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Is First Trust NASDAQ-100 Equal Weighted ETF (QQEW) a Strong ETF Right Now?

The First Trust NASDAQ-100 Equal Weighted ETF (QQEW) was introduced on 04/19/2006 as a smart beta exchange traded fund that offers broad exposure to the Style Box – Large Cap Growth category of the market.

Smart beta ETFs are a different approach from traditional market cap weighted indexes. While market cap weighted indexes aim to replicate market returns efficiently, smart beta funds track non-cap weighted strategies. These funds select stocks based on specific fundamental characteristics to potentially outperform the market.

Managed by First Trust Advisors, QQEW seeks to match the performance of the NASDAQ-100 Equal Weighted Index. This index is the equal-weighted version of the NASDAQ-100 Index, consisting of 100 of the largest non-financial securities listed on NASDAQ by market capitalization.

With an expense ratio of 0.58% and a 12-month trailing dividend yield of 0.68%, QQEW is on par with its competitors in the Large Cap Growth space. The fund’s heaviest sector allocation is Information Technology, followed by Consumer Discretionary and Healthcare.

QQEW’s top holdings include Crowdstrike Holdings, Inc., Pdd Holdings Inc., and Advanced Micro Devices, Inc., with the top 10 holdings accounting for about 12.55% of its total assets.

Performance-wise, QQEW has returned approximately 2.95% and is up around 23.46% year-to-date and in the past year. With a beta of 1.05 and a standard deviation of 22.03%, the ETF is considered a medium risk choice with effective diversification.

Investors seeking alternatives in the Large Cap Growth segment can also consider Vanguard Growth ETF (VUG) and Invesco QQQ (QQQ). VUG tracks CRSP U.S. Large Cap Growth Index while QQQ tracks NASDAQ-100 Index. Both have different asset sizes and expense ratios.

In conclusion, the First Trust NASDAQ-100 Equal Weighted ETF (QQEW) is a solid choice for investors looking to outperform in the Large Cap Growth space. For more information on this product and other ETFs, investors can explore Zacks ETF Center.

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