The Leverage Shares 5x Long Nasdaq 100 ETP Securities (5QQQ) is a leveraged exchange-traded product issued by Leverage Shares plc and traded on European exchanges.

5QQQ is a leveraged ETP designed to amplify the daily movements of the Nasdaq-100. Its exposure is reset daily to target 5x the index's daily performance, meaning returns over periods longer than one day can differ significantly from five times the Nasdaq-100's cumulative return.

The strategy may use assets providing exposure to the index as well as futures contracts highly correlated with the Nasdaq-100 to achieve its intended leverage. As a result, the current strategy should not be described simply as physical replication without derivatives.

The Nasdaq-100 Index includes 100 of the largest non-financial companies listed on Nasdaq that meet the benchmark's eligibility requirements. It uses a modified market-capitalization-weighted methodology, with rules designed to limit excessive concentration in individual constituents.

Composition / Exposure Profile

5QQQ's economic exposure is linked to companies included in the Nasdaq-100 across sectors such as:

• Information technology.

• Communication services.

• Consumer discretionary.

• Health care.

• Industrials.

• Consumer staples.

• Utilities.

• Energy.

Technology represents a significant portion of the benchmark, providing exposure to areas such as software, semiconductors, hardware, digital infrastructure, and cloud computing.

Because the product targets 5x daily leverage, its economic exposure is substantially greater than the capital invested. Both gains and losses can therefore be amplified relative to daily movements in the Nasdaq-100.

Structure and Costs

5QQQ is structured as a collateralized exchange-traded debt security, rather than a traditional UCITS ETF. Leverage Shares plc is the issuer of the securities, which are traded on the secondary market across European exchanges.

In addition to its management fee, the product's performance is affected by costs associated with maintaining leveraged exposure, including financing and transaction costs. These expenses can become particularly relevant when leveraged products are held for longer periods.

The product is not designed primarily to generate or periodically distribute income. Its main objective is to provide leveraged exposure to the daily performance of the Nasdaq-100.

History and Evolution of the ETP

The Leverage Shares 5x Long Nasdaq 100 ETP Securities (5QQQ) was launched in 2021 as a product designed to provide five-times leveraged exposure to the daily performance of a strategy linked to the Nasdaq-100.

The strategy originally used the Invesco QQQ Trust as its reference asset and margin borrowing to increase exposure. In 2024, Leverage Shares modified the investment strategy to provide exposure to the Nasdaq-100 Index itself, including the use of futures contracts highly correlated with the benchmark.

Because leverage is reset daily, 5QQQ's performance over periods longer than one day can differ substantially from five times the Nasdaq-100's cumulative return. 

Additional Information

Leverage Shares 5x Long Nasdaq 100 ETP Securities (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $35.26 million.

Over the past 12 months, Leverage Shares 5x Long Nasdaq 100 ETP Securities recorded a return of 52.26%, with its price trading between $0.04 and $3.69 during the same period.

The ETF is traded under the ticker 5QQQ.