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Is First Trust NASDAQ-100 Equal Weighted ETF (QQEW) a Strong ETF Right Now?

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Designed to provide broad exposure to the Style Box - Large Cap Growth category of the market, the First Trust NASDAQ-100 Equal Weighted ETF (QQEW - Free Report) is a smart beta exchange traded fund launched on 04/19/2006.

What Are Smart Beta ETFs?

Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.

A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.

On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.

Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund Sponsor & Index

Managed by First Trust Advisors, QQEW has amassed assets over $1.86 billion, making it one of the larger ETFs in the Style Box - Large Cap Growth. QQEW seeks to match the performance of the NASDAQ-100 Equal Weighted Index before fees and expenses.

The NASDAQ-100 Equal Weighted Index is the equal-weighted version of the NASDAQ-100 Index which includes 100 of the largest non-financial securities listed on NASDAQ based on market capitalization.

Cost & Other Expenses

For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.

Annual operating expenses for this ETF are 0.55%, making it on par with most peer products in the space.

QQEW's 12-month trailing dividend yield is 0.41%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

QQEW's heaviest allocation is in the Information Technology sector, which is about 38.8% of the portfolio. Its Consumer Discretionary and Industrials round out the top three.

When you look at individual holdings, Applovin Corp. (class A) (APP) accounts for about 1.36% of the fund's total assets, followed by Shopify Inc. (class A) (SHOP) and Palantir Technologies Inc. (class A) (PLTR).

The top 10 holdings account for about 12.57% of total assets under management.

Performance and Risk

The ETF return is roughly 9.13% so far this year and is up roughly 13.52% in the last one year (as of 09/08/2025). In the past 52-week period, it has traded between $106.81 and $139.57

QQEW has a beta of 1.07 and standard deviation of 19.48% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 102 holdings, it effectively diversifies company-specific risk .

Alternatives

First Trust NASDAQ-100 Equal Weighted ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.

Vanguard Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth ETF has $186.11 billion in assets, Invesco QQQ has $366.38 billion. VUG has an expense ratio of 0.04% and QQQ changes 0.20%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Growth

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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