The Leverage Shares 5x Long Nasdaq 100 ETP Securities (QQQ5) is an exchange-traded product issued by Leverage Shares plc. QQQ5 is the ticker for its U.S. dollar trading line on the London Stock Exchange and provides leveraged exposure to the Nasdaq-100.

QQQ5 seeks to provide approximately five times the daily performance of the Nasdaq-100 before the impact of fees and costs associated with maintaining leverage. The strategy uses exposure represented by the Invesco QQQ Trust, which tracks the Nasdaq-100 Index, as its reference.

QQQ5 is a leveraged ETP structured as a debt security rather than a traditional UCITS ETF. The strategy is physically backed and uses margin financing to increase exposure to the underlying assets, targeting a 5x leverage factor.

The Nasdaq-100 comprises 100 of the largest non-financial companies listed on the Nasdaq and uses a modified market-capitalization-weighted methodology. It includes companies across several sectors, although technology and other growth-oriented industries represent significant portions of the index.

Composition / Exposure Profile

QQQ5's economic exposure reflects the companies represented in the Nasdaq-100, covering sectors such as:

• Information technology.

• Consumer discretionary.

• Communication services.

• Health care.

• Industrials.

• Consumer staples.

• Utilities.

Although many Nasdaq-100 companies generate revenue and operate internationally, eligibility for the index is tied to a Nasdaq listing and the other requirements established by the benchmark methodology.

The defining characteristic of QQQ5 is its 5x daily leverage. A 1% increase in its reference over a single day would generally be expected to result in an approximately 5% increase in the ETP before fees and costs. Likewise, a 1% decline would generally translate into a loss of approximately 5%.

Structure and Costs

QQQ5 has the U.S. dollar as its base currency and trades in USD on the London Stock Exchange under QQQ5. The same product also has LSE trading lines in GBP under 5QQQ and EUR under 5QQE, along with listings on other European exchanges.

The product is structured as an ETP/debt security issued by Leverage Shares plc and is physically backed by assets used to implement its strategy. Margin financing is used to maintain the leveraged exposure.

QQQ5 has an annual management fee of 0.75%. In addition to this fee, the strategy incurs financing costs associated with maintaining leverage, which also affect performance.

Because leverage is reset daily, costs, volatility, and return compounding can have a significant impact on performance when the product is held for longer than one day.

History and Evolution of the ETP

The Leverage Shares 5x Long Nasdaq 100 ETP Securities (QQQ5) was launched in 2021 to provide leveraged daily exposure to the Nasdaq-100.

Since its launch, the ETP has maintained a systematic strategy targeting 5x daily leverage. Its performance is therefore influenced both by movements in the companies represented in the Nasdaq-100 and by volatility, financing costs, and the effects of daily rebalancing.

Because of these characteristics, QQQ5's performance over holding periods longer than one day can differ significantly from five times the Nasdaq-100's cumulative return over the same period.

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 49.50%, with its price trading between $1.01 and $3.69 during the same period.

The ETF is traded under the ticker QQQ5.