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Is First Trust NASDAQ-100 Select Equal Weight ETF (QQEW) a Strong ETF Right Now?
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Making its debut on 04/19/2006, smart beta exchange traded fund First Trust NASDAQ-100 Select Equal Weight ETF (QQEW - Free Report) provides investors broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
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.
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.
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
QQEW is managed by First Trust Advisors, and this fund has amassed over $1.91 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Growth. This particular fund seeks to match the performance of the NASDAQ-100 Equal Weighted Index before fees and expenses.
The Nasdaq-100 Select Equal Weight Index is designed to track the performance of the 50 companies from the Nasdaq-100 Index with the highest combined Blended Quality and Growth scores.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.55% for this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.19%.
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.
For QQEW, it has heaviest allocation in the Information Technology sector --about 54.7% of the portfolio --while Healthcare and Consumer Discretionary round out the top three.
When you look at individual holdings, Airbnb, Inc. (class A) (ABNB) accounts for about 2.71% of the fund's total assets, followed by Regeneron Pharmaceuticals, Inc. (REGN) and Workday, Inc. (class A) (WDAY).
Its top 10 holdings account for approximately 25.48% of QQEW's total assets under management.
Performance and Risk
The ETF has added roughly 16.06% so far this year and it's up approximately 17.43% in the last one year (as of 09/23/2026). In the past 52-week period, it has traded between $123.05 and $167.03
QQEW has a beta of 1.08 and standard deviation of 18.33% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk .
Alternatives
First Trust NASDAQ-100 Select Equal Weight ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard Morningstar Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Morningstar Growth ETF has $234.96 billion in assets, Invesco QQQ has $501.69 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 First Trust NASDAQ-100 Select Equal Weight ETF (QQEW) a Strong ETF Right Now?
Making its debut on 04/19/2006, smart beta exchange traded fund First Trust NASDAQ-100 Select Equal Weight ETF (QQEW - Free Report) provides investors broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
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.
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.
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
QQEW is managed by First Trust Advisors, and this fund has amassed over $1.91 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Growth. This particular fund seeks to match the performance of the NASDAQ-100 Equal Weighted Index before fees and expenses.
The Nasdaq-100 Select Equal Weight Index is designed to track the performance of the 50 companies from the Nasdaq-100 Index with the highest combined Blended Quality and Growth scores.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.55% for this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.19%.
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.
For QQEW, it has heaviest allocation in the Information Technology sector --about 54.7% of the portfolio --while Healthcare and Consumer Discretionary round out the top three.
When you look at individual holdings, Airbnb, Inc. (class A) (ABNB) accounts for about 2.71% of the fund's total assets, followed by Regeneron Pharmaceuticals, Inc. (REGN) and Workday, Inc. (class A) (WDAY).
Its top 10 holdings account for approximately 25.48% of QQEW's total assets under management.
Performance and Risk
The ETF has added roughly 16.06% so far this year and it's up approximately 17.43% in the last one year (as of 09/23/2026). In the past 52-week period, it has traded between $123.05 and $167.03
QQEW has a beta of 1.08 and standard deviation of 18.33% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk .
Alternatives
First Trust NASDAQ-100 Select Equal Weight ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard Morningstar Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Morningstar Growth ETF has $234.96 billion in assets, Invesco QQQ has $501.69 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.