QQQE - ETF AI Analysis

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Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE)

Rating:72Outperform

Price Target:―

The ETF QQQE, which tracks the NASDAQ-100 Equal Weighted Index, has a solid overall rating, reflecting a balanced mix of strong performers and some weaker holdings. Top contributors like Micron (MU) and Nvidia (NVDA) drive the fund's rating with their robust financial performance and strategic focus on AI and data center technologies, positioning them for long-term growth despite valuation concerns. However, weaker holdings like CoStar Group (CSGP), with declining profitability and bearish momentum, slightly weigh down the overall rating. The fund's main risk lies in its concentration on technology-focused companies, which could be vulnerable to sector-specific challenges or valuation pressures.

Positive Factors

Strong Top Holdings

Several top holdings, such as Micron and Lam Research, have delivered strong year-to-date performance, supporting the ETF's overall returns.

Sector Diversification

The ETF is spread across multiple sectors, including technology, consumer cyclical, and health care, reducing reliance on any single industry.

Reasonable Expense Ratio

The ETF has a relatively low expense ratio, making it cost-effective compared to many actively managed funds.

Negative Factors

Overweight in Technology

With over 40% of the portfolio in technology, the ETF is heavily exposed to potential volatility in this sector.

Underperforming Holdings

Some holdings, like Trade Desk and Marvell, have shown weak year-to-date performance, which could drag on overall returns.

Limited Geographic Exposure

The ETF is highly concentrated in U.S. companies, offering minimal diversification across international markets.

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

AUM1.23B

RegionNorth America

Expense Ratio0.35%

Beta1.09

IssuerDirexion

Inception DateMar 21, 2012

Dividend Yield0.51%

Asset ClassEquity

Index TrackedNASDAQ-100 Equally Weighted Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume127,064

30 Day Avg. Volume200,205

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

122.64

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering101

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

QQQE Summary

The Direxion NASDAQ-100 Equal Weighted Index Shares (Ticker: QQQE) is an ETF that gives investors exposure to the NASDAQ-100 Index but with a unique twist: it allocates equal weight to all 100 companies in the index. This means that every company, big or small, has the same impact on the fund’s performance, promoting diversification. It includes well-known companies like Intel and Advanced Micro Devices (AMD) and focuses on large-cap stocks across sectors like technology, healthcare, and consumer services. Investors might consider QQQE for balanced exposure to high-growth industries and reduced concentration in mega-cap tech stocks. However, since it tracks the NASDAQ-100, its performance can fluctuate with the overall market, especially if tech stocks face challenges.

How much will it cost me?The expense ratio for QQQE is 0.35%, which means you’ll pay $3.50 per year for every $1,000 invested. This is slightly higher than average because QQQE is an equal-weighted fund, which requires more active management compared to passively managed funds that track market-cap weighted indexes.

What would affect this ETF?QQQE’s exposure to technology and consumer sectors positions it to benefit from innovation and growth in these areas, especially as demand for tech products and services continues to rise. However, the fund could face challenges if interest rates increase, as higher borrowing costs can impact growth-focused companies, or if regulatory changes affect major tech firms. Its equal-weighted approach reduces concentration risk but may limit gains during periods when mega-cap stocks outperform.

QQQE Top 10 Holdings

The Direxion NASDAQ-100 Equal Weighted ETF (QQQE) is leaning heavily into technology, with names like Micron and Lam Research driving performance thanks to their strong positioning in AI and advanced chip technologies. However, AMD and Applied Materials are showing mixed momentum, with valuation concerns tempering their growth story. Outside of tech, Warner Bros. Discovery is steady but faces challenges in revenue growth, while Regeneron adds a healthcare boost with its innovation-driven strategy. With its equal-weighted approach, QQQE avoids over-reliance on mega-cap names, offering a balanced slice of U.S. large-cap sectors.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
MU	Micron	1.07%	$13.23M	$322.66B	219.17%	79 Outperform
WBD	Warner Bros	1.04%	$12.91M	$72.44B	175.24%	68 Neutral
NVDA	Nvidia	1.03%	$12.78M	$4.58T	34.79%	76 Outperform
PDD	PDD Holdings	1.03%	$12.71M	$157.93B	14.74%	70 Outperform
LRCX	Lam Research	1.02%	$12.63M	$222.73B	139.67%	77 Outperform
AVGO	Broadcom	1.02%	$12.62M	$1.66T	42.74%	76 Outperform
MRVL	Marvell	1.02%	$12.62M	$73.35B	-25.25%	76 Outperform
SNPS	Synopsys	1.02%	$12.58M	$91.02B	-4.05%	73 Outperform
CSGP	CoStar Group	1.02%	$12.58M	$28.35B	-8.50%	61 Neutral
KLAC	KLA	1.02%	$12.58M	$167.79B	96.90%	77 Outperform

QQQE Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

102.19

Positive

100DMA

100.73

Positive

200DMA

96.37

Positive

Market Momentum

MACD

0.48

Negative

RSI

57.25

Neutral

STOCH

67.42

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For QQQE, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 102.98, equal to the 50-day MA of 102.19, and equal to the 200-day MA of 96.37, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 57.25 is Neutral, neither overbought nor oversold. The STOCH value of 67.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QQQE.

QQQE Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
QQQE	―	―	$1.23B	0.35%	―
MGC	―	―	$9.88B	0.07%	―
PRF	―	―	$8.60B	0.34%	―
QYLD	―	―	$8.22B	0.61%	―
FTCS	―	―	$8.14B	0.52%	―
JQUA	―	―	$7.65B	0.12%	―

Performance Comparison

QQQE

Direxion NASDAQ-100 Equal Weighted Index Shares

103.77

12.98

14.30%

MGC

Vanguard Mega Cap ETF

―

PRF

Invesco FTSE RAFI US 1000 ETF

―

QYLD

Global X NASDAQ 100 Covered Call ETF

―

FTCS

First Trust Capital Strength ETF

―

JQUA

JPMorgan U.S. Quality Factor 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.

Disclaimer

This 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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