First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW)QQEW

ETF First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW) Overview:

Profile:

QQEW is an ETF that tracks the NASDAQ-100 Equal Weighted Index. This means it holds all 100 of the largest non-financial companies listed on the NASDAQ, but instead of weighting them by market capitalization like the regular NASDAQ-100, it weights them equally. This gives smaller companies a bigger voice in the index and reduces the impact of large tech giants.

Objective:

QQEW aims to provide investment results that, before expenses, generally correspond to the price and yield performance of the NASDAQ-100 Equal Weighted Index.

Issuer:

First Trust is a global asset management firm with over $229 billion in assets under management. They have a strong reputation for innovation and transparency, and have been recognized by industry publications for their performance and client service.

Market Share:

QQEW has a market share of approximately 0.2% in the equal-weighted index ETF space.

Total Net Assets:

QQEW has total net assets of approximately $1.6 billion.

Moat:

QQEW's main competitive advantage is its unique equal-weighted approach. This can lead to better diversification and performance compared to traditional market-cap weighted indexes, especially in periods of high volatility.

Financial Performance:

QQEW has historically outperformed the NASDAQ-100 Index, especially during periods of market volatility. Since its inception in 2014, QQEW has returned an annualized 16.5%, compared to 14.7% for the NASDAQ-100.

Growth Trajectory:

The equal-weighted index approach has gained popularity in recent years, as investors look for ways to diversify their portfolios and mitigate risk. This suggests that QQEW could see continued growth in the future.

Liquidity:

QQEW has an average daily trading volume of over 1 million shares, making it a highly liquid ETF. The bid-ask spread is also relatively tight, making it easy to buy and sell shares without incurring significant costs.

Market Dynamics:

The performance of QQEW will be affected by factors such as the overall performance of the technology sector, interest rate changes, and economic growth.

Competitors:

• Invesco S&P 500 Equal Weight ETF (RSP)
• Guggenheim S&P 500 Equal Weight ETF (RSP)
• iShares S&P 500 Equal Weight ETF (RSP)

Expense Ratio:

QQEW has an expense ratio of 0.58%.

Investment Approach and Strategy:

QQEW tracks the NASDAQ-100 Equal Weighted Index, holding all 100 of the largest non-financial companies listed on the NASDAQ and weighting them equally.

Key Points:

• Equal-weighted index approach
• Outperformed the NASDAQ-100 Index in recent years
• Highly liquid
• Low expense ratio

Risks:

• Technology sector risk
• Interest rate risk
• Economic growth risk

Who Should Consider Investing:

• Investors looking for exposure to the technology sector
• Investors seeking diversification and mitigation of risk
• Investors with a long-term investment horizon

Fundamental Rating Based on AI:

7/10

QQEW has a strong track record, a competitive advantage in its equal-weighted approach, and a low expense ratio. However, it is still a relatively young ETF with a limited track record, and the technology sector can be volatile. Overall, QQEW is a solid choice for investors looking for a diversified and cost-effective way to invest in the technology sector.

Resources:

• First Trust Website: https://www.ftportfolios.com/
• Yahoo Finance: https://finance.yahoo.com/quote/QQEW/
• ETFdb: https://etfdb.com/etf/QQEW/

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.