Should First Trust NASDAQ-100 Ex-Technology Sector ETF (QQXT) Be on Your Investing Radar?

The First Trust NASDAQ-100 Ex-Technology Sector ETF (QQXT), with $1.09 billion in assets, offers exposure to large-cap growth companies outside the technology sector, primarily in Industrials (20%), Healthcare, and Consumer Discretionary. QQXT, seeking to replicate the NASDAQ-100 Ex-Tech Sector Index, has returned approximately 3.67% YTD and 9.74% over the past year; however, its expense ratio of 0.60% is relatively high compared to alternatives like Vanguard Growth ETF (VUG) and Invesco QQQ (QQQ).

Analysis

The First Trust NASDAQ-100 Ex-Technology Sector ETF (QQXT) offers investors targeted exposure to the Large Cap Growth segment of the U.S. equity market by tracking an equal-weighted index of NASDAQ-100 companies, specifically excluding those classified in the technology sector. With assets over $1.09 billion, it is an average-sized ETF in its category, sponsored by First Trust Advisors and launched on February 8, 2007. The fund's portfolio is most heavily allocated to the Industrials sector (approximately 20%), with Healthcare and Consumer Discretionary also featuring prominently; top holdings include Netflix, Inc. (NFLX) at 2.13% of total assets, Tesla, Inc. (TSLA), and Copart, Inc. (CPRT), with the top ten holdings comprising about 20.04% of assets. QQXT has demonstrated a year-to-date return of approximately 3.67% and a one-year return of 9.74% (as of June 19, 2025), accompanied by a 12-month trailing dividend yield of 0.85%. The ETF presents a medium risk profile, indicated by a beta of 0.94 and a three-year trailing standard deviation of 16.47%. A significant consideration for investors is its annual operating expense ratio of 0.60%, which positions it as one of the more expensive products in the large-cap growth space, notably higher than considerably larger alternatives like the Vanguard Growth ETF (VUG) at 0.04% and the Invesco QQQ (QQQ) at 0.20%. Despite the higher costs, QQXT carries a Zacks ETF Rank of 3 (Hold), suggesting it is considered a reasonable option for investors specifically seeking its differentiated ex-technology exposure within the NASDAQ-100.

Key Decisions for Investors

• Investors seeking dedicated exposure to NASDAQ-100 companies while deliberately excluding the technology sector might find QQXT's strategy appealing for diversification into Industrials, Healthcare, and Consumer Discretionary.
• Carefully evaluate QQXT's 0.60% expense ratio, which is substantially higher than broad large-cap growth alternatives, against the perceived benefit of its specific ex-technology mandate and its current Zacks ETF Rank of 3 (Hold).