What Is the QTEC ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
The First Trust NASDAQ-100 Technology Sector Index Fund (QTEC) holds technology sector stocks on an equal-weighted basis, which invites comparison with market-cap-weighted ETFs such as VGT and XLK. Diversification benefits and the difference in fees are the key selection criteria for investors.
SubscribeWhat Is the First Trust NASDAQ-100 Technology Sector Index Fund ETF?
This ETF selects only the stocks classified in the technology sector from the Nasdaq 100 Index constituents and holds them on an equal-weighted basis. Its core concept is a structure that reduces concentration in individual large-cap stocks.
It suits investors who want technology sector exposure that is more diversified than a portfolio concentrated in a handful of mega-cap names.
It is a passive (index-tracking) ETF managed by First Trust.
How Does the First Trust NASDAQ-100 Technology Sector Index Fund Invest?
| Item | Details |
|---|---|
| Tracking index | NASDAQ-100 Technology Sector Index |
| Management style | Passive (tracks an equal-weighted index) |
| Rebalancing frequency | Quarterly |
| Dividend frequency | Quarterly |
| Expense ratio | 0.55% |
The fund holds the companies classified in the technology sector among Nasdaq 100 Index constituents on an equal-weighted basis, which evens out the influence of each individual stock. Unlike similar market-cap-weighted ETFs, it has lower concentration in large caps, so the weighting of small and mid-sized companies within the sector is relatively higher.
- Equal-weighted structure reduces dependence on a few large-cap stocks
- Refines the Nasdaq 100 universe to extract only the technology sector
First Trust NASDAQ-100 Technology Sector Index Fund Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $4.4B, and the expense ratio is an annual 0.55%.
Market-cap-weighted ETFs such as VGT and XLK shown in the table carry heavy large-cap weightings, while QTEC itself has an equal-weighted structure and therefore offers relatively more diversified exposure.
First Trust NASDAQ-100 Technology Sector Index Fund Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe fund tends to move in a direction similar to the technology sector as a whole. Because of its equal-weighted structure, it tends to react more sensitively to the overall temperature of the sector than to the earnings of any particular large-cap stock.
Fund flows fluctuate depending on whether the technology sector is in a rally or a correction, and interest tends to concentrate in periods when sentiment toward growth stocks is strong. Its asset base is relatively small compared with similar market-cap-weighted ETFs.
First Trust NASDAQ-100 Technology Sector Index Fund Pros and Cons
The equal-weighted structure delivers diversification benefits, but fees are somewhat higher than those of market-cap-weighted funds, and sector concentration risk remains.
💪 Key Strengths
⚠️ Points to Watch
First Trust NASDAQ-100 Technology Sector Index Fund: Alternative ETFs and Related Products
Market-cap-weighted large tech ETFs such as VGT, XLK, and FTEC shown in the table carry heavy large-cap weightings, and SOXX and IYW also provide similar technology sector exposure. In addition, QQQE, which holds the entire Nasdaq 100 on an equal-weighted basis, SMH, which focuses on semiconductors, IGV, which focuses on the software sector, SKYY, which follows the cloud computing theme, and XNTK, which centers on large tech stocks, can also be considered as related alternatives.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VGT | Vanguard Information Technology ETF | $120.97 | +1.5% | $147.5B | 0.09% | 0.39% | +25.0% |
 XLK | State Street Technology Select Sector SPDR ETF | $186.32 | +1.7% | $121.0B | 0.08% | 0.45% | +26.9% |
 SOXX | iShares Semiconductor ETF | $492.25 | +2.9% | $45.1B | 0.33% | 0.25% | +66.4% |
 IYW | iShares U.S. Technology ETF | $252.88 | +1.2% | $24.3B | 0.37% | 0.1% | +24.5% |
 FTEC | Fidelity MSCI Information Technology Index ETF | $288.61 | +1.5% | $21.1B | 0.08% | 0.38% | +25.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| AMAT | Applied Materials Inc | 0.03% | $387.59 | +2.7% | $307.6B | 33.4 | 0.5% |
| KLAC | KLA Corp | 0.03% | $149.21 | +2.5% | $194.7B | 40.7 | 0.62% |
| MRVL | Marvell Technology Inc | 0.06% | $233.78 | +2.3% | $205.0B | 77.0 | 0.1% |
| ALAB | Astera Labs Inc | 0.03% | $259.51 | +0.9% | $45.0B | 127.8 | - |
| LRCX | Lam Research Corp | 0.03% | $237.37 | +3.2% | $297.0B | 35.3 | 0.55% |
| SNDK | Sandisk Corp | 0.03% | $1255.77 | +1.4% | $181.5B | 17.2 | - |
| TER | Teradyne Inc | 0.03% | $309.19 | +0.1% | $48.3B | 42.4 | 0.17% |
| ARM | Arm Holdings Plc ADR | 0.03% | $223.35 | +6.2% | $238.5B | 229.1 | - |
| ASML | ASML Holding NV | 0.03% | $1590.34 | +1.2% | $612.9B | 39.2 | 0.65% |
First Trust NASDAQ-100 Technology Sector Index Fund Investor Checkpoints
Here are the points to check before investing in QTEC. You should review the benefits of the equal-weighted structure, sector concentration risk, and the differences in fees and liquidity compared with similar market-cap-weighted ETFs.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense ratio | Compare the fee level with similar market-cap-weighted ETFs | Somewhat higher |
| ⚖️ Weighting method | Understand the impact of rebalancing under the equal-weighted structure | Quarterly rebalancing applied |
| 📊 Sector concentration | Check volatility during technology sector corrections | Sector concentration maintained |
| 💧 Liquidity | Check trading volume compared with large tech ETFs | Relatively small |
During technology sector corrections, even an equal-weighted fund can come under the same downward pressure as the sector as a whole. Its relatively lower liquidity compared with large tech ETFs should also be taken into account.
If you want a diversified approach to the Nasdaq 100 technology sector, this product can be an alternative, while market-cap-weighted ETFs such as VGT and XLK may be more suitable if you want efficient exposure centered on large-cap stocks.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of July 2, 2026.
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