The WisdomTree NASDAQ 100 3x Daily Leveraged (LQQ3) is a leveraged exchange-traded product issued by WisdomTree Multi Asset Issuer PLC and domiciled in Ireland. LQQ3 is the ticker for its GBx trading line on the London Stock Exchange.

The product seeks to provide three times the daily performance of the Nasdaq-100 Net Total Return Index, before the full impact of fees and costs associated with maintaining the leveraged position.

LQQ3 follows a systematic daily leveraged strategy and uses fully collateralized swaps to obtain its exposure. Leverage is reset daily to maintain a 3x factor, meaning its performance objective applies to a one-day period.

As a result, the product does not seek to deliver three times the Nasdaq-100's cumulative return over holding periods longer than one day. Return compounding, volatility, costs, and daily rebalancing can cause cumulative performance to differ significantly from that multiple.

Composition / Exposure Profile

LQQ3's economic exposure reflects the universe represented by the Nasdaq-100, covering sectors such as:

• Information technology.

• Consumer discretionary.

• Communication services.

• Health care.

• Industrials.

• Consumer staples.

• Utilities.

Although many Nasdaq-100 companies have global operations and revenue, eligibility for the index is tied to a Nasdaq listing and the other requirements established by its methodology.

The defining characteristic of LQQ3 is its 3x daily leveraged exposure. In simplified terms, a 1% increase in the index over a single day would generally be expected to result in an approximately 3% increase in the ETP before fees and costs. A 1% decline would generally translate into a loss of approximately 3%.

Structure and Costs

LQQ3 has the U.S. dollar as its base currency. On the London Stock Exchange, the product trades in GBx under LQQ3 and in USD under QQQ3. Other trading lines include 3QQQ in EUR on Xetra and QQQ3 in EUR on exchanges including Borsa Italiana and Euronext Paris.

The product is structured as a fully collateralized ETP and uses swaps to obtain leveraged exposure. It is issued by Ireland-domiciled WisdomTree Multi Asset Issuer PLC. The ETP is UCITS eligible but is not itself a UCITS fund.

LQQ3 has an annual management fee of 0.75%. The strategy also incurs costs associated with swaps and maintaining its leveraged exposure, which affect performance.

The product does not follow a traditional dividend distribution policy like an equity ETF. Its reference index incorporates net dividends from Nasdaq-100 constituents, while the ETP's performance reflects the leveraged index return after applicable costs.

History and Evolution of the ETP

The WisdomTree NASDAQ 100 3x Daily Leveraged was launched in 2012, while the LQQ3 trading line on the London Stock Exchange was introduced later.

Since its launch, the product has maintained a strategy designed to provide 3x daily leveraged exposure to the Nasdaq-100 through a fully collateralized swap-based structure.

Throughout its history, its performance has reflected amplified movements in the Nasdaq-100 alongside the effects of volatility, daily rebalancing, and leverage-related costs.

Additional Information

WisdomTree NASDAQ 100 3x Daily Leveraged (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $391.02 million.

Over the past 12 months, WisdomTree NASDAQ 100 3x Daily Leveraged recorded a return of 49.92%, with its price trading between $5.99 and $505.74 during the same period.

The ETF is traded under the ticker LQQ3.