Nasdaq ETFs with significantly lower Apple weights than QQQ have been solid performers this year. For instance, the Direxion NASDAQ-100 Equal Weighted Index Shares (NYSEArca: QQQE) and First Trust NASDAQ-100 Equal Weighted Index Fund (NasdaqGS: QQEW) are each up about 3% year-to-date.
As the appellation suggests, each of QQQE and QQEW’s underlying holdings make up more or less 1% of the overall portfolios. Consequently, due to the weighting methodology, the two ETFs include a much larger tilt toward mid-sized companies. The ETF’s also feature significantly lower tech weights than QQQ. [An Equal-Weight Approach to the Nasdaq]
Tom Lydon’s clients own shares of QQQ and Apple.