Basket of shares that measures the performance of a market.
Alpha	Excess return of a portfolio compared to the market.
Investment horizon	Period over which an investor wishes to remain invested.
Asset allocation	Allocation of capital to different asset classes.
Distributing	ETF or fund that pays out income regularly.
Backtesting	Historical simulation of a strategy to assess its robustness.
Bear Market	Market phase with falling prices over a longer period of time.
Behavioural Finance	Science about investors' misconceptions and behavioural patterns.
Beta	Measure of the fluctuation of a security compared to the market.
Bid	Maximum price that buyers are prepared to pay.
Broker	Trading platform for buying and selling securities.
Bull market	Market phase with rising prices over a longer period of time.
Buy and Hold	Long-term investment strategy without frequent reallocations.
Cash flow	Net cash inflow of a company.
Core satellite	Combination of a stable core portfolio and yield-orientated satellites.
Correction	Price fall of 10-20 % after previous rise.
Umbrella wikifolio	Wikifolio that invests in other Wikifolios.
Deflation	General decline in the price level.
Diversification	Diversification of capital to reduce risk.
Domicile	Country in which a fund is legally registered.
Drawdown	Loss from peak to trough.
Return on equity (ROE)	Profit in relation to equity.
Issuer risk	Risk of insolvency of the issuer.
Emission (certificate)	Process in which an issuer creates a tradable certificate for a wikifolio.
ETF	Exchange-traded fund that tracks an index.
Factor investing	Investing according to return drivers such as value or momentum.
Exemption order	Allows banks to exempt capital gains from tax up to the tax-free amount.
Free cash flow	Available cash inflow after investments.
Fund volume	Total value of all assets of a fund.
Growth Investing	Investing in high-growth companies.
Trading centre	Stock exchange or platform on which securities are traded.
Herd instinct	Tendency to follow the masses.
Home Bias	Overweighting of domestic investments.
Inflation	General rise in the price level.
Index funds	A fund that tracks an index (not necessarily an ETF).
Investability	Status of a wikifolio as soon as the certificate is issued and tradable.
ISIN / WKN	Unique identification number of a security.
Capital gains tax (KESt)	Tax on investment income, levied together with the solidarity surcharge.
Investment income	Income from interest, dividends or sales.
KBV	Price-to-book ratio of a company.
KCV	Price/cash flow ratio.
KGV	Price/earnings ratio of a company.
Correlation	Measure for the joint movement of two systems.
Layer	Structured risk classes in layers.
Key interest rate	Interest rate at which banks can refinance themselves with the central bank.
Limit order	Buy/sell at a fixed price or better.
Liquidity	How easily a security can be traded.
Market Order	Immediate execution at the current market price.
Maximum drawdown (MDD)	Largest historical loss of a portfolio from peak to trough.
Megatrend	Long-term global development with a major market impact.
Momentum	Strategy that focuses on recent strong winners.
Sample portfolio	Exemplary portfolio for orientation.
Order book	List of all buy and sell orders.
Order mask	Broker input mask for orders.
Outperformance	Return above a benchmark index.
Performance fee	Performance-related fee for positive development.
Physically replicating	ETF that actually buys the securities it contains.
Portfolio	Total of all securities held.
Quantitative investing	Rule-based investing on the basis of data.
Rebalancing	Restoration of the original portfolio weighting.
Yield	Yield of a system over a period of time.
Recession	Economic slowdown over several quarters.
Risk Parity	Strategy in which each asset class contributes an equal amount of risk.
Risk class	Categorisation according to fluctuation intensity.
Scoring model	Valuation system for stock selection.
Sharpe Ratio	Ratio of return to risk.
SICAV	European fund structure with variable capital.
Sortino Ratio	Return in relation to the downside risk.
Savings lump sum	Annual allowance for capital gains.
Spread	Difference between purchase and sale price.
Tax deferral effect	Deferral of tax payments into the future.
Stop-Buy Order	Buy order that is only triggered when a certain price is exceeded.
Stop-Limit Order	Order that becomes active when a stop price is reached.
Stop-loss order	Order to limit losses.
Swap ETF	Synthetic ETF that tracks an index by means of a swap.
Synthetic replicating	ETF that tracks an index via derivatives or swaps.
TER	Total expense ratio of a fund.
Accumulating	Income is automatically reinvested.
Tracking Difference	Deviation of the ETF return from the index.
Tracking error	Fluctuation of the deviation from the index.
Trailing stop	Dynamic stop loss that automatically adjusts to rising prices.
Trend filter	Rule for determining market trends.
Trend following	Strategy based on existing trends.
UCITS	European regulation for funds.
Universe	Set of all securities from which a strategy selects.
Underperformance	Return below a benchmark index.
Value	Investing in undervalued companies.
Loss aversion	Tendency to prioritise losses over gains.
Volatility	Measure of the volatility of a security.
Volatility Targeting	Adjustment of position sizes to a defined target volatility.
Advance lump sum	Flat-rate taxation of accumulating funds.
Wikifolio	Certificate that tracks the performance of a model portfolio.
Wikifolio certificate	Tradable security of a wikifolio.
Certificate fee	Ongoing costs of a Wikifolio certificate.
Interest rate turnaround	Change in the direction of monetary policy (e.g. from interest rate hikes to interest rate cuts).

Glossary