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QQEW: Limited Benefits From Smart Beta

Vasily Zyryanov profile picture
Vasily Zyryanov


  • QQEW is the largest and the oldest fund offering exposure to an equally-weighted version of the Nasdaq-100 index.
  • QQEW has larger exposure to value stocks if compared to QQQ. Its allocation to growth and momentum plays is much lower.
  • Hefty expenses are partly to blame for its underperformance.
  • Its large counterpart is ahead in almost every possible sense, with better Momentum, Dividends, Expenses, and Asset Flows, except for Risk that is elevated given top-heaviness.
Nasdaq quotation on illuminated boards in Times Square

Manakin/iStock Editorial via Getty Images

Smart-beta funds are an area of particular interest of mine. Today, I would like to discuss another one - the First Trust NASDAQ-100 Equal Weight Index ETF (NASDAQ:QQEW). The fund is the largest and the oldest in the

This article was written by

Vasily Zyryanov profile picture
Vasily Zyryanov is an individual investor and writer.He uses various techniques to find both relatively underpriced equities with strong upside potential and relatively overappreciated companies that have inflated valuation for a reason.In his research, he pays much attention to the energy sector (oil & gas supermajors, mid-cap, and small-cap exploration & production companies, the oilfield services firms), while he also covers a plethora of other industries from mining and chemicals to luxury bellwethers.He firmly believes that apart from simple profit and sales analysis, a meticulous investor must assess Free Cash Flow and Return on Capital to gain deeper insights and avoid sophomoric conclusions.While he favors underappreciated and misunderstood equities, he also acknowledges that some growth stocks do deserve their premium valuation, and its an investor's primary goal to delve deeper and uncover if the market's current opinion is correct or not.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (1)

I use this fund and other equal-weighted funds as part of my ESG strategy. Yes, I know there are funds out there that are designed to be ESG, but with equal-weighted funds I can be reasonably sure I'm not too heavily weighted in a non-ESG company (aside from some temporary style drift in between re-balancing) and I can do it without relying on someone else's judgement whose view of ESG may be different from mine.
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