Skip to Content Julius Bär

Tracker Certificate on the US Laggards Basket

  • Stocks that have underperformed in one year (‘laggards’) tend to outperform in the subsequent year.
  • Professional investors tend to sell low performing stocks towards the end of the calendar year to either save taxes and/or avoid having to report holding losing positions – a common practice called ‘window dressing’. Often, these ‘sold-down’ stocks go on to significantly outperform the broader market in the following year.
  • Additional value may be created by focusing on laggards where the technical picture implies that the correction is over and that their prices are likely to rise again.
  • Investors can gain exposure to this strategy in a single trade via the ‘JB Tracker Certificate on the US Laggards Basket 2019’. The basket is made up of 20 larger cap US equities from the S&P 500 index and is diversified across industries.
  • This product is issued by Bank Julius Baer & Co. Ltd., Zurich (Rating: Moody’s A2). Please note that the tracker certificate is not actively managed and that investors are exposed to the credit risk of the issuer. Julius Baer provides a secondary market, but investors should be aware of the bid/ask spread risk.
  • The final redemption date is 11 February 2020. For further information please refer to the Market Opportunity linked below or contact your Julius Baer representative.
Back to top