Should Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) Be on Your Investing Radar?

The Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) was launched on 03/21/2012, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.The fund is sponsored by Direxion. It has amassed assets over $1.26 billion, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.Why Large Cap GrowthCompanies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Further, growth stocks have a higher level of volatility associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.CostsWhen considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.Annual operating expenses for this ETF are 0.35%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.65%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Information Technology sector--about 39.50% of the portfolio. Consumer Discretionary and Industrials round out the top three.Looking at individual holdings, Starbucks Corp (SBUX) accounts for about 1.30% of total assets, followed by Gilead Sciences Inc (GILD) and T-Mobile Us Inc (TMUS).The top 10 holdings account for about 11.99% of total assets under management.Performance and RiskQQQE seeks to match the performance of the NASDAQ-100 Equal Weighted Index before fees and expenses. The NASDAQ-100 Equal Weighted Index consists of companies in the NASDAQ-100 Index but each of the securities is initially set at a weight of 1.00% of the Index. The NASDAQ-100 Index includes 100 of the largest non-financial securities listed on NASDAQ based on capitalization.The ETF has lost about -0.85% so far this year and is up about 1.07% in the last one year (as of 03/21/2025). In the past 52-week period, it has traded between $82.41 and $97.98.The ETF has a beta of 1.05 and standard deviation of 20.52% for the trailing three-year period, making it a medium risk choice in the space. With about 102 holdings, it effectively diversifies company-specific risk.AlternativesDirexion NASDAQ-100 Equal Weighted Index Shares holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, QQQE is a great option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $144.88 billion in assets, Invesco QQQ has $301.68 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.Bottom-LineWhile an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports Starbucks Corporation (SBUX): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports T-Mobile US, Inc. (TMUS): Free Stock Analysis Report Vanguard Growth ETF (VUG): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks