First Trust NASDAQ-100 Ex-Technology Sector Index Fund (QQXT)

Overview

The First Trust NASDAQ-100 Ex-Technology Sector Index Fund (QQXT) seeks investment results that correspond generally to the price and yield (before the Fundu2019s fees and expenses) of an equity index called the NASDAQ-100 Ex-Technology Sector Index. It offers exposure to the largest non-technology companies within the NASDAQ-100.

Reputation and Reliability

First Trust is a well-established ETF issuer with a strong reputation for providing innovative investment solutions.

Management Expertise

First Trust has a dedicated team of experienced professionals managing its ETFs, ensuring adherence to investment objectives and strategies.

Goal

To provide investment results that correspond generally to the price and yield of the NASDAQ-100 Ex-Technology Sector Index.

Investment Approach and Strategy

Strategy: Tracks the NASDAQ-100 Ex-Technology Sector Index, which excludes technology companies from the broader NASDAQ-100 Index.

Composition Primarily holds stocks of non-technology companies included in the NASDAQ-100, spanning sectors like consumer discretionary, healthcare, industrials, and financials.

Market Share: Market share in the 'ex-tech' segment of the NASDAQ-100 is substantial, but difficult to quantify precisely due to the diverse nature of ETF categorization.

Total Net Assets (AUM): 102920000

Key Competitors

• Invesco QQQ Trust (QQQ)
• SPDR S&P 500 ETF Trust (SPY)
• iShares Core S&P 500 ETF (IVV)

Competitive Landscape

The ETF industry is highly competitive, with numerous funds vying for investor capital. QQXT offers a niche focus excluding technology stocks from the NASDAQ-100, differentiating it from broader market ETFs like QQQ, SPY and IVV. This specialized focus may appeal to investors seeking diversification away from the tech sector. However, this specialization might limit its appeal compared to more broadly diversified options. QQQ offers exposure to tech stocks that are not found in QQXT.

Historical Performance: Historical performance data should be obtained from reliable financial data providers. Numerical data should be presented in an array format once available. Example: [1.2, 3.4, 5.6, 7.8, 9.0]

Benchmark Comparison: Benchmark comparison data should be obtained from reliable financial data providers. Numerical data should be presented in an array format once available. Example: [1.1, 3.3, 5.5, 7.7, 8.9]

Expense Ratio: 0.58

Average Trading Volume

QQXT's average trading volume indicates moderate liquidity, enabling relatively easy buying and selling of shares.

Bid-Ask Spread

The bid-ask spread for QQXT is generally competitive, reflecting moderate transaction costs.

Market Environment Factors

Economic indicators, sector-specific growth prospects (outside of technology), and overall market sentiment influence QQXT's performance. Changes in interest rates, consumer spending, and healthcare regulations can particularly affect its holdings.

Growth Trajectory

The ETF's growth depends on investor demand for ex-technology exposure and the performance of the non-tech sectors within the NASDAQ-100. Shifts in investment strategy are uncommon, aligning with its index-tracking approach.

Competitive Edge

QQXT's competitive advantage lies in its targeted exposure to the NASDAQ-100 excluding technology companies, offering a unique diversification option. This niche focus differentiates it from broad market ETFs and allows investors to fine-tune their sector allocation. The ETF's transparent index-tracking methodology ensures consistent investment strategy. It is suitable for investors looking to reduce their technology exposure within the NASDAQ-100.

Volatility

QQXT's volatility generally mirrors the volatility of the non-technology sectors within the NASDAQ-100.

Market Risk

Market risk is inherent due to the ETF's investment in equities, and sector-specific risks within consumer discretionary, healthcare, industrials, and financials also apply.

Ideal Investor Profile

The ideal investor for QQXT is someone seeking to diversify their portfolio away from technology stocks while still maintaining exposure to large-cap growth companies.

Market Risk

QQXT is suitable for long-term investors seeking targeted sector exposure or for active traders looking to make tactical adjustments to their portfolio's technology allocation.

QQXT offers targeted exposure to the NASDAQ-100 excluding technology companies, making it a unique tool for diversification. Its index-tracking strategy provides transparency and consistency, while its expense ratio is comparable to other sector-specific ETFs. The fund's performance is tied to the performance of non-tech sectors, and its moderate liquidity allows for relatively easy trading. QQXT is suitable for investors aiming to reduce technology exposure or actively manage their sector allocations within a growth-oriented portfolio.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar
• Yahoo Finance

Disclaimers:

The information provided is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Market data is delayed.