Leonteq, Swissquote and PostFinance are joining forces, the three financial service providers launching the tracker certificate on the Swissquote Global eMobility Index at the end of October. While Leonteq is acting as issuer and PostFinance has assumed the role of guarantor, the idea behind this structured product originates with Swissquote. The online bank's experts have added this exciting and promising topic to their "Themes Trading" series. Increasing numbers of electric vehicles are on the road around the globe. In addition to the government purchase incentives introduced for the purpose of climate protection, the market is being driven in particular by falling prices. A central cost factor for electric cars has always been the battery. So much the better, then, that the cost of battery packs has dropped sharply in recent years. According to Statista, the average price per kilowatt-hour (kWh) in 2010 was still close to USD 1,200, but by 2019 it had shrunk by 87% from that level to stand at USD 156. According to the statistics portal, the price of battery packs is expected to fall sharply again to just USD 100 per kWh by 2023 (see chart).
The Swissquote experts reckon that the rapid spread of e-mobility offers great opportunities for investors. "Everyone wants to be a pioneer in electromobility, as the potential is immense and will continue to grow," is their optimistic assessment. The actively managed Swissquote Global eMobility Index gives investors access to companies that focus on electric vehicles and their drive technologies. To be considered for the new benchmark, a share must first meet a number of minimum trading criteria. In addition to the quantitative premises, a direct link to electric mobility is essential. Managers put the entire value-added chain under the microscope. In other words, vehicle manufacturers and battery producers are just as eligible for the index as their suppliers or specialists in charging infrastructure. As usual, the allocation process is supported by quantitative calculations, such as the optimization of portfolio mean value and variance. The index is reviewed on a quarterly basis and rebalancing can take account of new listings or news from the sector.
The starting line-up of the Swissquote Global eMobility Index features 24 companies. It goes without saying that the industry pioneer Tesla is among them. Founded in 2003, the company has secured first-mover status with its focus on electric drives. The Californians are now operating at a profit with rapid increases in sales figures. Wall Street is thrilled: the share price has more than quintupled over the year to date. Meanwhile, the 2020 interim balance sheet for the ABB share is now just back in positive territory again after the coronavirus-related slump in spring. The domestic industrial group is keen to take part in the megatrend of e-mobility, whether via the Terra rapid-charging station or plants for the production of electric vehicles. The Zurich-based company has just received an order from VW Nutzfahrzeuge for 800 corresponding high-performance industrial robots. The index also contains lithium producers and numerous automotive suppliers. These include both semiconductor manufacturers such as Infineon and drive specialists. The US group BorgWarner is active in the latter segment.
The new underlying shows a spread that is broad not only in terms of technology – the index is also geographically broadly based. The spectrum ranges from e-mobility pioneer China to Europe, which is particularly committed to climate protection, and the USA, which is set to experience a sustainability boost following the election victory of Joe Biden. The tracker certificate on the Swissquote Global eMobility Index was launched with corresponding momentum. A good two weeks after the start of trading on the SIX, the product was listed at 16% above the issue price. Although, as already mentioned, three parties are involved in this exciting investment solution, fees have been kept low, with the total expense ratio a mere 0.95% p.a. To conclude, the new investment product offers a simple, effective and also low-cost opportunity to enter the car of the future.
Management Fee: 0.95% p.a.
Index Sponsor: Swissquote Bank SA
Issuer: Leonteq Securities AG, Guernsey
Guarantor: PostFinance AG, Bern, Switzerland
We look forward to answering all of your questions about our products and how they are traded. Please don't hesitate to get in touch! Phone: 058 800 11 11, email info@leonteq.com or contact us here.
