What is the issuer risk with wikifolios?

📘 Brief Explanation The issuer risk with wikifolios describes the danger that the issuer of the certificate, Lang & Schwarz AG, becomes insolvent. As an investor, you are not buying a real share package, but a security that tracks the performance of the wikifolio. If the issuer goes bankrupt, you lose your invested capital, even if the underlying stocks in the wikifolio have risen. This risk exists independently of the performance of the wikifolio trader and is a typical characteristic of certificates. For retail investors, this means: You bear not only the market risk but also the default risk of the product provider. 🔍 Why This Matters The issuer risk with wikifolios is relevant for retail investors because it describes the risk that the issuer of the certificate on which the wikifolio securities are based becomes insolvent. Investors do not invest directly in the stocks of the wikifolio trader, but in bearer bonds issued by Lang & Schwarz AG. In the event of an insolvency of Lang & Schwarz AG, there is therefore a risk of total loss of the invested capital, regardless of the performance of the underlying wikifolio. This risk is particularly releva …