Benefits & Strategy
QQQE provides equal-weight exposure to all NASDAQ-100® Index holdings, allowing you an opportunity to manage risk in your portfolio through:
- Broader diversification beyond technology sector stocks which may help reduce concentration risk
- Greater performance contribution from companies with smaller market capitalization1
- Quarterly rebalancing for consistent equal-weighting, after regular market fluctuations
1Market Capitalization is the total dollar market value of all of a company’s outstanding shares, and is calculated by multiplying a company’s shares outstanding by the current market price of one share.
The Strategy at Work
Performance contribution in market weighted indexes such as the S&P 500 Index or NASDAQ-100 Index is typically driven by a small number of very large companies with market caps that are considerably higher than the average. Most of the other stocks in the index are typically below the average weight of the index.
By contrast the NASDAQ-100 Equal Weighted Index allots the same weight, or importance, to each stock in the index. The result is a potentially more diversified performance contribution from the individual companies, and sectors that are in the index.
The NASDAQ 100® Equal Weighted Index (NETR) includes 100 of the largest non-financial securities listed on NASDAQ®, but instead of being weighted by market capitalization, each of the constituents is initially set at 1.00%. The index is reviewed and adjusted annually in December, but replacements may be made any time throughout the year. The index is rebalanced quarterly in March, June, September and December. One cannot directly invest in an index.
Sector Weightings %
Top 10 Holdings %
|Facebook – Class A||1.00||3.79|
|Alphabet Inc – Class C||1.00||3.63|
|Alphabet Inc – Class A||1.00||3.32|
Bottom 10 Holdings %
|Fox Corp – Class B||1.00||0.07|
|Fox Corp – Class A||1.00||0.10|
|Check Point Software Technologis||1.00||0.13|
|Trip.com Group Limited||1.00||0.17|
|Maxim Integrated Products Ord||1.00||0.20|
Index Calendar Year Returns % – Comparing the NASDAQ-100® Equal Weighted Index (NETR) to the NASDAQ-100® (XNDX)
Index data as of 3/31/2021. Top holdings are subject to change.
The Nasdaq 100 Index is composed of the 100 largest, most actively traded U.S companies listed on the Nasdaq stock exchange. This index includes companies from a broad range of industries with the exception of those that operate in the financial industry, such as banks and investment companies.
Watch the Video.
Pricing & Performance
NAV and Market Price information as of Invalid date. Line chart shows pricing trend over the last 30 days. The Primary Listing Exchange is the NYSE Arca, Inc.
Download the following Tax Reporting Documents
- Ordinary Income from U.S. Government Obligations (2016)