Overview: The WisdomTree NASDAQ 100 3x Daily Leveraged ETF, identified by the symbol QQQ3, is designed to provide amplified exposure to the performance of the NASDAQ 100 index. This ETF aims to triple the daily returns of this index, which includes the 100 largest non-financial companies listed on the NASDAQ. This means that the movements of the index are amplified, both upward and downward, on a daily basis.
Benefits: One of the main advantages of this ETF is its ability to provide exposure to leading technology companies, such as those in the information technology, consumer discretionary, and healthcare sectors. This can be particularly appealing to investors looking to capitalize on the rapid growth of these sectors. Additionally, the leverage can potentially increase gains during bullish markets, which may attract investors seeking high short-term returns.
Risks: However, it is essential to note that the use of leverage carries significant risks. Fluctuations in the index can lead to amplified losses, making this ETF more volatile than traditional investments. Investors should be aware that this ETF is primarily suited for a short-term trading strategy, as leverage can lead to performance divergences over extended periods.
Investor Profile: This ETF is mainly suitable for experienced and active investors who have a high risk tolerance and are looking to take advantage of short-term market movements. It may also appeal to those looking to diversify their portfolio with high-growth potential assets, while being aware of the risks associated with leverage.
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 | |
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| 3 years | |||
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