A strong management team and sound investment process underpin Direxion NASDAQ-100® Equal Wtd ETF's Morningstar Medalist Rating of Gold. The portfolio maintains a cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The team managing the passive strategy drives the strategy's High People Pillar rating. The strategy's effective investment approach earns a High Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a substantial overweight position in liquidity exposure and has an overweight in volatility exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The strategy is part of a first-rate parent that has overall reasonable fees and high portfolio management retention. These attributes support its Above Average Parent Pillar rating, the result of a recent downgrade from High.

Analyst Rating

Sirius XM Hlds

Amgen

GE HealthCare Technologies Inc

Seagen

Synopsys

Costco

Advanced Micro Devices

NXP Semiconductors

CrowdStrike

KLA-Tencor

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. Direxion NASDAQ-100® Equal Wtd Shares earns a High Process Pillar rating. 

The most important driver of the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Impressive risk-adjusted performance also bolsters the process. This can be seen in the fund's five-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. 

 This strategy leans toward smaller, more undervalued companies compared with its average peer in the Large Growth Morningstar Category. Examining additional factor exposure, the fund has held stocks with higher trading volumes compared to Morningstar Category Peers in the past few years. More-liquid assets contribute to more-flexible exit strategies without price changes and tend to be a ballast during market selloffs. For example, if the portfolio faces successive redemptions in a short period of time, it will be less likely to suffer from a significant loss. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy also has had an overweight bias to the volatility factor over these years, meaning it has owned companies that have a higher historical standard deviation of returns. This orientation tends to pay off most prominently when markets are hot. Compared with category peers, the strategy also had more exposure to the Volatility factor in the most recent month. Additionally, this strategy's portfolio has held more stocks with high dividend or buyback yields than peers over recent years. Higher-yield stocks can provide steady income, but also have their risks. Dividend payers may cut payouts, for instance, if their earnings fall. In this month, the strategy also had more exposure to the Yield factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in industrials and utilities relative to the category average by 4.1 and 3.4 percentage points, respectively. The sectors with low exposure compared to category peers are financial services and technology, with financial services underweighting the average portfolio by 7.8 percentage points of assets and technology similar to the average. The portfolio is composed of 102 holdings and is less top-heavy than peers. Specifically, 11.8% of the fund’s assets are concentrated within the top 10 fund holdings, compared to the category’s 52.5% average. And in closing, in terms of portfolio turnover, this fund trades less frequently than the category’s average, potentially limiting costs to investors.

High

Process

Direxion’s team receives a High People Pillar rating. The most notable contributor to the rating is its parent firm's excellent long-term risk-adjusted performance, as shown by the firm's average ten-year Morningstar Rating of 4.0 stars. The firm's five-year retention rate of 100% also influences the rating. Low costs, with fees that rank in its category's cheapest quintile, support the People rating as well. A higher expense ratio reduces net returns, so low costs give this team an advantage.

People

Direxion remains well-positioned in an increasingly competitive industry, earning it an Above Average Parent Pillar rating. One area of strength is the firm’s favorable fees for open-end and exchange-traded funds, demonstrating a firm-wide commitment to minimizing costs and maximizing investors’ returns. Fees for the firm's funds, on average, are within the lowest quintile of category peers. Portfolio manager turnover at Direxion has been low over the past five years, building confidence that the firm is working to establish a stable and engaging culture. Average tenure of nine years among the longest-tenured managers at Direxion is on par with peer firms. In isolation, seasoned teams tend to have more experience to draw upon should they need to weather turbulent market conditions.

Above Average

Parent

Direxion NASDAQ-100 Equal Weighted Index Shares

QQQE tracks an equal-weighted version of the NASDAQ 100.

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On this episode of ETF Prime, host Nate Geraci speaks with a pair of individuals discussing several different ETF-related topics. His guests include VettaFi's Lara Crigger, who goes in-depth on a plethora of subjects including spot Ethereum ETF filings, fixed income ETF flows, and more.

ETF Prime: Crigger on Spot Ethereum ETF Filings, Plus Franklin Templeton's Approach

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The Invesco QQQ (QQQ), and its lower-cost sibling Invesco NASDAQ 100 ETF (QQQM), soared 40% year-to-date as of September 7, more than double that of the broad S&P 500 Index based ETFs in 2023.

NASDAQ 100 ETF Exposure Comes in Many Forms

Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE), a passively managed exchange traded fund launched on 03/21/2012.

Should Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) Be on Your Investing Radar?

Making its debut on 03/21/2012, smart beta exchange traded fund Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) provides investors broad exposure to the Style Box - Large Cap Growth category of the market.

Is Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) a Strong ETF Right Now?

The equal weighted Nasdaq 100 has underperformed the capitalisation weighted index over recent years, but this has reflected the former's weak fundamental performance. With a PE ratio of 54x, the median Nasdaq 100 stock is trading at higher valuations than the Nasdaq 100 itself after a 40% drop in earnings. The Direxion Nasdaq-100 Equal Weighted Index Shares ETF faces the risk of negative free cash flows in a recession and may continue its long-term underperformance versus the Nasdaq 100.

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I suggest a trade strategy using the equal-weighted Nasdaq ETF and Energy ETF, which complement each other's weaknesses and could lead to outperformance over the next three months. The strategy is contingent on avoiding a deep recession; the Energy sector could collapse from attractive valuations if a recession occurs. Risks include monetary policy lag, debt-strapped companies, inflation, Fed policy error, geopolitical tensions, and OPEC. I believe the combination of these two ETFs is greater than the sum of their parts, with indicators pointing to a bull market and potential economic expansion.

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The Nasdaq Composite Index is set to wrap up the best first half in 40 years, climbing 29%. Investors looking to ride the Nasdaq bulls could consider these ETFs.

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The historical spread between tech and small caps, a rebounding banking sector, and strong seasonal trends favor out performance in small-cap stocks over the next few weeks.

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VettaFi's vice chairman Tom Lydon discussed the Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and analysis, visit the Leveraged & Inverse Channel.

ETF of the Week: Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE)

It's tough out there for an equal-weighted ETF. For many reasons, capitalization-weighted indexes continue to dominate the performance tables. This is particularly relevant for any ETF that is in direct competition with QQQ, the cap-weighted Nasdaq 100 ETF.

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This week, the VettaFi Voices gather around the water cooler and talk smart beta and equal weight ETFs.

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QQQE is the equal-weighted version of QQQ, the most popular ETF tracking the growth-heavy Nasdaq-100 Index. QQQE's expense ratio is 0.35% and the ETF has $507 million in assets. QQQE's growth potential now exceeds QQQ's and trades at a cheaper 30x forward earnings, with profitability hardly impacted.

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Is Direxion NASDAQ100 Equal Weighted Index Shares (QQQE) a Strong ETF Right Now?

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Most Nasdaq-100 ETFs are significantly overweight mega-cap tech stocks. QQQE is an equal-weighted Nasdaq-100 ETF and provides investors with a more balanced, diversified exposure to the said index.

QQQE: Equal-Weighted Nasdaq-100 ETF, Diversified Holdings, Strong Performance Track Record

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Look Inside ETFs as Tech Earnings Season Kicks Off

QQQE is the Direxion NASDAQ-100 Equal Weighted Index Shares ETF launched by Direxion Investments. The fund is managed by Rafferty Asset Management. QQEW is the First Trust NASDAQ-100 Equal Weighted Index Fund launched and managed by First Trust Advisors.

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The cap-weighted version of the S&P 500 has its bouts – some recent with elevated concentration. The same goes for the Nasdaq-100 Index (NDX) because that benchmark, as its name implies, is home to a smaller number of components.

Time Could Be Right for This Equal-Weight ETF

Citigroup

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These high-quality companies are stocks to buy when they plunge during a crash and get an important chance to build significant wealth. The post 7 Stocks To Buy After The Market Crash appeared first on InvestorPlace.

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With its hefty allocations to communication services and technology stocks, the Nasdaq-100 Index (NDX) is a favored destination for many growth investors. The cap-weighted version of that index allocates over two-thirds of its weight to tech and communication services stocks and is top-heavy with its top five holdings combining for about 38% of its weight.

Equal-Weight Still Holds Merit for Growth Investors

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In the decade-plus since the post-global financial crisis bull market rally began, the DJIA has been crushed by top U.S. index benchmark peers the S&P 500 and Nasdaq 100. The fact the Dow is "price weighted" has meant high-flying growth stocks have been left out of the index relative to value-oriented names in underperforming sectors like healthcare and financials.

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Forget the S&P 500 and even the Dow Jones Industrial Average. The big name in big-name indices – at least in the past few years – is the Nasdaq-100.

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The tech-heavy Nasdaq index posted its best third quarter in 10 years this year.

News for Direxion NASDAQ-100 Equal Weighted Index Shares ETF (QQQE)