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Is First Trust NASDAQ-100 Ex-Technology Sector ETF (QQXT) a Strong ETF Right Now?
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The First Trust NASDAQ-100 Ex-Technology Sector ETF (QQXT - Free Report) made its debut on 02/08/2007, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by First Trust Advisors, and has been able to amass over $1.1 billion, which makes it one of the average sized ETFs in the Style Box - Large Cap Growth. Before fees and expenses, QQXT seeks to match the performance of the NASDAQ-100 Ex-Tech Sector Index.
The NASDAQ-100 Ex-Tech Sector Index is an equal-weighted index based on the securities of the NASDAQ-100 Index that are not classified as technology and, as a result, is a subset of the NASDAQ-100 Index. The NASDAQ-100 Index includes 100 of the largest domestic and international non-financial companies listed on NASDAQ based on market capitalization.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.60% for this ETF, which makes it one of the more expensive products in the space.
QQXT's 12-month trailing dividend yield is 0.71%.
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.
For QQXT, it has heaviest allocation in the Healthcare sector --about 18.5% of the portfolio --while Industrials and Consumer Discretionary round out the top three.
Looking at individual holdings, Idexx Laboratories, Inc. (IDXX) accounts for about 2.23% of total assets, followed by O'reilly Automotive, Inc. (ORLY) and Warner Bros. Discovery, Inc. (WBD).
Its top 10 holdings account for approximately 20.58% of QQXT's total assets under management.
Performance and Risk
Year-to-date, the First Trust NASDAQ-100 Ex-Technology Sector ETF has added about 7.07% so far, and is up roughly 5.66% over the last 12 months (as of 10/21/2025). QQXT has traded between $84.34 $101.22 in this past 52-week period.
QQXT has a beta of 0.94 and standard deviation of 14.87% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 57 holdings, it effectively diversifies company-specific risk .
Alternatives
First Trust NASDAQ-100 Ex-Technology Sector 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 $196.79 billion in assets, Invesco QQQ has $394.78 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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Is First Trust NASDAQ-100 Ex-Technology Sector ETF (QQXT) a Strong ETF Right Now?
The First Trust NASDAQ-100 Ex-Technology Sector ETF (QQXT - Free Report) made its debut on 02/08/2007, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by First Trust Advisors, and has been able to amass over $1.1 billion, which makes it one of the average sized ETFs in the Style Box - Large Cap Growth. Before fees and expenses, QQXT seeks to match the performance of the NASDAQ-100 Ex-Tech Sector Index.
The NASDAQ-100 Ex-Tech Sector Index is an equal-weighted index based on the securities of the NASDAQ-100 Index that are not classified as technology and, as a result, is a subset of the NASDAQ-100 Index. The NASDAQ-100 Index includes 100 of the largest domestic and international non-financial companies listed on NASDAQ based on market capitalization.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.60% for this ETF, which makes it one of the more expensive products in the space.
QQXT's 12-month trailing dividend yield is 0.71%.
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.
For QQXT, it has heaviest allocation in the Healthcare sector --about 18.5% of the portfolio --while Industrials and Consumer Discretionary round out the top three.
Looking at individual holdings, Idexx Laboratories, Inc. (IDXX) accounts for about 2.23% of total assets, followed by O'reilly Automotive, Inc. (ORLY) and Warner Bros. Discovery, Inc. (WBD).
Its top 10 holdings account for approximately 20.58% of QQXT's total assets under management.
Performance and Risk
Year-to-date, the First Trust NASDAQ-100 Ex-Technology Sector ETF has added about 7.07% so far, and is up roughly 5.66% over the last 12 months (as of 10/21/2025). QQXT has traded between $84.34 $101.22 in this past 52-week period.
QQXT has a beta of 0.94 and standard deviation of 14.87% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 57 holdings, it effectively diversifies company-specific risk .
Alternatives
First Trust NASDAQ-100 Ex-Technology Sector 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 $196.79 billion in assets, Invesco QQQ has $394.78 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.