Should You Invest in the First Trust NASDAQ-100-Technology Sector ETF (QTEC)?

Core Insights - The First Trust NASDAQ-100-Technology Sector ETF (QTEC) is a passively managed ETF launched on April 19, 2006, providing broad exposure to the Technology - Broad segment of the equity market [1] - QTEC has gained popularity among retail and institutional investors due to its low costs, transparency, flexibility, and tax efficiency, making it suitable for long-term investment [1] Fund Overview - Sponsored by First Trust Advisors, QTEC has over $2.68 billion in assets, positioning it as one of the larger ETFs in the Technology - Broad segment [3] - The ETF aims to match the performance of the NASDAQ-100 Technology Sector Index, which is an equal-weighted index of technology securities from the NASDAQ-100 Index [3] Cost Structure - The annual operating expenses for QTEC are 0.55%, which is competitive with most peer products in the ETF space [4] Sector Exposure and Holdings - QTEC has a significant allocation in the Information Technology sector, comprising approximately 87.5% of the portfolio, with Telecom and Consumer Discretionary as the next largest sectors [5] - Datadog, Inc. (class A) (DDOG) represents about 2.57% of total assets, with the top 10 holdings accounting for approximately 23.9% of total assets under management [6] Performance Metrics - As of August 5, 2025, QTEC has increased by about 13.02% year-to-date and approximately 22.55% over the past year [7] - The ETF has traded between $149.56 and $218.81 in the last 52 weeks, with a beta of 1.25 and a standard deviation of 28.23% over the trailing three-year period, indicating higher risk [7] Investment Alternatives - QTEC holds a Zacks ETF Rank of 2 (Buy), indicating strong potential based on expected asset class return, expense ratio, and momentum [8] - Other notable ETFs in the technology sector include the Technology Select Sector SPDR ETF (XLK) and the Vanguard Information Technology ETF (VGT), with XLK having $83.43 billion in assets and VGT $97.70 billion [9]