Nasdaq vs Nasdaq 2x vs Nasdaq 3x
A double or triple leveraged ETF does not multiply the performance of the period: it multiplies the move of each single day. Over a long and choppy period the gap between those two ideas becomes very large — and it works against the leverage.
Over the period both series share, WisdomTree NASDAQ 100 3x Daily Leveraged comes out ahead at +40.7% a year.
| Asset | Total return | Annualised | Volatility | Largest drawdown |
|---|---|---|---|---|
| Nasdaq 100 | +877.9% | +20.0% a year | 21.2% | −32.4% (January 2023) |
| Amundi Nasdaq-100 Daily (2x) Leveraged UCITS ETF Acc | ×36.0 | +33.3% a year | 37.0% | −57.0% (January 2023) |
| WisdomTree NASDAQ 100 3x Daily Leveraged | ×71.2 | +40.7% a year | 57.3% | −77.0% (January 2023) |
Figures calculated on 26/10/2026 from monthly closing prices. Past performance is no guide to future performance.
Daily leverage, not leverage over the period
These products undertake to reproduce two or three times the daily move of the index, and reset their exposure every evening. Over one day the promise holds. Over two days or more, the outcome depends on the path taken.
One example makes it clear: an index that loses 10% then gains 10% ends at 99% of its value. With triple leverage the fall is 30% and the gain 30%, leaving 91%. The leveraged product’s loss is more than eight times the index’s, even though the index recovered nearly everything.
What these products cost on top
The effect described above — volatility decay — is not a manufacturing defect but the mathematical consequence of resetting daily. It grows with market turbulence, and does not depend on direction.
Added to that are the cost of the borrowing that funds the leverage and management fees well above those of a plain ETF. The long-run matchup shows what the accumulation of these effects produces, especially through the large drawdowns, where a triple-leveraged product can take years to regain its level.
Frequently asked questions
Does triple leverage triple the return over ten years?
No, and it can turn it negative while the index has risen. Only the daily move is multiplied by three.
Can these products go to zero?
A fall of more than a third in the index in a single session would wipe out almost all of a triple-leveraged product. Issuers build in intraday exposure cuts to avoid that.