Is First Trust NASDAQ-100 Ex-Technology Sector ETF (QQXT) a Strong ETF Right Now?

The First Trust NASDAQ-100 Ex-Technology Sector ETF (QQXT) made its debut on 02/08/2007, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Growth category of the market.

What Are Smart Beta ETFs?

Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.

On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.

Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

The fund is sponsored by First Trust Advisors. It has amassed assets over $204.76 million, making it one of the average sized ETFs in the Style Box - Large Cap Growth. QQXT, before fees and expenses, seeks to match the performance of the NASDAQ-100 Ex-Tech Sector Index.

The NASDAQ-100 Ex-Tech Sector Index is an equal-weighted index based on the securities of the NASDAQ-100 Index that are not classified as technology and, as a result, is a subset of the NASDAQ-100 Index. The NASDAQ-100 Index includes 100 of the largest domestic and international non-financial companies listed on NASDAQ based on market capitalization.

Cost & Other Expenses

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.

Annual operating expenses for QQXT are 0.60%, which makes it one of the more expensive products in the space.

QQXT's 12-month trailing dividend yield is 1.17%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

For QQXT, it has heaviest allocation in the Industrials sector --about 19.1% of the portfolio --while Healthcare and Consumer Staples round out the top three.

Taking into account individual holdings, Baker Hughes Company (class A) (BKR) accounts for about 2.29% of the fund's total assets, followed by Old Dominion Freight Line, Inc. (ODFL) and Gilead Sciences, Inc. (GILD).

QQXT's top 10 holdings account for about 20.9% of its total assets under management.

Performance and Risk

So far this year, QQXT has gained about 3.23%, and it's up approximately 5.36% in the last one year (as of 02/25/2026). During this past 52-week period, the fund has traded between $84.34 and $102.58.

The fund has a beta of 0.90 and standard deviation of 13.50% for the trailing three-year period, which makes QQXT a medium risk choice in this particular space. With about 57 holdings, it effectively diversifies company-specific risk .

Alternatives

First Trust NASDAQ-100 Ex-Technology Sector ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.

Vanguard Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth ETF has $195.99 billion in assets, Invesco QQQ has $399.8 billion. VUG has an expense ratio of 0.03% and QQQ changes 0.20%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Growth

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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First Trust NASDAQ-100 Ex-Technology Sector ETF (QQXT): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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