Best Funds: First Trust NASDAQ-100 Equal Weight Index (QQEW)
The First Trust NASDAQ-100 Equal Weight Index (QQEW) essentially is the equally weighted version of the PowerShares QQQ Trust (QQQ), which tracks the Nasdaq-100. It has handily outperformed its counterpart and did better peak-to-trough in the financial crisis as well.
I like the Nasdaq-100 because it is stacked with fast-growing companies, giving it a great chance to outperform most indices.
So, how does equal weighting benefit the QQEW? Well, as a good for-instance, hot-running Tesla Motors (TSLA) is weighted at just 0.71% in the QQQ, but it’s the top holding of QQEW at 1.53%, more than double its weight in the PowerShares ETF. And even after its next rebalancing, TSLA will still make up 1% of the QQEW.
Expenses are 0.6%, or $60 annually for every $10,000 invested.