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Is Direxion NASDAQ-100 Equal Weighted Index ETF (QQQE) a Strong ETF Right Now?
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The Direxion NASDAQ-100 Equal Weighted Index ETF (QQQE - Free Report) was launched on 03/21/2012, and is a smart beta exchange traded fund designed to offer 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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Direxion. QQQE has been able to amass assets over $1.27 billion, making it one of the average sized ETFs in the Style Box - Large Cap Growth. QQQE seeks to match the performance of the NASDAQ-100 Equal Weighted Index before fees and expenses.
The NASDAQ-100 Equal Weighted Index consists of companies in the NASDAQ-100 Index but each of the securities is initially set at a weight of 1.00% of the Index. The NASDAQ-100 Index includes 100 of the largest non-financial securities listed on NASDAQ based on capitalization.
Cost & Other Expenses
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.
Operating expenses on an annual basis are 0.35% for QQQE, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.55%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 46.8% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Industrials and Consumer Discretionary round out the top three.
Looking at individual holdings, Intel Corp (INTC) accounts for about 1.3% of total assets, followed by Marvell Technology Inc (MRVL) and Monolithic Power Systems Inc (MPWR).
QQQE's top 10 holdings account for about 11.56% of its total assets under management.
Performance and Risk
So far this year, QQQE return is roughly 13.04%, and is up about 24.21% in the last one year (as of 05/22/2026). During this past 52-week period, the fund has traded between $92.73 and $115.49.
The fund has a beta of 1.08 and standard deviation of 16.95% for the trailing three-year period, which makes QQQE a medium risk choice in this particular space. With about 102 holdings, it effectively diversifies company-specific risk .
Alternatives
Direxion NASDAQ-100 Equal Weighted Index 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 Index Fund ETF Shares (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth Index Fund ETF Shares has $225.18 billion in assets, Invesco QQQ has $471.73 billion. VUG has an expense ratio of 0.03% and QQQ changes 0.18%.
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 Direxion NASDAQ-100 Equal Weighted Index ETF (QQQE) a Strong ETF Right Now?
The Direxion NASDAQ-100 Equal Weighted Index ETF (QQQE - Free Report) was launched on 03/21/2012, and is a smart beta exchange traded fund designed to offer 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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Direxion. QQQE has been able to amass assets over $1.27 billion, making it one of the average sized ETFs in the Style Box - Large Cap Growth. QQQE seeks to match the performance of the NASDAQ-100 Equal Weighted Index before fees and expenses.
The NASDAQ-100 Equal Weighted Index consists of companies in the NASDAQ-100 Index but each of the securities is initially set at a weight of 1.00% of the Index. The NASDAQ-100 Index includes 100 of the largest non-financial securities listed on NASDAQ based on capitalization.
Cost & Other Expenses
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.
Operating expenses on an annual basis are 0.35% for QQQE, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.55%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 46.8% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Industrials and Consumer Discretionary round out the top three.
Looking at individual holdings, Intel Corp (INTC) accounts for about 1.3% of total assets, followed by Marvell Technology Inc (MRVL) and Monolithic Power Systems Inc (MPWR).
QQQE's top 10 holdings account for about 11.56% of its total assets under management.
Performance and Risk
So far this year, QQQE return is roughly 13.04%, and is up about 24.21% in the last one year (as of 05/22/2026). During this past 52-week period, the fund has traded between $92.73 and $115.49.
The fund has a beta of 1.08 and standard deviation of 16.95% for the trailing three-year period, which makes QQQE a medium risk choice in this particular space. With about 102 holdings, it effectively diversifies company-specific risk .
Alternatives
Direxion NASDAQ-100 Equal Weighted Index 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 Index Fund ETF Shares (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth Index Fund ETF Shares has $225.18 billion in assets, Invesco QQQ has $471.73 billion. VUG has an expense ratio of 0.03% and QQQ changes 0.18%.
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.