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Is First Trust NASDAQ-100 Ex-Technology Sector ETF (QQXT) a Strong ETF Right Now?
ZACKSยท2025-08-20 11:21

Core Viewpoint - The First Trust NASDAQ-100 Ex-Technology Sector ETF (QQXT) is a smart beta ETF designed to provide broad exposure to the large-cap growth segment of the market, focusing on non-technology sectors of the NASDAQ-100 Index [1][5]. Fund Overview - QQXT was launched on February 8, 2007, and has accumulated over $1.11 billion in assets, making it an average-sized ETF in its category [1][5]. - The fund is managed by First Trust Advisors and aims to match the performance of the NASDAQ-100 Ex-Tech Sector Index, which is an equal-weighted index of non-technology securities from the NASDAQ-100 [5][6]. Cost and Expenses - The annual operating expense ratio for QQXT is 0.60%, which is considered relatively high compared to other ETFs in the space [7]. - The fund has a 12-month trailing dividend yield of 0.73% [7]. Sector Exposure and Holdings - The fund has a significant allocation of 19.4% to the Industrials sector, with Healthcare and Consumer Discretionary also being prominent sectors [8]. - The top three holdings include Old Dominion Freight Line, Inc. (1.89% of total assets), Paypal Holdings, Inc., and Honeywell International Inc., with the top 10 holdings accounting for approximately 18.65% of total assets [9]. Performance Metrics - Year-to-date, QQXT has increased by approximately 6.69%, and it was up about 9.72% over the last 12 months as of August 20, 2025 [10]. - The fund has traded between $84.34 and $101.22 in the past 52 weeks, with a beta of 0.93 and a standard deviation of 15.98% over the trailing three-year period, indicating medium risk [10]. Alternatives - Other ETFs in the large-cap growth segment include Vanguard Growth ETF (VUG) with $183.46 billion in assets and an expense ratio of 0.04%, and Invesco QQQ (QQQ) with $366.75 billion in assets and an expense ratio of 0.20% [11]. - Investors seeking lower-cost options may consider traditional market cap weighted ETFs that aim to match the returns of the large-cap growth segment [12].