Gratus Wealth Trims QQEW Stake by $22 Million -- Is Equal-Weight Nasdaq Still Worth Holding?

11 hours ago 2

Andy Gould, The Motley Fool

Tue, May 5, 2026 astatine 10:29 AM CDT 4 min read

What happened

According to a caller SEC filing, Gratus Wealth Advisors, LLC, importantly reduced its involvement successful the First Trust Nasdaq-100 Select Equal Weight ETF (NASDAQ:QQEW), selling 164,630 shares during Q1 2026. The estimated transaction worth was $22.3 million, based connected the mean closing terms for the quarter. The quarter-end presumption worth successful QQEW declined by $25.0 million, reflecting some the stock merchantability and terms question during the period.

What other to cognize

Following the sale, QQEW represents 1.9% of Gratus Wealth Advisors' full AUM -- extracurricular the fund's apical 5 holdings.
Top holdings aft the filing:
- NYSE: DGRO: $85.5 cardinal (12.4% of AUM)
- NYSE: MGK: $59.8 cardinal (8.6% of AUM)
- NYSE: XSMO: $39.6 cardinal (5.7% of AUM)
- NASDAQ: QQQ: $37.0 cardinal (5.4% of AUM)
- NYSE: IBDR: $36.3 cardinal (5.2% of AUM)
As of May 4, 2026, QQEW shares were trading astatine $139.15, up astir 12% implicit the past twelvemonth -- underperforming the S&P 500 by astir 16 percent points, and trailing its Large Growth class benchmark by astir 4 percent points.

ETF overview

Metric

Value

AUM	$1.6 billion
Expense ratio	0.55%
Dividend yield	0.35%
1-year instrumentality (as of 5/4/26)	12.24%

The First Trust Nasdaq-100 Select Equal Weight ETF (QQEW) tracks the Nasdaq-100 done an equal-weight methodology -- meaning each of the index's astir 100 holdings receives a akin allocation, alternatively than concentrating heavy successful the largest companies.

Designed to trim the mega-cap dominance communal successful market-cap-weighted Nasdaq ETFs similar QQQ.
Holds a diversified premix of large-cap U.S. maturation equities, rebalanced connected a rules-based schedule.

What this transaction means for investors

At archetypal glance, selling much than 60% of an ETF presumption looks important -- but immoderate discourse helps enactment this determination successful perspective. Gratus is simply a wealthiness absorption firm, and the 13F filing reflects a snapshot of holdings astatine quarter-end alternatively than a real-time model into the firm's thinking. The filing unsocial doesn't archer america wherefore the presumption was trimmed.

That said, the merchantability comes against a backdrop of comparative underperformance. QQEW has gained astir 12% implicit the past year, but it has lagged the S&P 500 by astir 16 percent points implicit that agelong -- a meaningful spread for immoderate presumption successful a managed portfolio. Equal-weight strategies similar QQEW thin to radiance erstwhile smaller and mid-cap names successful the Nasdaq support gait with -- oregon outrun -- the mega-cap leaders. In periods wherever a fistful of giants (like the Magnificent 7 stocks) are doing the dense lifting for the index, an equal-weight attack volition people way the cap-weighted alternative.

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