What Investors Should Know About This $8 Million Tech ETF Sale Last Quarter

On February 17, 2026, NewSquare Capital disclosed the sale of 33,575 shares of the First Trust NASDAQ-100-Technology Sector Index Fund (QTEC +1.83%), an estimated $7.83 million trade based on quarterly average pricing.

What happened

According to an SEC filing dated February 17, 2026, NewSquare Capital reduced its stake in the First Trust NASDAQ-100-Technology Sector Index Fund (QTEC +1.83%) by 33,575 shares during the prior quarter. The estimated value of the shares sold was $7.83 million, calculated using the quarter’s average share price. The position’s quarter-end value declined by $7.67 million, driven by both share sales and price changes.

What else to know

• Top holdings after the filing:
  • NYSEMKT:VTI: $118.29 million (10.4% of AUM)
  • NYSEMKT:VEU: $64.04 million (5.6% of AUM)
  • NYSEMKT:SCHX: $61.27 million (5.4% of AUM)
  • NYSEMKT:IJH: $32.31 million (2.8% of AUM)
  • NASDAQ:BND: $30.50 million (2.7% of AUM)
• As of February 17, 2026, QTEC shares were priced at $225.17, up 6.9% over the past year, underperforming the S&P 500 by 3.55 percentage points. Things have improved for the fund in the weeks since. As of Monday, shares are up about 24% over the past year.

ETF overview

ETF snapshot

• QTEC seeks to track the performance of the NASDAQ-100 Technology Sector Index with an equal-weighted approach, investing at least 90% of assets in index constituents.
• The ETF holds a diversified basket of technology stocks classified under the NASDAQ-100, maintaining equal weighting across all holdings to reduce concentration risk.
• It has a passive index-tracking mandate and a low dividend yield, designed for investors seeking exposure to large-cap U.S. technology equities.

The First Trust NASDAQ-100-Technology Sector Index Fund is a passively managed ETF providing targeted exposure to the technology sector within the NASDAQ-100. The fund’s equal-weighted methodology differentiates it from traditional market-cap-weighted technology ETFs, promoting diversification among its holdings. QTEC is structured for investors seeking a cost-effective, index-based approach to U.S. technology equities, with a focus on sector purity and risk mitigation through equal weighting.

What this transaction means for investors

This ETF spreads exposure evenly across roughly 45 holdings, limiting the outsized influence of companies like Apple or Microsoft and tilting more toward semiconductors and equipment makers. That design can mitigate concentration risk, but it also means the fund may lag when a handful of megacaps drive market returns.

While the fund has delivered strong long-term returns, it has trailed the broader technology benchmark over shorter windows and carries a relatively high valuation profile, with a price-to-earnings ratio of around 39. More recently, the fund’s performance has been fairly in line with the broader market, roughly flat over the past six months, but up solidly over the past year. With NewSquare’s top holdings showing a clear tilt toward broad diversification, it seems this sale likely reflects a modest portfolio rebalance rather than a loss of conviction. The move also came as the fund dumped a sizable stake of the Invesco DWA Momentum ETF last quarter.