Should First Trust NASDAQ-100 Select Equal Weight ETF (QQEW) Be on Your Investing Radar?

Core Viewpoint - The First Trust NASDAQ-100 Select Equal Weight ETF (QQEW) is a passively managed ETF aimed at providing broad exposure to the Large Cap Growth segment of the US equity market, with assets exceeding $1.73 billion, making it one of the larger ETFs in this category [1] Group 1: Large Cap Growth - Large cap companies typically have a market capitalization above $10 billion and are considered more stable with predictable cash flows, exhibiting less volatility compared to mid and small cap companies [2] - Growth stocks are characterized by faster growth rates, higher valuations, and above-average sales and earnings growth rates, although they tend to be more volatile [3] Group 2: Costs - The ETF has an annual operating expense ratio of 0.55%, which is competitive within its peer group, and a 12-month trailing dividend yield of 0.43% [4] Group 3: Sector Exposure and Holdings - The ETF has a significant allocation of approximately 50.5% to the Information Technology sector, with Healthcare and Telecom also being prominent sectors [5] - Western Digital Corporation (WDC) represents about 3.21% of total assets, with the top 10 holdings comprising approximately 26.18% of total assets under management [6] Group 4: Performance and Risk - QQEW aims to match the performance of the NASDAQ-100 Equal Weighted Index, having lost about 5.29% year-to-date and gained approximately 3.83% over the past year as of February 27, 2026, with a trading range between $106.81 and $146.24 in the past 52 weeks [7] - The ETF has a beta of 1.06 and a standard deviation of 17.41% over the trailing three-year period, indicating a medium risk profile with effective diversification across 51 holdings [8] Group 5: Alternatives - The Vanguard Growth ETF (VUG) and Invesco QQQ (QQQ) are alternative ETFs tracking similar indices, with VUG having $196.69 billion in assets and an expense ratio of 0.03%, while QQQ has $399.83 billion in assets and charges 0.18% [11] Group 6: Bottom-Line - Passively managed ETFs like QQEW are increasingly popular among retail and institutional investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [12]