Victory NASDAQ-100 Index (USNQX), based in Columbus, Ohio, has been managed by Victory since 2000 and currently holds $6.50 billion in assets. Mannik Dhillon has managed it since 2019. In the last five years, USNQX has achieved an annualized return of 14.81%. Over three years, this return increases to 32.66%, placing it in the top third of its category. Note that these returns may not include some fees, which could lower the overall performance.

Increased Volatility and Risk

USNQX is more volatile than similar funds, with a three-year standard deviation of 15.64%, higher than the average of 12.26%. Its five-year standard deviation is 19.22%, compared to the average of 13.91%, indicating rising risk over time. The fund has a five-year beta of 1.17, highlighting its greater volatility compared to the overall market. Its five-year alpha is -0.88, showing it struggles to beat the S&P 500. USNQX is a no-load fund with an expense ratio of 0.42%. The minimum initial investment is $3,000, with subsequent investments needing to be at least $50. Note that fees from investment advisors may affect returns and are not included in these figures.

Market Volatility and Trading Strategies

The NASDAQ-100 has shown strong returns, but it also has higher volatility, as indicated by its 1.17 beta. It tends to do well in rising markets and not as well in falling ones, which creates opportunities for traders using derivatives. Given the current economic conditions, we expect this volatility to continue in the upcoming weeks. Recent inflation data from January 14th rose slightly to 3.4%, adding uncertainty about the Federal Reserve’s future actions. This is reflected in the CBOE Volatility Index (VIX), which increased to 18 this week, up from around 14 for most of December 2025. This indicates that option premiums are rising, rewarding strategies that can anticipate significant price changes. With the higher implied volatility and important tech earnings reports due at the end of January, buying straddles on the Invesco QQQ Trust (QQQ) might be a smart strategy. This allows for potential profits from large price moves in either direction, especially considering how the market reacts to earnings surprises throughout 2025. This method avoids having to predict the direction of the market after earnings. It’s important to note the index’s negative alpha, which means it may not do as well as the S&P 500 on a risk-adjusted basis. For those uncertain about a major breakout, a pairs trade—going long on S&P 500 futures while shorting NASDAQ-100 futures—could help protect against broader market declines. This strategy could take advantage of any relative weakness in the tech-heavy index. In the fourth quarter of 2025, the NASDAQ-100 index consistently faced resistance at the 18,500 mark. As we near this critical level again, using weekly options for defined-risk bets can be beneficial. These short-term options provide a cost-effective way to trade around specific economic data or earnings announcements. Create your live VT Markets account and start trading now.

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