(QQEW) First Trust NASDAQ-100 - Ratings and Ratios

The First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW) is an ETF that tracks the equal-weighted version of the NASDAQ-100 Index, comprising 100 of the largest non-financial U.S. and international companies listed on Nasdaq. By investing at least 90% of its net assets in the securities that make up the index, the fund provides broad exposure to the growth-oriented segment of the market.

The equal-weighted approach of QQEW distinguishes it from its market-capitalization-weighted counterparts, potentially reducing the dominance of a few large-cap stocks and increasing the influence of smaller constituents within the index. This methodology can lead to a more diversified portfolio and may mitigate the risk associated with any single stocks performance.

From a technical analysis perspective, QQEWs recent price action indicates a bullish trend, with the last price of $133.90 exceeding both its 20-day ($131.73) and 50-day ($124.30) simple moving averages. The 200-day SMA ($126.29) is also below the current price, further supporting the positive momentum. The Average True Range (ATR) of 1.70, or 1.27%, suggests moderate volatility.

Given the current technical and fundamental landscape, a potential forecast for QQEW could involve continued upward momentum, driven by the strong performance of its constituent stocks. If the NASDAQ-100 Index continues to be supported by the growth prospects of its underlying companies, QQEW may see its price appreciate further, potentially testing the 52-week high of $135.94. Conversely, a decline below the 20-day SMA could signal a short-term correction. With an AUM of $1.837 billion, the fund has sufficient liquidity to support its operations and investor activities.

Investors considering QQEW should be aware that the funds performance is closely tied to the overall health of the technology and growth sectors, which can be subject to significant volatility. Nonetheless, the diversification inherent in the equal-weighted index methodology may help mitigate some of this risk, making QQEW a potentially attractive option for those seeking broad exposure to the NASDAQ-100 Index.