Should First Trust NASDAQ-100 Select Equal Weight ETF (QQEW) Be on Your Investing Radar?

The First Trust NASDAQ-100 Select Equal Weight ETF (QQEW) was launched on April 19, 2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.The fund is sponsored by First Trust Advisors. It has amassed assets over $1.81 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.Why Large Cap GrowthCompanies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Further, growth stocks have a higher level of volatility associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets. CostsExpense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.Annual operating expenses for this ETF are 0.55%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.2%.Sector Exposure and Top HoldingsEven 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 to the Information Technology sector -- about 59.8% of the portfolio. Healthcare and Consumer Discretionary round out the top three.Looking at individual holdings, Seagate Technology Holdings Plc (STX) accounts for about 2.31% of total assets, followed by Monolithic Power Systems, Inc. (MPWR) and Arm Holdings Plc (ARM).The top 10 holdings account for about 21.66% of total assets under management.Performance and RiskQQEW 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.The ETF has added about 12% so far this year and was up about 16.8% in the last one year (as of 07/02/2026). In the past 52-week period, it has traded between $123.05 and $161.85.The ETF has a beta of 1.07 and standard deviation of 18.17% for the trailing three-year period, making it a medium risk choice in the space. With about 52 holdings, it effectively diversifies company-specific risk.AlternativesFirst Trust NASDAQ-100 Select Equal Weight 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, QQEW is an outstanding option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well. The Vanguard Growth Index Fund ETF Shares (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth Index Fund ETF Shares has $223.48 billion in assets, Invesco QQQ has $488.59 billion. VUG has an expense ratio of 0.03% and QQQ charges 0.18%.Bottom-LinePassively 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.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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks