Investors looking for an avenue to the Nasdaq 100 sans tech can consider the First Trust NASDAQ-100 Ex-Technology Sector Index Fund (NasdaqGS: QQXT). QQXT allocates 21.2% of its weight to the health care sector compared to 13.9% for QQQ.
One potential drawback to QQXT is its 45.3 weight to consumer discretionary, more than double that of QQQ. To be fair, that is a drawback for QQXT if Tesla continues falling and names like Amazon (NasdaqGM: AMZN) and Comcast (NasdaqGM: CMCSA), to name a pair, experience price retrenchment.
Although QQQ has slightly outpaced QQXT since Nov. 15, the latter is having a stellar year with a 32.5% gain. QQXT has $84 million in assets, 28.5% of which have come into the fund this year. [Take the Nasdaq, Leave the Tech]
First Trust NASDAQ-100 Ex-Technology Sector Index Fund
Tom Lydon’s clients own shares of QQQ, Apple, Amazon, Microsoft and Google.