Should Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) Be on Your Investing Radar?

Core Insights - The Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) is a passively managed ETF launched on March 21, 2012, designed to provide broad exposure to the Large Cap Growth segment of the US equity market, with assets exceeding $1.26 billion [1] - Large cap companies typically have market capitalizations above $10 billion, characterized by stability and predictable cash flows, making them less volatile compared to mid and small cap companies [2] - Growth stocks, which QQQE primarily invests in, exhibit higher sales and earnings growth rates but also come with higher valuations and volatility [3] Costs - The annual operating expenses for QQQE are 0.35%, which is competitive within its peer group, and it has a 12-month trailing dividend yield of 0.60% [4] Sector Exposure and Top Holdings - QQQE has a significant allocation of approximately 40.10% to the Information Technology sector, followed by Consumer Discretionary and Telecom [5] - The top 10 holdings represent about 10.69% of total assets, with Datadog Inc - Class A (DDOG) accounting for around 1.16% of total assets [6] Performance and Risk - QQQE aims to match the performance of the NASDAQ-100 Equal Weighted Index, which includes 100 of the largest non-financial securities listed on NASDAQ [7] - The ETF has returned approximately 11.52% year-to-date and 12.01% over the past year, with a trading range between $76.98 and $99.91 in the last 52 weeks [8] - With a beta of 1.07 and a standard deviation of 19.85% over the trailing three-year period, QQQE is considered a medium risk investment [8] Alternatives - Other ETFs in the same space include the Vanguard Growth ETF (VUG) and Invesco QQQ (QQQ), with VUG having $179.21 billion in assets and an expense ratio of 0.04%, while QQQ has $358.16 billion in assets and charges 0.20% [11] Bottom-Line - Passively managed ETFs like QQQE are gaining popularity among both institutional and retail investors due to their low cost, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [12]