The First Trust NASDAQ-100 Technology Sector Index Fund (QTEC) is an exchange-traded fund designed to track the performance of technology companies within the Nasdaq-100 Index. The ETF is managed by First Trust Advisors and trades under the ticker QTEC on the Nasdaq.

Classified as a sector equity ETF, the fund invests exclusively in information technology companies that are constituents of the Nasdaq-100. Unlike market-cap-weighted ETFs, its strategy assigns an equal weight to each holding, reducing concentration in the largest companies.

The ETF follows a passive management approach and seeks to replicate the performance of the NASDAQ-100 Technology Sector Index, a benchmark composed of the technology companies within the Nasdaq-100 using an equal-weight methodology.

Diversification and sector exposure

QTEC provides exposure primarily associated with:

• Information technology.

• Software.

• Semiconductors.

• Hardware.

• Technology equipment.

• IT services.

• Cloud computing.

• U.S. equity market.

The portfolio consists of large-cap technology companies listed on the Nasdaq, with a more balanced allocation across holdings because of its equal-weight methodology. The ETF's performance reflects the U.S. technology sector while offering lower concentration in mega-cap companies than traditional market-cap-weighted technology ETFs.

Structure and costs

QTEC shares trade on the secondary market on the NASDAQ during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF's market price with its net asset value (NAV).

The fund is periodically rebalanced to maintain its equal-weight allocation methodology. The ETF charges a management fee as outlined in its prospectus and does not apply a performance fee.

History and evolution of the ETF

The First Trust NASDAQ-100 Technology Sector Index Fund was launched in 2006 to provide investors with concentrated exposure to the technology segment of the Nasdaq-100 through an equal-weight strategy.

Since inception, the fund has tracked the growth of the technology industry, reflecting the expansion of software, semiconductors, cloud computing, and digital infrastructure.

In recent years, advances in artificial intelligence, the digital transformation of the economy, growing demand for computing power, and continued innovation in hardware and software have supported the performance of the companies represented in the ETF's portfolio.

Additional Information

First Trust NASDAQ-100 Technology Sector Index Fund (United States) is an exchange-traded fund (ETF), with assets under management totaling $4.54 billion.

Over the past 12 months, First Trust NASDAQ-100 Technology Sector Index Fund recorded a return of 41.88%, with its price trading between $207.03 and $335.74 during the same period.

The ETF is traded under the ticker QTEC.