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QTEC - ETF AI Analysis

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QTEC

First Trust NASDAQ-100 Technology Sector Index Fund (QTEC)

Rating:72Outperform
Price Target:
QTEC, the First Trust NASDAQ-100 Technology Sector Index Fund, has a solid overall rating driven largely by high-quality technology leaders like ASML, Lam Research, and KLA, which benefit from strong financial performance, positive earnings outlooks, and strategic positioning in advanced chip and AI-related technologies. These strengths are partly offset by weaker names like SanDisk, where profitability and valuation concerns weigh on results, and by broader risks such as high valuations and regulatory or export-control pressures in key markets like China, which can affect several of the fund’s core holdings.
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered strong gains so far this year, showing solid momentum for investors.
Leading Technology Holdings
Several of the largest positions, especially in semiconductor and cybersecurity companies, have shown strong performance and help drive the fund’s returns.
Focused Yet Multi-Sector Exposure
While the fund is tilted toward technology, it also includes exposure to communication services, consumer cyclical, and industrial names, adding some diversification within growth-oriented areas.
Negative Factors
High Technology Concentration
With most of the portfolio in technology stocks, the fund is heavily exposed to swings in the tech sector.
U.S.-Only Geographic Exposure
Almost all holdings are in U.S. companies, so investors get little benefit from international diversification.
Moderately High Expense Ratio
The fund’s ongoing fee is on the higher side for an ETF, which can slightly reduce long-term returns compared with lower-cost options.

QTEC vs. SPDR S&P 500 ETF (SPY)

QTEC Summary

QTEC is an exchange-traded fund that follows the NASDAQ-100 Technology Sector Index, focusing mainly on U.S. technology companies. It holds a mix of well-known names like Apple and AMD, along with other firms in software, hardware, and chips. Someone might invest in QTEC if they want growth potential from a broad group of tech-focused businesses instead of picking individual stocks. However, because it is heavily concentrated in technology, its price can rise and fall sharply when tech stocks or the overall stock market go through big swings.
How much will it cost me?The expense ratio for QTEC is 0.55%, which means you’ll pay $5.50 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is passively managed but focuses on a specific sector, which often involves more specialized research and management.
What would affect this ETF?QTEC’s focus on U.S. technology companies positions it to benefit from ongoing innovation in semiconductors, software, and hardware, as well as increased demand for digital solutions. However, it could face challenges from rising interest rates, which often impact growth-focused sectors like technology, and potential regulatory scrutiny on large tech firms. Global economic conditions and shifts in consumer spending could also influence the ETF’s performance.

QTEC Top 10 Holdings

QTEC is riding a powerful wave in U.S. tech, with chip makers like AMD and Applied Materials doing much of the heavy lifting as semiconductor demand stays hot. ASML and KLA add more fuel to that theme, keeping the fund firmly anchored in the chip and equipment cycle. Cybersecurity names Palo Alto Networks and Fortinet are also rising, giving the portfolio a defensive edge. On the flip side, DoorDash and Thomson Reuters are lagging, acting as small speed bumps rather than roadblocks in an otherwise strongly tech-focused, North America-heavy story.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
DoorDash2.91%$134.27M$85.47B-22.29%
76
Outperform
Palo Alto Networks2.85%$131.46M$270.44B103.00%
73
Outperform
Roper Technologies2.78%$128.64M$39.56B-28.16%
71
Outperform
Fortinet2.73%$126.19M$118.82B65.61%
71
Outperform
Thomson Reuters2.71%$125.29MC$60.03B-50.92%
69
Neutral
Applied Materials2.66%$122.84M$403.07B183.45%
77
Outperform
Workday2.61%$120.43M$39.60B-26.68%
73
Outperform
CrowdStrike Holdings2.56%$118.23M$194.34B78.11%
67
Neutral
Datadog2.55%$118.00M$95.39B96.65%
69
Neutral
Microsoft2.50%$115.53M$3.45T-8.96%
79
Outperform

QTEC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
314.30
Positive
100DMA
282.04
Positive
200DMA
257.20
Positive
Market Momentum
MACD
-2.90
Negative
RSI
58.05
Neutral
STOCH
75.68
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For QTEC, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 305.45, equal to the 50-day MA of 314.30, and equal to the 200-day MA of 257.20, indicating a bullish trend. The MACD of -2.90 indicates Negative momentum. The RSI at 58.05 is Neutral, neither overbought nor oversold. The STOCH value of 75.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QTEC.

QTEC Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$4.54B0.55%
72
Outperform
$5.47B0.40%
71
Outperform
$2.79B0.60%
67
Neutral
$2.69B0.35%
63
Neutral
$2.54B0.60%
71
Outperform
$2.07B0.35%
74
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
QTEC
First Trust NASDAQ-100 Technology Sector Index Fund
319.86
109.46
52.02%
RSPT
Invesco S&P 500 Equal Weight Technology ETF
SKYY
First Trust Cloud Computing ETF
XSD
SPDR S&P Semiconductor ETF
FXL
First Trust Technology AlphaDEX Fund
XNTK
Spdr Nyse Technology Etf
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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