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Is Direxion NASDAQ-100 Equal Weighted Index ETF (QQQE) a Strong ETF Right Now?
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Making its debut on 03/21/2012, smart beta exchange traded fund Direxion NASDAQ-100 Equal Weighted Index ETF (QQQE - Free Report) provides investors broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
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.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: 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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
QQQE is managed by Direxion, and this fund has amassed over $1.43 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Growth. This particular fund, before fees and expenses, seeks to match the performance of the NASDAQ-100 Equal Weighted Index.
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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.35% for QQQE, making it on par with most peer products in the space.
QQQE's 12-month trailing dividend yield is 0.58%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Representing 41.8% 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, Workday Inc-class A (WDAY) accounts for about 1.41% of total assets, followed by Doordash Inc - A (DASH) and Airbnb Inc-class A (ABNB).
QQQE's top 10 holdings account for about 13.26% of its total assets under management.
Performance and Risk
The ETF return is roughly 18.8% and it's up approximately 21.66% so far this year and in the past one year (as of 09/28/2026), respectively. QQQE has traded between $96.06 and $124.69 during this last 52-week period.
The fund has a beta of 1.09 and standard deviation of 17.32% for the trailing three-year period, which makes QQQE a medium risk choice in this particular space. With about 103 holdings, it effectively diversifies company-specific risk .
Alternatives
Direxion NASDAQ-100 Equal Weighted Index 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 $233.97 billion in assets, Invesco QQQ has $496.41 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?
Making its debut on 03/21/2012, smart beta exchange traded fund Direxion NASDAQ-100 Equal Weighted Index ETF (QQQE - Free Report) provides investors broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
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.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: 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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
QQQE is managed by Direxion, and this fund has amassed over $1.43 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Growth. This particular fund, before fees and expenses, seeks to match the performance of the NASDAQ-100 Equal Weighted Index.
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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.35% for QQQE, making it on par with most peer products in the space.
QQQE's 12-month trailing dividend yield is 0.58%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Representing 41.8% 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, Workday Inc-class A (WDAY) accounts for about 1.41% of total assets, followed by Doordash Inc - A (DASH) and Airbnb Inc-class A (ABNB).
QQQE's top 10 holdings account for about 13.26% of its total assets under management.
Performance and Risk
The ETF return is roughly 18.8% and it's up approximately 21.66% so far this year and in the past one year (as of 09/28/2026), respectively. QQQE has traded between $96.06 and $124.69 during this last 52-week period.
The fund has a beta of 1.09 and standard deviation of 17.32% for the trailing three-year period, which makes QQQE a medium risk choice in this particular space. With about 103 holdings, it effectively diversifies company-specific risk .
Alternatives
Direxion NASDAQ-100 Equal Weighted Index 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 $233.97 billion in assets, Invesco QQQ has $496.41 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.