Designed to provide broad exposure to the Technology - Broad segment of the equity market, the First Trust NASDAQ-100-Technology Sector ETF (QTEC Quick QuoteQTEC - Free Report) is a passively managed exchange traded fund launched on April 19, 2006.

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.

Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.

Index Details

The fund is sponsored by First Trust Advisors. It has amassed assets over $4.49 billion, making it one of the larger ETFs attempting to match the performance of the Technology - Broad segment of the equity market. 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.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.55%, 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

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Information Technology sector -- about 83.3% of the portfolio. Telecom and Consumer Discretionary round out the top three.

Looking at individual holdings, Advanced Micro Devices, Inc. (AMD) accounts for about 2.73% of total assets, followed by Intel Corporation (INTC) and Marvell Technology, Inc. (MRVL).

The top 10 holdings account for about 25.41% of total assets under management.

Performance and Risk

The ETF has added roughly 33.01% so far this year and is up about 29.25% in the last one year (as of 10/21/2026). In that past 52-week period, it has traded between $207.03 and $340.28.

The ETF has a beta of 1.43 and standard deviation of 27.05% for the trailing three-year period, making it a high risk choice in the space. With about 48 holdings, it has more concentrated exposure than peers.

Alternatives

First Trust NASDAQ-100-Technology Sector ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, QTEC is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that 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 $122.12 billion in assets, Vanguard Information Technology Index Fund ETF Shares has $148.09 billion. XLK has an expense ratio of 0.08%, and VGT charges 0.09%.

Bottom Line

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