QTEC - ETF AI Analysis

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

Rating:73Outperform

Price Target:―

QTEC, the First Trust NASDAQ-100 Technology Sector Index Fund, has a solid overall rating driven largely by high-quality chip and semiconductor equipment leaders like ASML and Lam Research, which benefit from strong financial performance, positive earnings commentary, and strategic positioning in AI and advanced technologies. Other key holdings such as Micron and Texas Instruments further support the fund’s quality through robust revenue growth and shareholder-friendly policies, though some names like Microchip and Intel face profitability and valuation challenges that modestly weigh on the fund. The main risk is the fund’s heavy concentration in technology and semiconductor-related companies, which can increase sensitivity to sector downturns, regulatory issues, and shifts in AI or chip demand.

Positive Factors

Strong Semiconductor Holdings

Many of the largest positions in chip-related companies have shown strong gains this year, helping support the fund’s overall results.

Focused Tech Exposure

The ETF is heavily tilted toward technology and related industries, giving investors targeted access to a key growth area of the market.

Meaningful Asset Base

The fund manages a sizable pool of assets, which can help with trading liquidity and overall fund stability for investors.

Negative Factors

High Sector Concentration

With most of its assets in technology stocks, the ETF is vulnerable to downturns in the tech sector.

Almost Entirely U.S.-Focused

The portfolio is invested almost entirely in U.S. companies, offering very little geographic diversification.

Above-Average Expense Ratio

The fund’s expense ratio is relatively high for a passive ETF, which can modestly reduce investors’ net returns over time.

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

AUM3.00B

RegionNorth America

Expense Ratio0.55%

Beta1.55

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. Volume272,995

30 Day Avg. Volume194,022

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

304.27

Price Target Upside― Downside

Rating ConsensusStrong Buy

Number of Analyst Covering45

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

QTEC Summary

QTEC is an exchange-traded fund (ETF) that follows the NASDAQ-100 Technology Sector Index, focusing mainly on U.S. technology companies. It holds well-known names like Intel and Advanced Micro Devices (AMD), along with other firms in software, hardware, and semiconductors. Someone might invest in QTEC if they want growth potential from leading tech businesses and a simple way to spread that bet across many companies instead of picking individual stocks. A key risk is that it is heavily concentrated in technology, so its price can rise or fall sharply with the tech sector.

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 semiconductor wave, with names like Micron, Western Digital, Lam Research, ASML, and Applied Materials doing much of the heavy lifting as chip demand tied to AI keeps these stocks rising. Intel has also perked up recently, adding extra fuel after a slower stretch. AMD is more mixed, no longer the star of the show but still contributing. With nearly all of its top holdings in U.S.-listed chip and chip-equipment makers, this ETF is heavily concentrated in one tech theme and one geography: American semis.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
MU	Micron	3.66%	$109.22M	$492.75B	362.65%	79 Outperform
WDC	Western Digital	3.32%	$99.00M	$91.62B	354.85%	77 Outperform
STX	Seagate Tech	3.25%	$96.91M	$94.41B	370.27%	68 Neutral
LRCX	Lam Research	3.07%	$91.46M	$296.58B	187.95%	77 Outperform
ASML	ASML Holding	3.04%	$90.55M	$553.28B	90.85%	81 Outperform
INTC	Intel	2.95%	$87.94M	$243.81B	155.31%	64 Neutral
AMAT	Applied Materials	2.85%	$84.96M	$260.40B	78.47%	77 Outperform
TXN	Texas Instruments	2.84%	$84.67M	$204.45B	24.73%	78 Outperform
MPWR	Monolithic Power	2.79%	$83.05M	$56.21B	77.49%	75 Outperform
MCHP	Microchip	2.68%	$79.80M	$42.20B	45.74%	54 Neutral

QTEC Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

234.82

Negative

100DMA

233.19

Negative

200DMA

218.65

Positive

Market Momentum

MACD

-0.45

Positive

RSI

36.77

Neutral

STOCH

20.85

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For QTEC, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 237.89, equal to the 50-day MA of 234.82, and equal to the 200-day MA of 218.65, indicating a neutral trend. The MACD of -0.45 indicates Positive momentum. The RSI at 36.77 is Neutral, neither overbought nor oversold. The STOCH value of 20.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QTEC.

QTEC Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
QTEC	―	―	$3.00B	0.55%	―
RSPT	―	―	$4.08B	0.40%	―
SKYY	―	―	$2.64B	0.60%	―
XSD	―	―	$1.77B	0.35%	―
XNTK	―	―	$1.65B	0.35%	―
FXL	―	―	$1.41B	0.62%	―

Performance Comparison

QTEC

First Trust NASDAQ-100 Technology Sector Index Fund

224.72

22.77

11.28%

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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