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Should First Trust NASDAQ-100 Ex-Technology Sector ETF (QQXT) Be on Your Investing Radar?
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Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the First Trust NASDAQ-100 Ex-Technology Sector ETF (QQXT - Free Report) , a passively managed exchange traded fund launched on February 8, 2007.
The fund is sponsored by First Trust Advisors. It has amassed assets over $214.55 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.6%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1.2%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Healthcare sector -- about 20.4% of the portfolio. Consumer Discretionary and Industrials round out the top three.
Looking at individual holdings, Warner Bros. Discovery, Inc. (WBD) accounts for about 2.35% of total assets, followed by Intuitive Surgical, Inc. (ISRG) and Biogen Inc. (BIIB).
The top 10 holdings account for about 21.33% of total assets under management.
Performance and Risk
QQXT seeks to match the performance of the NASDAQ-100 Ex-Tech Sector Index before fees and expenses. 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.
The ETF has added about 8.57% so far this year and it's up approximately 7.72% in the last one year (as of 12/24/2025). In the past 52-week period, it has traded between $84.34 and $101.22.
The ETF has a beta of 0.90 and standard deviation of 14.04% for the trailing three-year period, making it 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 carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, QQXT is a good option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $204.32 billion in assets, Invesco QQQ has $410.70 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.2%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
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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Should First Trust NASDAQ-100 Ex-Technology Sector ETF (QQXT) Be on Your Investing Radar?
Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the First Trust NASDAQ-100 Ex-Technology Sector ETF (QQXT - Free Report) , a passively managed exchange traded fund launched on February 8, 2007.
The fund is sponsored by First Trust Advisors. It has amassed assets over $214.55 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.6%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1.2%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Healthcare sector -- about 20.4% of the portfolio. Consumer Discretionary and Industrials round out the top three.
Looking at individual holdings, Warner Bros. Discovery, Inc. (WBD) accounts for about 2.35% of total assets, followed by Intuitive Surgical, Inc. (ISRG) and Biogen Inc. (BIIB).
The top 10 holdings account for about 21.33% of total assets under management.
Performance and Risk
QQXT seeks to match the performance of the NASDAQ-100 Ex-Tech Sector Index before fees and expenses. 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.
The ETF has added about 8.57% so far this year and it's up approximately 7.72% in the last one year (as of 12/24/2025). In the past 52-week period, it has traded between $84.34 and $101.22.
The ETF has a beta of 0.90 and standard deviation of 14.04% for the trailing three-year period, making it 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 carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, QQXT is a good option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $204.32 billion in assets, Invesco QQQ has $410.70 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.2%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
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.