WBD - QTEC Should Outperform Nasdaq In Second Wave Of AI Gold Rush

2024-07-02 10:12:01 ET

Summary

• The First Trust Nasdaq-100-Technology Sector Index Fund ETF focuses on technology stocks from the Nasdaq 100 index with an equal-weight strategy.
• Despite underperforming the Nasdaq 100 index in the past, QTEC has the potential to outperform in the second wave of the AI gold rush.
• QTEC's higher expense ratio due to its equal-weight strategy is a consideration for investors, but the fund is still worth considering for its growth potential.

ETF Overview

First Trust Nasdaq-100-Technology Sector Index Fund ETF ( QTEC ) includes a portfolio of technology stocks selected from the Nasdaq 100 index. The fund implements an equal-weight strategy to build its portfolio, and rebalances its portfolio four times a year. Despite its focus on technology stocks, QTEC has underperformed the Nasdaq 100 index in the past few years as the mega-cap 8 (eight mega cap tech stocks) contributed most of the returns of the index....

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