Overview:
WisdomTree WTI Crude Oil 3x Daily Leveraged is a fund that seeks to replicate, on a daily basis, the return multiplied by three of the NASDAQ Commodity 2nd Front Crude Oil ER benchmark index, supplemented by interest generated on collateral. It provides exposure to WTI crude oil performance through a leveraged strategy and relies on derivative contracts and collateral to achieve this objective. The policy is accumulation (reinvestment).
Benefits:
Offers amplified exposure to daily movements in the oil market, useful for tactical positioning. Collateralized structure with interest generation that complements replication. Replicates a futures index, providing exposure to segments of the contract strip (second front), which can diversify sensitivity compared with the front-month contract.
Risks:
High volatility due to the asset class and leverage; risk of amplified losses. Daily rebalancing and compounding effects may lead to divergence relative to performance over longer horizons (path dependency). Exposure to roll risk (contango/backwardation), counterparty/collateral risk and liquidity risk.
Investor profile:
Suitable for experienced investors seeking short-term exposure and able to manage high risk. Not appropriate for buy-and-hold investors, for conservative liability management, or for long exposure without active monitoring.
Total Annual Returns, Including Dividends
The drawdown measures the decline in price from its historical high. It helps assess the fund's downside risk. The calculation includes dividends.
| Volatility | Max drawdown | Sharpe ratio | |
|---|---|---|---|
| 1 year | |||
| 3 years | |||
| 10 years | |||
| Max |