How does a wikifolio certificate work?

📘 Brief Explanation A wikifolio certificate is a structured product that mirrors the performance of a publicly visible model portfolio (wikifolio) one-to-one. As an investor, you are not buying a real stock package, but a certificate issued by the issuer (e.g., Lang & Schwarz), whose price is adjusted daily based on the trading decisions of the wikifolio manager. The manager trades derivatives such as CFDs in their model portfolio to also enable short selling and leverage – the certificate reflects these movements after fees. This means you participate in the strategy without having to place orders or open an account yourself. Important: You bear the full risk of loss, up to total loss, as there is no deposit protection, and you also pay an annual performance fee in addition to the initial issue surcharge. 🔍 Why This Matters A wikifolio certificate allows retail investors to passively replicate the trading strategies of experienced traders without conducting their own stock research. Its relevance lies in the low entry barrier, as even small amounts can be invested, while simultaneously achieving broad diversification across multiple underlying assets. However, the investor bears the full issuer risk of the certificate, as it is a debt security issued by the issuer, not direct st …