QQEW - QQEW: More Of A Market Than QQQ Now
2024-02-12 03:50:39 ET
Summary
- The S&P 500 and Nasdaq 100 are increasingly driven by a narrow list of mega-cap Tech names, posing idiosyncratic risk.
- The First Trust NASDAQ-100 Equal Weighted Index Fund ETF offers even exposure and less company-specific risk.
- QQEW's equal-weighted approach favors smaller companies and offers a more diversified portfolio, but may underperform during periods of tech giants' outperformance.
There has never been a time in history where "the market" has as much idiosyncratic risk as it does now. Both the S&P 500 and Nasdaq 100 are increasingly being driven by a narrower and narrower list of mega-cap Tech names. At some point, this ends. Now, of course, this can end with other stocks playing catch up to these names, which is why the First Trust NASDAQ-100 Equal Weighted Index Fund ETF ( QQEW ) is worth considering for more even exposure and less company-specific risk....
QQEW: More Of A Market Than QQQ Now