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Nasdaq Equal Weight: A Broader Market Surprise

Quick Takes | July 30, 2026
STRATEGY Leveraged & Inverse
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Leveraged & Inverse
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Key Takeaways

The Nasdaq-100 Equal Weighted Index has outperformed its market cap weighted counterpart in 2026 as both earnings growth and market leadership appear to have broadened beyond the largest mega-cap technology stocks. Investors can access leveraged exposure to the equal-weight Nasdaq-100 index with EQQQ.

Most would agree that the market right now is top heavy. In the Nasdaq-100 Index, the five largest stocks by market capitalization account for nearly 30% of the index’s value.[1] But Nasdaq investing has come with two surprises this year: broader participation and broader earnings.

How has Nasdaq-100 performance broadened in 2026?

The Nasdaq-100 hasn’t just been driven by its largest constituents; a broader cross section of companies have contributed to this index’s returns. The equally weighted Nasdaq-100 has outperformed the cap-weighted index year to date and the Magnificent 7 too.

The Nasdaq-100 Equal Weight has outperformed in 2026

1_Mag 7-Nasdaq 100-Nasdaq 100 Equal Weight-Performance.png

Source: Bloomberg, total returns as of 7/22/06. Index returns are for illustrative purposes only and do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged, and one cannot invest directly in an index. Past performance does not guarantee future results.

 

Many who believe an equally weighted strategy may continue to outperform point to valuations to support their argument. The equal-weight Nasdaq-100 has been trading at more than a 30% price-to-book discount, a measure of assets minus liabilities often used to identify potentially undervalued stocks (Source: Bloomberg, as of 7/22/26), which may attract value-focused investors. The counterpoint to this argument is that the largest companies have earned their premium valuations through earnings growth. But the universe of companies with rising earnings estimates has broadened, too.

How have Nasdaq-100 earnings broadened in 2026?

Earnings growth has also been significantly broader for the Nasdaq-100 this year, with trailing 12-month earnings in the equal weight index showing a strong reversal compared to 2025.

Estimated Nasdaq earnings growth has broadened

2_Earnings-Growth-is-Broadening.png

Source: Bloomberg, data as of 7/22/06. Index returns are for illustrative purposes only and do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged, and one cannot invest directly in an index. Past performance does not guarantee future results.

What could a broadening of the Nasdaq-100 mean for investors?

Attractive valuations in the equal weighted Nasdaq-100, combined with rebounding earnings growth, make a solid potential case for a sustained opportunity for equal weight outperformance.

Why consider the ProShares Ultra QQQ Equal Weight ETF (EQQQ)?

The potential investment case for equal-weight Nasdaq exposure in 2026 rests on three general trends:

  • Broader performance participation
  • Broadening earnings growth
  • Attractive valuations

For investors who believe these trends may continue and want to leverage their exposure, the ProShares Ultra QQQ Equal Weight ETF (EQQQ) is the only ETF offering 2x daily exposure to the Nasdaq-100 Equal Weighted Index.

 

[1] Source: Bloomberg, data as of 7/22/26.

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EQQQ

Ultra QQQ Equal Weight

EQQQ seeks daily investment results, before fees and expenses, that correspond to two times (2x) of the daily performance of the Nasdaq-100 Equal Weighted Index. 

STRATEGY Leveraged & Inverse
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Leveraged & Inverse
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This is not intended to be investment advice. Investing involves risk, including the possible loss of principal. Past performance does not guarantee future results.  Any forward-looking statements herein are based on expectations of ProShare Advisors LLC at this time. Whether or not actual results and developments will conform to ProShare Advisors LLC’s expectations and predictions, however, is subject to a number of risks and uncertainties, including general economic, market and business conditions; changes in laws or regulations or other actions made by governmental authorities or regulatory bodies; and other world economic and political developments. ProShare Advisors LLC undertakes no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 

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Investing involves risk, including the possible loss of principal. Leveraged ProShares ETFs are non-diversified and entail certain risks, including risk associated with the use of derivatives (swap agreements, futures contracts and similar instruments), imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. Because the weights of the index are only reviewed on a quarterly basis, the ETF should not be expected to have a truly equal weight composition at all times. The ETF’s underlying index is designed to be a size-neutral version of the cap-weighted Nasdaq-100 Index and therefore should be expected to produce significantly different returns. Please see the summary and full prospectuses for a more complete description of risks.

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