QQQE Vs. QQQ: The Former Wins On Both Fundamentals And Technicals Currently

I prefer QQQE over QQQ and QQQM for the next twelve months. It's a tactical satellite trade, not core, and it mirrors my RSP trade in the S&P 500. Equal weighting cuts technology from 60% to 45% of the portfolio, and the two funds share only 52% of their weight despite holding the exact same stock list.

Fundamentals favor market cap. Forward PE is close at 21.4x vs. 22.3x, but QQQM's return on equity is 47.5% against 24.6% for QQQE. Technicals favor market cap too. QQQE has broken below its 50-day average again, and its RSI sits at 41 vs. 56 for QQQM.

Macro is the tiebreaker. I expect AI productivity to show up in earnings outside tech, and once it hits guidance, it will be too late to buy.

In a recent article about my bullishness on how AI is affecting the real economy's productivity , I proposed adding fresh money destined for the markets to a less concentrated allocation, such as an equal-weight S&P 500.