QQQE: Still Correlated To The QQQ, Still Subject To AI Bubble Risks

2025-09-22 18:05:33 ET

The Direxion NASDAQ-100® Equal Weighted Index Shares ETF ( QQQE ) is a way to play the tech market while avoiding the excessive weighting towards the mega-cap tech stocks, allowing for a little more skew towards tech stocks deeper in the Invesco QQQ Trust ETF ( QQQ ) pile. Correlations between the QQQ and the QQQE are still high, so we aren't sure that the QQQE is an effective play to keep tech exposure but be protected against downside risk in U.S. tech indices, but it at least reduces some of the skew towards stocks that have run up excessively and quite narrowly by being beneficiaries of the AI boom, and it shows in the more compressed multiples and valuations....

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