The most interesting product on these lists is the Wisdom Tree Nasdaq 100 3x Daily Short product. This is one of the most hairy-@rsed products a retail investor could get. It is the investment equivalent of The Rock downing tequilas.
Here’s what the company says it does: “WisdomTree NASDAQ 100 3x Daily Short is a fully collateralised, UCITS eligible ETP designed to provide investors with a leveraged short exposure to the NASDAQ 100.“
Got that? In real English, you are taking out a bet, and betting that a collection of 100 leading US tech companies will go down in value. And if you bet £100, for every day that you have this bet, for every 1% that the collection of shares falls in value, the value of your stake goes up by 3%. So your stake goes to £103, if the Nasdaq falls by 1%.
Oooh, lovely! But here’s the rub. For every 1% it goes up, the value of your stake goes down by 3%. Oh man.
