[Request] Wisdomtree Leverage ETFs - 3LUS and LQQ3

General
1

I would like to add a little bit of fuel to my portfolio by adding these leveraged ETFs.

WisdomTree S&P 500 3x Daily Leveraged
ISIN: IE00B7Y34M31 Ticker: 3LUS

WisdomTree NASDAQ 100® 3x Daily Leveraged
ISIN: IE00BLRPRL42 Ticker: LQQ3

Can this be added to the platform?

2

Hello Siddiqui

Thank you for getting in touch. You will be pleased to know I have forwarded your ETF requests to our investment committee, who will look into adding it to our DIY portfolio. We will let you know if and when it’s added to the list.

If there is anything else you would like to see on the platform please do not hesitate to get back to me.

1 Like
3

Hi @siddiqui

Just to follow up on Laura’s comment. We are not looking to add any leveraged funds to the platform (at least not in the short term). There are a couple of reasons for this, principally the sorts of risks associated with leveraged funds and our view of their suitability for long term investing.

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4

Hi, Does InvestEngine have any updated thoughts on leveraged ETFs?

5

Hello and thanks for your question.

We don’t have any specific updates on this matter.

We are not looking to add leveraged ETFs now (we may consider adding in the future) as there are several issues we can see:

  1. Their returns are more pronounced that their underlying meaning rebalance will need to be done more often in order to keep the target allocation.

  2. Most of these ETFs are actually rebalanced on the daily, meaning on the day if the Nasdaq is up 10% the ETF is up 20% or so. However on down days because there are rebalanced daily it will take a higher daily move to be above water.

You can find out for more details here - Dissecting Leveraged ETF Returns: Explanation, Components, and Examples