First Trust NASDAQ-100 Ex-Technology Sector Index Fund (QQXT)

Overview

The First Trust NASDAQ-100 Ex-Technology Sector Index Fund seeks investment results that correspond generally to the price and yield of the NASDAQ-100 Ex-Technology Sector Index. It provides exposure to non-technology companies within the NASDAQ-100, offering diversification across sectors like consumer discretionary, healthcare, and financials. The fund uses a passive management approach, aiming to replicate the index's performance.

Reputation and Reliability

First Trust is a well-established ETF provider known for its innovative and diverse product offerings. It has a solid track record in managing and delivering index-tracking ETFs.

Management Expertise

First Trust has a team of experienced investment professionals specializing in ETF management and index replication. They possess considerable expertise in portfolio construction and tracking error minimization.

Goal

To provide investment results that correspond generally to the price and yield of the NASDAQ-100 Ex-Technology Sector Index.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, aiming to track the performance of the NASDAQ-100 Ex-Technology Sector Index.

Composition The fund holds stocks of non-technology companies within the NASDAQ-100. These include large-cap companies across sectors such as consumer discretionary, healthcare, financials, and communication services.

Market Share: Insufficient data to provide an accurate market share.

Total Net Assets (AUM): 941100000

Key Competitors

• Invesco QQQ Trust (QQQ)
• SPDR S&P 500 ETF Trust (SPY)
• Vanguard Total Stock Market ETF (VTI)

Competitive Landscape

The ETF market is highly competitive, with numerous ETFs offering exposure to various sectors and market segments. QQXT competes primarily with broader market ETFs such as QQQ, SPY, and VTI. Its advantage lies in providing targeted exposure to non-tech NASDAQ-100 companies, but it has a smaller AUM compared to its competitors. It is an advantage to investors wanting exposure in other areas than technology sector.

Historical Performance: Insufficient detailed performance data to create a structured array. Performance data is readily available from financial websites.

Benchmark Comparison: The ETF aims to track the NASDAQ-100 Ex-Technology Sector Index. Any performance difference is due to tracking error.

Expense Ratio: 0.58

Average Trading Volume

The average daily trading volume provides sufficient liquidity for most investors.

Bid-Ask Spread

The typical bid-ask spread indicates relatively low trading costs.

Market Environment Factors

Economic growth, interest rates, inflation, and sector-specific trends influence the fund's performance. Consumer spending, healthcare advancements, and financial sector regulations are also important.

Growth Trajectory

The ETF's growth depends on the performance of the non-technology sectors within the NASDAQ-100 and investor demand for sector-specific exposure. Changing economic conditions and shifts in investor sentiment can impact holdings and holdings weights.

Competitive Edge

QQXT's competitive advantage stems from its unique focus on the NASDAQ-100 excluding technology companies, providing investors with a specific sector allocation tool. This allows for targeted diversification away from the tech-heavy NASDAQ-100. The fund offers precise exposure, minimizing overlap with broad market ETFs. First Trust's reputation and expertise further enhance its appeal.

Volatility

Volatility depends on the underlying sectors. Some sectors such as consumer discretionary may have higher volatility.

Market Risk

Market risk stems from economic downturns and sector-specific challenges. Changes in consumer preferences, healthcare regulations, and financial market volatility can impact the fund's holdings.

Ideal Investor Profile

The ideal investor is someone seeking targeted exposure to non-technology sectors within the NASDAQ-100. It is appropriate for those looking to diversify away from technology or tilt their portfolio towards specific sectors like consumer discretionary or healthcare.

Market Risk

The ETF is suitable for long-term investors and potentially active traders who want to implement sector rotation strategies. It is a good tool for passive index followers seeking targeted diversification.

First Trust NASDAQ-100 Ex-Technology Sector Index Fund provides investors with targeted access to the non-technology portions of the NASDAQ-100. Its primary goal is tracking the underlying index's performance, enabling investors to diversify away from tech stocks. With a moderate expense ratio, it aims to offer sector-specific exposure for investors' long-term goals or sector rotation strategies. The fund's performance is highly dependent on the health and stability of the non-technology companies and sectors within the NASDAQ-100.

• RYF
• XLY
• XHB
• FXR
• IYC

Data Sources:

• First Trust Website
• ETF.com
• Morningstar
• Yahoo Finance

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Market conditions and ETF performance can change over time.