QTEC - ETF AI Analysis

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

Rating:73Outperform

Price Target:―

QTEC’s rating reflects a portfolio led by high-quality semiconductor and chip-equipment names like ASML and Micron, whose strong financial performance, positive earnings calls, and key roles in AI and advanced technologies provide a solid foundation for the fund. However, holdings such as Intel and PDD face valuation and profitability pressures, as well as competitive and regulatory challenges, which modestly weigh on the overall assessment. The main risk factor is the fund’s heavy exposure to technology and semiconductor-related businesses, which can be sensitive to export controls, China-related demand, and shifts in global tech spending.

Positive Factors

Strong Top Holdings

Several key holdings, such as AMD, Micron, and Lam Research, have shown strong year-to-date performance, driving the fund's returns.

Technology Focus

The ETF's heavy exposure to the technology sector positions it to benefit from growth in innovative industries.

Healthy Performance

The fund has delivered solid year-to-date and recent performance, indicating strong momentum.

Negative Factors

Sector Concentration

With over 87% of its assets in technology, the ETF is highly exposed to risks specific to this sector.

Limited Geographic Diversification

Nearly all of the fund's holdings are U.S.-based, leaving it vulnerable to domestic market fluctuations.

Moderate Expense Ratio

The ETF's expense ratio is higher than some low-cost alternatives, which could slightly reduce investor returns over time.

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

AUM3.02B

RegionNorth America

Expense Ratio0.55%

Beta1.56

IssuerFirst Trust

Inception DateApr 19, 2006

Dividend Yield0.02%

Asset ClassEquity

Index TrackedNASDAQ-100 Technology Sector Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume165,112

30 Day Avg. Volume148,932

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

290.35

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering45

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

QTEC Summary

The First Trust NASDAQ-100 Technology Sector Index Fund (QTEC) is an ETF that focuses on technology companies within the NASDAQ-100 Index. It includes well-known tech firms like Advanced Micro Devices (AMD) and Intel, along with other innovative companies in software, hardware, and semiconductors. Investors might consider QTEC for its potential to grow alongside the rapidly evolving tech industry and to diversify their portfolios with cutting-edge businesses. However, it’s important to note that QTEC is heavily dependent on the technology sector, meaning its performance can fluctuate significantly with changes in the tech market.

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 the wave of innovation, with tech heavyweights like Nvidia and Lam Research driving the fund’s performance thanks to their strategic focus on AI and advanced technologies. Apple remains steady, bolstered by its profitability and expansion into services, while Cognizant’s AI-driven growth adds a positive spark. However, Fortinet and Microchip are lagging, weighed down by bearish trends and operational challenges. With a clear concentration in U.S.-based technology stocks, this ETF is a bet on the future of digital transformation, though some names are struggling to keep pace.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
MU	Micron	2.76%	$81.91M	$388.40B	229.19%	79 Outperform
LRCX	Lam Research	2.61%	$77.70M	$252.41B	169.20%	77 Outperform
MCHP	Microchip	2.54%	$75.45M	$39.74B	33.23%	54 Neutral
ASML	ASML Holding	2.53%	$75.33M	$480.69B	61.61%	81 Outperform
INTC	Intel	2.50%	$74.36M	$204.92B	114.67%	64 Neutral
PDD	PDD Holdings	2.49%	$73.96M	$169.29B	28.43%	70 Outperform
SNPS	Synopsys	2.49%	$73.90M	$98.43B	4.46%	73 Outperform
AMAT	Applied Materials	2.46%	$73.16M	$223.32B	64.08%	77 Outperform
ADI	Analog Devices	2.44%	$72.60M	$146.48B	40.87%	78 Outperform
TXN	Texas Instruments	2.40%	$71.20M	$171.23B	-0.89%	78 Outperform

QTEC Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

233.04

Positive

100DMA

228.81

Positive

200DMA

212.35

Positive

Market Momentum

MACD

1.40

Negative

RSI

54.02

Neutral

STOCH

81.46

Negative

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 234.57, equal to the 50-day MA of 233.04, and equal to the 200-day MA of 212.35, indicating a bullish trend. The MACD of 1.40 indicates Negative momentum. The RSI at 54.02 is Neutral, neither overbought nor oversold. The STOCH value of 81.46 is Negative, 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
QTEC	―	―	$3.02B	0.55%	―
RSPT	―	―	$4.14B	0.40%	―
SKYY	―	―	$2.99B	0.60%	―
XSD	―	―	$1.74B	0.35%	―
XNTK	―	―	$1.57B	0.35%	―
FXL	―	―	$1.47B	0.62%	―

Performance Comparison

QTEC

First Trust NASDAQ-100 Technology Sector Index Fund

236.83

49.57

26.47%

RSPT

Invesco S&P 500 Equal Weight Technology ETF

―

SKYY

First Trust Cloud Computing ETF

―

XSD

SPDR S&P Semiconductor ETF

―

XNTK

Spdr Nyse Technology Etf

―

FXL

First Trust Technology AlphaDEX Fund

―

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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