Direxion, an exchange traded fund provider known for its leveraged and inverse investment strategies, launched an equal-weight Nasdaq-100 ETF Wednesday.

Direxion NASDAQ-100 Equal Weighted Index Shares (NYSEArca: QQQE) has an expense ratio of 0.35%. [Technology ETF Spotlight: Nasdaq-100]

The fund will rebalance quarterly to achieve its equal-weight objective, which may result in high portfolio turnover and higher transaction costs. [Nasdaq-100 ETF Rises on Apple Dividend]

Most traditional equity indices weight stocks by market capitalization. For instance, Apple (NasdaqGS: AAPL) comprises around 20% of some tech sector ETFs. [Technology ETFs with Big Positions in Apple]

In contrast, an equal-weight methodology allows small- and mid-cap components to have a bigger say in the overall performance of a the fund. However, the heavier weighting in smaller companies may also contribute to greater volatility. [Why an Equal-Weight ETF is Outperforming in 2012]