Market Overview

Direxion Nasdaq-100 ETF Due Out Wednesday (AAPL, QQQ, QQQE)


Direxion, the second-largest purveyor of leveraged and inverse ETFs, will introduce the Direxion NASDAQ-100 Equal Weighted Index Shares (Nasdaq: QQQE) on Wednesday March 21, 2012. The new ETF will be Direxion's sixth plain vanilla offering.

QQQE will track the track the NASDAQ-100 Equal Weighted Index, an equal-weight version of the Nasdaq 100. The dominant Nasdaq 100 ETF to this point has been the PowerShares QQQ (Nasdaq: QQQ), the sixth-largest U.S.-listed ETF by assets.

The new Direxion offering will have an expense ratio of 0.40%.

Clearly what will be interesting to see about the Direxion NASDAQ-100 Equal Weighted Index Shares is how the ETF performs in an environment where Apple (Nasdaq: AAPL) is surging and driving the tech sector's returns.

The Guggenheim S&P Equal Weight Technology ETF (NYSE: RYT) is one equal-weight tech ETF that has done well for itself. RYT has almost $138 million in assets under management and the fund is up almost 16% year-to-date, but with an allocation to Apple of just 1.51%, RYT has been outperformed by QQQ and the Technology Select Sector SPDR (NYSE: XLK).

QQQ's current weight to Apple is 18.77%, making the fund one of the more popular destinations for investors looking to get some Apple exposure via ETFs. Obviously, the new Direxion will not feature such a large allocation to Apple and that could be important in the fund's attempts to attract investor assets and decent trading volume.

Posted-In: News Sector ETFs Broad U.S. Equity ETFs Specialty ETFs Intraday Update Markets Movers Tech


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