ETF Broaden exposure to the Nasdaq-100

As stock performance is starting to broaden across the market, now may be the time for an equal-weight approach to the Nasdaq-100 Index, which includes companies at the forefront of innovation across a diverse range of sectors.

QEW, Invesco QQQ Equal Weight ETF

The latest addition to our suite of Nasdaq-focused ETFs, the Invesco QQQ Equal Weight ETF, ticker symbol QEW, is one way to do that.

Wider exposure across the Nasdaq-100

QEW’s equal-weight approach offers different Nasdaq-100 exposure and risk profiles. Because the Nasdaq-100 is market-cap weighted, it gives the largest companies the highest weights. QEW gives each company in the index a 1% weight, which provides wider exposure across the Nasdaq-100. This can be seen in QEW’s sector exposure. For instance, technology and consumer discretionary have lower weights than in the Nasdaq-100, while health care and Industrials have higher weights.

Mitigate concentration risk

QEW tilts exposures towards the smaller Nasdaq-100 companies, which can increase participation in broader innovation themes. It offers diversification beyond the largest companies and can help mitigate the concentration risk of the market-cap-weighted index.

QEW’s quarterly rebalance systematically resets weights by trimming outperformers and adding to underperformers, helping maintain the strategy’s profile through changing market conditions.

Growth potential from innovative companies

So who should consider QEW?

Investors who want growth potential from the innovative companies in the Nasdaq-100, but want more exposure to the smaller companies in the index, and broader reach into innovative themes.

Additional ETF resources

• Innovation Suite 
• Smart beta ETFs