Wisdomtree ETF's

[Hobo]

What are peoples opinions on EFT's, and in particular the following two;

- Wisdomtree NASDAQ 100 3x D1 Leveraged ETP
- Wisdomtree Palladium 2x D1 Leveraged ETP

[FredClogs]

3x leverage on anything can be tough to bear, that NASDQ ETF went from ~$2500 middle of Feb to about $500 at the bottom 4 weeks later... Have you got the stomach for that?

[Hobo]

FredClogs said:

3x leverage on anything can be tough to bear, that NASDQ ETF went from ~$2500 middle of Feb to about $500 at the bottom 4 weeks later... Have you got the stomach for that?

Significant amounts of companies lost equal amounts at the same time, and have subsequently started to recover, so the fundamental drop does not really concern me.

I'm going to buy into both of these later today I suspect in the hope/belief they continue to recover back towards previous levels.

[jimmydash]

I've been in and out of the Nas100 3x over the last 16 months, made a lot of money in 2019 and over the last month. I came out a bit in January as it looked a bit toppy and sold all of it in Late Feb. My dealing costs are only £9.95 plus spread so I'm happy to trade it frequently.

I lost a boat load on the FTSE 250 2x which I bought following Brexit as I thought those firms would do well in an independent UK. I nearly bought the FTSE 100 2x when it fell to around 5300 in April but the loss on the FTSE250 frightnened me away from the 100.

I have more faith in the Nas100 and wil buy on the next dip - if there is one - ha ha.

[FredClogs]

Hobo said:

FredClogs said:

3x leverage on anything can be tough to bear, that NASDQ ETF went from ~$2500 middle of Feb to about $500 at the bottom 4 weeks later... Have you got the stomach for that?

Significant amounts of companies lost equal amounts at the same time, and have subsequently started to recover, so the fundamental drop does not really concern me.

I'm going to buy into both of these later today I suspect in the hope/belief they continue to recover back towards previous levels.

Yeah fair enough, my point really was more about the leverage and the risk of amplifying losses when they occur as much as amplifying gains when they occur. The market is very volatile so 2% or 3% daily movements suddenly become 6% to 9% daily movements and if you're watching them closely I imagine it'll be hard to stick to your plan... Maybe, maybe not. I know I find it hard.