Here's 1 Nasdaq ETF to Consider Even as the Index Enters Into a Bear Market

Although the scale is successful a carnivore market, that doesn't mean investors should debar it. There are inactive ways to person it acceptable up semipermanent investors nicely. One of them is an exchange-traded money (ETF): the Direxion Nasdaq-100 Equal Weighted Index ETF (NASDAQ: QQQE).

This ETF doesn't see each banal successful the Nasdaq Composite. However, it does enactment disconnected the Nasdaq-100, a subset that contains the 100 largest nonfinancial companies listed connected the exchange.

The Direxion ETF stands retired due to the fact that it's equal-weighted alternatively of marketplace cap-weighted similar galore different Nasdaq ETFs. This means investments are dispersed virtually arsenic among each companies successful the Nasdaq-100 alternatively of larger companies receiving much of the concern and having a larger power connected the question of ETFs.

Megacap tech stocks -- and the "Magnificent Seven" successful peculiar -- marque up the immense bulk of the modular Nasdaq-100. In fact, the 7 stocks (Apple, Nvidia, Microsoft, Amazon, Meta Platforms, Alphabet, and Tesla) relationship for implicit 45% of the index. As they go, truthful goes the index, for amended oregon worse.

With a fistful of tech stocks making up a ample chunk of the Nasdaq-100, it's nary astonishment that the tech assemblage is heavy represented successful the index.

Tech is inactive the largest assemblage successful the equal-weight ETF, but it's overmuch little than with the modular index. Below are the sectors and however overmuch they relationship for successful each:

Source: Direxion. Percentages arsenic of Dec. 31, 2024.