Index certificate

With Index certificates investors can participate one-to-one in the development of an exchange index – without actually buying the underlying shares in that comprise that index. Every index certificate has a subscription rate (e.g., 1:10 or 1:100) that defines the value of the certificate in relation to the index listing. The investor invest broadly diversified and transparently with minimal effort and smaller amounts.

If the underlying share increases in value, the value of the certificate increases in analog to the gain; with every setback, the certificate value declines accordingly.

Investors should think about currency risks when investing in index certificates that track a share index outside of the euro zone. And they should pay attention to whether the underlying index is a performance or price index. With a performance index, all dividends and profits from subscription rights flow into the index value. In contrast to that, price indices show the pure development of the shares and thus the price declines that usually accompany dividend payouts.

Index certificates are particularly interesting to investors that want to profit from positive capital-market developments, but who don’t want to deal with the daily price developments of several individual shares.