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High Tech Stock Picking wikifolio


The Digital Leaders Fund

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Do you have enough time and desire to deal intensively with the financial market and the individual securities? Then it can not only be very lucrative, but also a lot of fun to manage your own portfolio of individual stocks.


However, if you do not (yet) have the confidence to do this, or if you simply want to invest as little time as possible, I have two offers to support you with investing: the High-Tech Stock Picking wikifolio and The Digital Leaders Fund.


With the information on this page I want to convey the really fundamental differences between the two concepts.


I would like to send one in advanceDisclaimer: I want and am allowed here and also via e-mail, telephone or other channels no investment advice provide for you. The information published on my blog should not be used primarily and as a basis for an investment decision, since, for example, the consideration of your individual investor profile is completely ignored. However, this is an indispensable prerequisite for professional and well-founded investment advice. Please consider this when making your investment decision and do not rely solely on the information on this website. If necessary, consult professional investment advisors, your bank or other specialist literature.

The high-tech stock picking wikifolio

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On the wikifolio platform there is an unmanageable variety of over 8,000 investable wikifolios. The following comparison should only be about my High Tech Stock Picking wikifolio go, which I have managed since mid-2016.


I reported on the advantages and disadvantages of the wikifolio platform several times in my blog:

The Digital Leaders Fund

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If you've been following my blog for a while, then you know that I'm generally quite critical of classic investment funds.


One of my most read posts even deals with the
7 reasons why private investors invest more successfully than fund managers


Nevertheless, I have Baki Irmak, who, unlike me, comes from the asset management world,  persuaded to become a fund advisor to The Digital Leaders Fund, which he manages. Since March 2018 the The Digital Leaders Fund at the start.


At that time I justified which 7 Success Factors of The Digital Leaders Funds  it  should enable us to achieve above-average results for our investors even in the structure of an equity fund. 

High-Tech Stock Picking wikifolio versus The Digital Leaders Fund

In the following I try to compare the two fundamentally different investment products:

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form of investment

The High-Tech Stock Picking wikifolio is a certificate issued by the securities trading bank Lang+Schwarz, which has a collateral solution has been secured against default by the issuer (issuer risk).


The dividends are usually credited to the wikifolio 1:1. There are exceptions for US stocks, but in practice these hardly play a role for technology stocks.


With The Digital Leaders Fund, on the other hand, you acquire direct ownership of the fund’s special assets, which hold the shares in a custody account at Sparkasse Köln.


All dividends are credited directly to the fund. There is basically no additional issuer risk here that one would even have to discuss. 


Advantage: fund 

Industry focus and diversification

The High-Tech Stock Picking wikifolio  is a purebred technology portfolio and should contain about 15-20 technology stocks. I manage the portfolio myself and make decisions on individual transactions on my own. Whereby I define the term "technology" quite broadly, as is common practice. In addition to the pure IT providers (software, hardware, IT services), platform companies from various sectors that build their business on the latest technology are also traded in this wikifolio (e.g. Facebook, The Trade Desk).


The Digital Leaders Fund is cross-industry and much broader (approx. 30-40 stocks). The fund contains three categories of companies, all of which are among the winners of digitization:


1. "Digital Transformation Leaders" -  These are well-established companies with strong substance that quickly reach a very high level of digital maturity and are in the process of setting themselves apart from the competition.


2. "Digital Business Leaders" - These are companies from the digital age that are decisively changing their industry with completely new digital business models and platforms.


3.  "Digital Enablers" -  These are IT companies that make digital change possible with their products and services.


I myself advise the fund manager Baki Irmak on his portfolio management, primarily in the two categories Digital Business Leaders and Digital Enablers. Because that's where I have my domain expertise.


Advantage: A matter of taste - you should ask yourself whether you are looking for a purebred investment in technology or want to invest more broadly in the winners of the digital transformation.

Management Fees

The basic fee for managing the investment funds at wikifolio is 0.95% p.a., this "certificate fee" is processed daily in the reported wikifolio rates.


The basic fee at The Digital Leaders Fund is higher at 1.5% p.a. These costs are already included in the daily fund unit prices and, in addition to the pure administration fee, also include costs for the custodian bank, the capital management company (universal investment) and the liability umbrella, which takes care of compliance with the regulatory framework. 


Advantage: wikifolio  

profit sharing

In addition, as is customary in asset management, a performance fee (= profit sharing) is always due for both products when the portfolio has reached a new high (high watermark method). These fees are already included in the respective courses.

The performance fee is 18% for my wikifolio and 15% for The Digital Leaders Fund and 15% of the outperformance compared to the benchmark.


The main difference in fees is the way the performance fee is calculated. Because at wikifolio, this is calculated on the basis of the highest level in a calendar year.


This rule is of course less investor-friendly than The Digital Leaders Fund, where the already lower profit-sharing is only due on the basis of an all-time high watermark on the outperformance compared to the MSCI World stock index.


Overall, the fund is more expensive with the basic fee, but calculates a lower profit-sharing fee.


Advantage: fund    

hurdles to start

Getting started with investing with wikifolio is very easy. You open a securities account at any bank or online broker - only if you don't have one yet - and can then order a wikifolio via its securities identification number ISIN just as easily as any other security.


It is just as easy to start with The Digital Leaders Fund, which you can buy from any bank or online broker via its ISIN.


However, many banks still charge a front-end load of up to 3% for the fund.Here you will find some tips how you can possibly avoid this distribution fee.


With the wikifolio, as with shares or other certificates, there is a spread (difference between the buying and selling price) to consider. This usually fluctuates between 0.5% and 2% and is lowest when the US stock exchanges are open in the late afternoon and evening.


Advantage: wikifolio


A big advantage of the wikifolio is its flexibility. I can act freely within the investment strategy I have imposed myself without additional regulatory hurdles.


For the management of the fund's special assets, on the other hand, there are some important additional framework conditions with which the legislator wants to limit the risk.


The so-called 5/10/40 rule is one of the most well-known limitations. It states that no more than 10 percent of a fund's net assets may be invested in a single stock and that all positions over 5 percent may not add up to more than 40 percent of the total portfolio.  


Advantage: wikifolio


The wikifolio platform offers the greatest possible transparency imaginable. Not only the current portfolio behind each wikifolio is publicly visible to every registered user of the platform on the Internet, but also historical prices and all historical transactions are comprehensible for everyone.  


The Digital Leaders Fund aims to be the most transparent fund in Germany. On the website we offer subscribers to our free newsletter an insight into the complete portfolio. 


In addition, subscribers to the DLF newsletter receive weekly news from the fund and our portfolio in their email inbox. Subscribe here now! 


Advantage: wikifolio


So I have now - just counted again - been able to identify 4 advantages for the wikifolio and for the fund.


Depending on your individual situation, it may make sense to invest with the High Tech Stock Picking wikifolio try it out or iInvest in The Digital Leaders Fund.


Or you decide to go the silver bullet, namely to invest a little more time in the long term to independently manage your own portfolio of individual shares. You can on this blog where The Digital Leaders Funds website and on the sides of find some help from me,  to build up the necessary know-how and hopefully even to discover the fun of the stock market.


Because active investment should give you pleasure - if that's just a necessary evil for you, then you should rather let others invest for you - or actually be satisfied with the average return of a passive index investment (ETF).


But the most important thing is that you invest at all...


... because that puts you better than 80% of all Germans when it comes to investing, who still tend to leave their money in savings accounts and current accounts. Sad but true. 

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