The Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) made its debut on 03/21/2012, and is a great beta change traded fund that gives broad publicity to the Type Field – Massive Cap Development class of the market.
What are good beta ETFs?
The ETF trade has historically been dominated by merchandise primarily based on market capitalization weighted indexes which are designed to signify the market or a selected section of the market.
Traders who imagine in market effectivity ought to think about market cap indexes, as they replicate market returns in a low-cost, handy, and clear manner.
Alternatively, some traders who imagine that it’s attainable to beat the market by superior inventory choice decide to put money into one other class of funds that monitor non-cap weighted strategies–popularly referred to as good beta.
This sort of index follows this identical mindset, because it makes an attempt to choose shares which have higher probabilities of risk-return efficiency; non-cap weighted methods base choice on sure elementary traits, or a mixture of such traits.
The good beta house offers traders many alternative decisions, from equal-weighting, one of many easiest methods, to extra sophisticated ones like elementary and volatility/momentum primarily based weighting. Nevertheless, not all of those methodologies have been in a position to ship outstanding returns.
Fund sponsor and Index
The fund is managed by Direxion, and has been in a position to amass over $1.13 billion, which makes it one of many common sized ETFs within the Type Field – Massive Cap Development. This specific fund, earlier than charges and bills, seeks to match the efficiency of the NASDAQ-100 Equal Weighted Index.
The NASDAQ-100 Equal Weighted Index consists of firms within the NASDAQ-100 Index however every of the securities is initially set at a weight of 1.00% of the Index. The NASDAQ-100 Index consists of 100 of the biggest non-financial securities listed on NASDAQ primarily based on capitalization.
Price and different bills
Traders also needs to take note of an ETF’s expense ratio. Decrease price merchandise will produce higher outcomes than these with the next price, assuming all different metrics stay the identical.
Working bills on an annual foundation are 0.35% for this ETF, which makes it on par with most peer merchandise within the house.
The fund has a 12-month trailing dividend yield of 0.59%.
Sector publicity and high holdings
Although ETFs supply diversified publicity which minimizes single inventory threat, it’s nonetheless necessary to look right into a fund’s holdings earlier than investing. Fortunately, most ETFs are very clear merchandise that disclose their holdings each day.
Representing 40.3% of the portfolio, the fund has heaviest allocation to the Data Know-how sector; Client Discretionary and Healthcare spherical out the highest three.
particular person holdings, Superior Micro Gadgets (AMD) accounts for about 1.45% of complete belongings, adopted by Intel Corp (INTC) and Marvell Know-how Inc (MRVL).
The highest 10 holdings account for about 11.97% of complete belongings underneath administration.
Efficiency and threat
The ETF return is roughly 12.7% and it is up roughly 8.14% to date this yr and prior to now one yr (as of 11/14/2025), respectively. QQQE has traded between $76.98 and $105.23 throughout this final 52-week interval.
The fund has a beta of 1.09 and customary deviation of 17.78% for the trailing three-year interval, which makes QQQE a medium threat selection on this specific house. With about 102 holdings, it successfully diversifies company-specific threat.
Alternate options
Direxion NASDAQ-100 Equal Weighted Index Shares is an inexpensive choice for traders searching for to outperform the Type Field – Massive Cap Development section of the market. Nevertheless, there are different ETFs within the house which traders may think about.
Vanguard Development ETF (VUG) tracks CRSP U.S. Massive Cap Development Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Development ETF has $198.33 billion in belongings, Invesco QQQ has $396.65 billion. VUG has an expense ratio of 0.04% and QQQ modifications 0.20%.
Traders in search of cheaper and lower-risk choices ought to think about conventional market cap weighted ETFs that purpose to match the returns of the Type Field – Massive Cap Development.
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