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Is First Trust NASDAQ-100-Technology Sector ETF (QTEC) a Strong ETF Right Now?
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The First Trust NASDAQ-100-Technology Sector ETF (QTEC - Free Report) made its debut on 04/19/2006, and is a smart beta exchange traded fund that provides broad exposure to the Technology ETFs 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.
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.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $3.95 billion, this makes it one of the larger ETFs in the Technology ETFs. QTEC is managed by First Trust Advisors. QTEC seeks to match the performance of the NASDAQ-100 Technology Sector Index before fees and expenses.
The NASDAQ-100 Technology Sector Index is an equal-weighted index based on the securities of the NASDAQ-100 Index that are classified as technology.
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.
Operating expenses on an annual basis are 0.55% for QTEC, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.01%.
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.
QTEC's heaviest allocation is in the Information Technology sector, which is about 90.6% of the portfolio.
Taking into account individual holdings, Marvell Technology, Inc. (MRVL) accounts for about 2.8% of the fund's total assets, followed by Intel Corporation (INTC) and Seagate Technology Holdings Plc (STX).
QTEC's top 10 holdings account for about 25.1% of its total assets under management.
Performance and Risk
The ETF has gained about 41.67% so far this year and was up about 54.08% in the last one year (as of 07/02/2026). In the past 52-week period, it has traded between $207.03 and $335.74
The fund has a beta of 1.42 and standard deviation of 26.51% for the trailing three-year period, which makes QTEC a high risk choice in this particular space. With about 46 holdings, it has more concentrated exposure than peers .
Alternatives
First Trust NASDAQ-100-Technology Sector ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
State Street Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology Index Fund ETF Shares (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. State Street Technology Select Sector SPDR ETF has $121.05 billion in assets, Vanguard Information Technology Index Fund ETF Shares has $143.05 billion. XLK has an expense ratio of 0.08% and VGT changes 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs
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-Technology Sector ETF (QTEC) a Strong ETF Right Now?
The First Trust NASDAQ-100-Technology Sector ETF (QTEC - Free Report) made its debut on 04/19/2006, and is a smart beta exchange traded fund that provides broad exposure to the Technology ETFs 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.
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.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $3.95 billion, this makes it one of the larger ETFs in the Technology ETFs. QTEC is managed by First Trust Advisors. QTEC seeks to match the performance of the NASDAQ-100 Technology Sector Index before fees and expenses.
The NASDAQ-100 Technology Sector Index is an equal-weighted index based on the securities of the NASDAQ-100 Index that are classified as technology.
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.
Operating expenses on an annual basis are 0.55% for QTEC, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.01%.
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.
QTEC's heaviest allocation is in the Information Technology sector, which is about 90.6% of the portfolio.
Taking into account individual holdings, Marvell Technology, Inc. (MRVL) accounts for about 2.8% of the fund's total assets, followed by Intel Corporation (INTC) and Seagate Technology Holdings Plc (STX).
QTEC's top 10 holdings account for about 25.1% of its total assets under management.
Performance and Risk
The ETF has gained about 41.67% so far this year and was up about 54.08% in the last one year (as of 07/02/2026). In the past 52-week period, it has traded between $207.03 and $335.74
The fund has a beta of 1.42 and standard deviation of 26.51% for the trailing three-year period, which makes QTEC a high risk choice in this particular space. With about 46 holdings, it has more concentrated exposure than peers .
Alternatives
First Trust NASDAQ-100-Technology Sector ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
State Street Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology Index Fund ETF Shares (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. State Street Technology Select Sector SPDR ETF has $121.05 billion in assets, Vanguard Information Technology Index Fund ETF Shares has $143.05 billion. XLK has an expense ratio of 0.08% and VGT changes 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs
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.