Tracking the Nasdaq 100 With An Equal Weighted Index Fund

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker, financial journalist, and money manager.

For investors looking for equal-weighted exposure to the Nasdaq 100, the First Trust Nasdaq-100 Equal Weighted Index Fund (NASDAQ: QQEW) may be of interest.

Advertisement.

The exchange-traded fund (ETF) is a tech-focused index that is comprised of 100 of the largest domestic and international non-financial companies within the Nasdaq Stock Market, based on their market capitalization. The fund is rebalanced quarterly and provides equal allocation to all of the companies within its portfolio with no bias toward their sector or market-cap weighting.

QQEW is a fund that is intended to approximate the performance of the Nasdaq 100 for investors who are interested in a purer form of exposure to the non-financial space with less concentration. Though the fund has less liquidity than some of its peers, it may be appealing to longer-term investors since its equal-weighting methodology mitigates some of the impact from the Nasdaq 100’s tech-heavy composition.

QQEW has a 0.59% expense ratio and a modest 0.32% dividend yield. The fund has $1.26 billion in assets under management and $1.24 billion in net assets. Year to date, this ETF has shown solid performance, with a mid-sized dip in September 2020 and another one two months later in November.

Advertisement.

However, since that November dip, the fund has had a solid run. Today, the fund opened at $107.19, which is at the high end of its 52-week range.

Tech stocks compose 37.55% of the fund’s portfolio, with health care, 15.84%, and consumer cyclical, 13.87%, holdings not far behind. The fund’s top five individual holdings include Applied Materials Inc. (AMAT), 1.13%; KLA Corp. (KLAC), 1.11%; ASML Holding NV ADR (ASML), 1.10%; Cadence Design Systems Inc. (CDNS), 1.07% and Costco Wholesale Corp. (COST), 1.07%.

Exclusive  Invesco China Technology (CQQQ): A Shining Star in the Constellation of ETFs

In summation, the First Trust Nasdaq-100 Equal Weighted Index Fund (NASDAQ: QQEW) tracks 100 of the largest domestic and international non-financial companies listed on the Nasdaq Stock Market. Unlike other funds, QQEW has no bias toward market sector or weighting when adding to its portfolio. As it is equally weighted and rebalanced quarterly, it may be a good way to gain broad-based exposure to the Nasdaq 100, as well as a potentially strong long-term investment.

Advertisement.

However, I urge interested investors to conduct their own due diligence to decide whether this fund fits a particular individual’s personal portfolio goals.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk

share on:

Like This Article?
Now Get Jim's FREE Special Report:
The Top 11 Dividend ETFs to
Buy Right Now

Get up to 5X the yields of traditional income plays.

Get Access to the Report, 100% FREE


img
share on:

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader
LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader
LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener
LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program
LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader
LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor
LEARN MORE HERE

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle
LEARN MORE HERE

DayTradeSPY

DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops
LEARN MORE HERE