At a glance
QTEC charges 0.55% a year, above the 0.27% average of the 8 funds most like it (the most expensive of 9). It has $4.99B in assets, the 8th largest of that group; it paid 0.01% of its price in distributions over the past 12 months, annual. Over the past year it returned +27.5% with distributions reinvested (S&P 500: +11.5%), 4th of those 9 funds; over three years it returned +30.9% a year. At its worst it fell 32.3% in the 2020 crash (S&P 500: 33.7%) and 42.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 14 months after the lows. Its ten largest positions make up 28.7% of the fund, out of 48 in all.
The short version
First Trust NASDAQ-100 Technology Sector Index Fund (QTEC) is an ETF that tracks the Nasdaq-100 Technology Sector Index. That index holds the technology companies in the Nasdaq-100 and gives each one the same weight. Equal weighting spreads money more evenly than funds tilted toward the biggest names. The cost is higher: at 0.55% a year, it was the most expensive of nine similar funds compared, against a 0.27% average.
Price history
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QTEC +27.5% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| QTEC official prospectus, to Dec 31, 2025 | — | +22.44% | — | +10.83% | +18.95% | +13.75% |
| QTEC price data to Oct 27, 2026 | +35.0% | +27.5% | +30.9% | +13.4% | +20.3% | +15.0% |
- Over the year to Oct 27, 2026, QTEC returned +27.5%, 4th of 9 among similar funds.
- Its 5-year annualized return was +13.4% and its 10-year +20.3%.
- In the 2020 COVID crash it fell 32.3% and regained its old high 3.5 months after the low.
- Its worst full calendar year was 2008 (-45.1%); its best was 2009 (+79.7%).
- The deepest fall in its price history was 58.9% (Oct 18, 2007 to Nov 20, 2008), recovered by Oct 27, 2010.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +35.0% | — |
| 2025 | +22.3% | +22.44% |
| 2024 | +7.3% | +7.12% |
| 2023 | +67.0% | +66.89% |
| 2022 | -39.8% | -39.81% |
| 2021 | +26.9% | +26.94% |
| 2020 | +38.7% | +38.82% |
| 2019 | +48.2% | +48.36% |
| 2018 | -4.6% | -4.70% |
| 2017 | +37.8% | +37.86% |
| 2016 | +25.4% | +25.27% |
| 2015 | -1.5% | — |
| 2014 | +25.1% | — |
| 2013 | +38.1% | — |
| 2012 | +8.0% | — |
| 2011 | -5.9% | — |
| 2010 | +21.7% | — |
| 2009 | +79.7% | — |
| 2008 | -45.1% | — |
| 2007 | +7.5% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 55.6% over that stretch · deepest drop along the way 58.9%, back to its old high 23.2 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 31.5% over that stretch · deepest drop along the way 32.3%, back to its old high 3.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 42.8% over that stretch · deepest drop along the way 42.8%, back to its old high 14.3 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.0300 | |
| 2025 | $0.0100 | -75.0% |
| 2024 | $0.0400 | -83.3% |
| 2023 | $0.2400 | +50.0% |
| 2022 | $0.1600 | +433.3% |
| 2021 | $0.0300 | -95.1% |
| 2020 | $0.6100 | -10.3% |
| 2019 | $0.6800 | +9.7% |
| 2018 | $0.6200 | +8.8% |
| 2017 | $0.5700 | -16.2% |
| 2016 | $0.6800 | +58.1% |
| 2015 | $0.4300 | -18.9% |
| 2014 | $0.5300 | +112.0% |
| 2013 | $0.2500 | +19.0% |
| 2012 | $0.2100 | +162.5% |
| 2011 | $0.0800 | -20.0% |
| 2010 | $0.1000 | +900.0% |
| 2009 | $0.0100 |
What's inside
As of Jun 30, 2026, the fund held 48 securities; the ten largest made up 28.69% of assets.
| Holding | Weight | |
|---|---|---|
| APPLIED MATERIALS INC | 3.37% | |
| KLA CORP | 3.29% | |
| MARVELL TECHNOLOGY INC | 3.04% | |
| ASTERA LABS INC | 2.95% | |
| LAM RESEARCH CORP | 2.85% | |
| SANDISK CORP | 2.81% | |
| TERADYNE INC | 2.71% | |
| ASML HOLDING NV | 2.59% | |
| INTEL CORP | 2.55% | |
| PALO ALTO NETWORKS INC | 2.54% | |
| WESTERN DIGITAL CORP | 2.52% | |
| NEBIUS GROUP NV | 2.50% | |
| MICRON TECHNOLOGY INC | 2.49% | |
| DOORDASH INC | 2.43% | |
| ADVANCED MICRO DEVICES INC | 2.36% |
By country
United States 83.43%Netherlands 6.92%Canada 3.99%Ireland 2.3%United Kingdom 2.1%By asset type
Stocks 99.99%RA 0.64%By sector
Sectors of the companies held, for the 69.9% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $898.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +23.43%, +19.74%, +4.92%.
How it works
QTEC tries to match the Nasdaq-100 Technology Sector Index, which Nasdaq, Inc. creates and maintains. The fund normally puts at least 90% of its net assets in the stocks in that index. The index starts with the Nasdaq-100, which holds 100 of the largest non-financial companies listed on Nasdaq. Those companies are chosen by market capitalization (the total value of a company's shares), with buffers that limit how often members change. The index then takes every Nasdaq-100 stock classified as technology under the Industry Classification Benchmark. As of March 31, 2026, it held 45 securities.
Each stock gets the same weight, whatever the company's size. So no single company dominates. As of June 30, 2026, the largest positions were Applied Materials at 3.4%, KLA at 3.3% and Marvell Technology at 3.0%. The top 10 made up 28.7% of the fund. Chip and chip-equipment makers fill much of the list. Some holdings are foreign companies, such as ASML from the Netherlands, held through depositary receipts (US-traded shares that stand for foreign stock). US companies made up about 83% of the fund.
The index is rebalanced back to equal weights every quarter and reconstituted (its member list rebuilt) once a year. The fund trades shortly after each change is announced. Rebalancing means trimming stocks that have risen and adding to ones that have lagged, which helps explain the fund's 38% portfolio turnover. The fund does not use leverage, options or swaps.
What it really costs
- QTEC charges 0.55% a year, versus an average of 0.27% for the similar funds below (9th of 9, cheapest first).
- Of that, 0.4% is the management fee; the rest covers other fund expenses.
In a retirement portfolio
QTEC holds a single sector heavy in semiconductor stocks and has lost more than half its value at its worst, so it fits as a small add-on rather than a foundation.
QTEC could add focused exposure to technology stocks, especially chipmakers, without leaning on a handful of giants the way funds weighted by company size do. The price is large swings. It fell 58.9% from October 2007 to November 2008 and took about 23 months from that low to recover. 2008 was also its worst calendar year, at -45.1%. It dropped 32.3% in the 2020 COVID crash and recovered in about 3.5 months. In the 2022 bear market it fell 42.8% and needed about 14 months to recover. Someone selling shares to cover spending in a year like that would lock in losses. The yield was about 0.01% as of October 27, 2026, paid once a year, so it provides almost no income. Its 0.55% expense ratio is about double the 0.27% peer average. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want tech exposure spread evenly across Nasdaq-100 tech stocks, with no position above about 3.4% as of June 30, 2026.
- Long-term holders who can sit through deep drops, like 42.8% in 2022 and 58.9% in 2008, for the chance of strong growth.
- Those keeping a small satellite position beside broader funds who don't need dividend income from this one.
Look elsewhere if
- Cost-focused investors: the 0.55% expense ratio is the highest of nine similar funds compared, while XLK charges 0.08% and QQQ 0.20%.
- Retirees who need income: the yield was about 0.01% as of October 27, 2026, paid once a year.
- Anyone seeking a broad, steady holding: the fund holds only Nasdaq-100 tech stocks, many of them chipmakers, and has swung almost twice as much as the market.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| QTEC this fund | — | 0.55% | $4.99B | +27.5% | +30.9% |
| RSPT Invesco S&P 500 Equal Weight Technology ETF | 46% | 0.4% | $5.47B | +42.6% | +36.6% |
| QQQ Invesco QQQ Trust Series I | 44% | 0.2% | $490.10B | +8.8% | +24.0% |
| SOXX iShares Semiconductor ETF | 44% | 0.35% | $47.82B | +48.5% | +44.1% |
| SMH VanEck Semiconductor ETF | 43% | 0.35% | $77.20B | +40.5% | +52.2% |
| XLK Technology Select Sector SPDR Fund | 42% | 0.08% | $123.91B | +20.1% | +4.0% |
| QQMG Invesco ESG NASDAQ 100 ETF | 41% | 0.2% | $200.0M | +16.4% | +29.5% |
| QQQM Invesco NASDAQ 100 ETF | 40% | 0.15% | $104.38B | +8.8% | +24.1% |
Questions investors ask
Is QTEC a good ETF for retirement?
QTEC can play a small, higher-risk role in a retirement portfolio, but it isn't built for stability or income. It returned 18.95% a year over the 10 years ended December 31, 2025. It also fell 58.9% during the 2008 financial crisis and 42.8% in the 2022 bear market. Its yield was about 0.01% as of October 27, 2026. Investors who may need to sell shares in a downturn may want to size it with those drops in mind.
QTEC vs RSPT: what's the difference?
Both funds give equal weight to technology stocks. They draw from different lists: QTEC uses the tech companies in the Nasdaq-100, while RSPT, the Invesco S&P 500 Equal Weight Technology ETF, uses S&P 500 tech stocks. About 46% of their holdings overlap. RSPT costs 0.40% a year against QTEC's 0.55%. As of October 27, 2026, RSPT returned 42.6% over one year versus QTEC's 27.5%, and 36.6% a year over three years versus 30.9%.
Does QTEC pay dividends?
Yes, but very little. QTEC pays a distribution once a year. Over the 12 months through October 27, 2026, it paid about $0.03 per share, a yield of roughly 0.01%. Many of its holdings are growth-focused tech and chip companies that pay small dividends or none at all. Investors who want regular income from their holdings will get almost none from this fund.
What is QTEC's expense ratio?
QTEC's expense ratio is 0.55% a year, according to its prospectus filed April 30, 2026. That includes a 0.40% management fee, with no fee waiver. Among nine similar funds compared, QTEC was the most expensive. The group's average was 0.27%. For comparison, the Technology Select Sector SPDR Fund (XLK) charges 0.08% and Invesco QQQ Trust charges 0.20%. Part of the gap may reflect QTEC's equal weighting and quarterly rebalancing.
What stocks are in QTEC?
As of June 30, 2026, QTEC held 48 stocks. The largest were Applied Materials, KLA, Marvell Technology, Astera Labs and Lam Research, each at about 2.9% to 3.4% of the fund. Because the index weights every stock equally, the top 10 made up only 28.7% of assets. Chip and chip-equipment makers feature heavily. About 83% of the fund was in US companies, and 6.9% was in Dutch firms such as ASML and Nebius Group.