BlackRock Enters the Nasdaq 100 ETF Race BlackRock has announced plans to launch the iShares Nasdaq 100 ETF (Nasdaq: IQQ), giving investors a new low-cost route into the companies driving gro
BlackRock has announced plans to launch the iShares Nasdaq 100 ETF (Nasdaq: IQQ), giving investors a new low-cost route into the companies driving growth across technology, healthcare, consumer discretionary, and communication services. The fund is expected to begin trading on Nasdaq as early as Thursday, July 9, with an initial net asset value of $24 per share.
On fees, BlackRock is coming in aggressively. The ETF carries a gross expense ratio of 0.12%, with a waiver cutting that figure to 0.10% through July 31, 2027. That positions IQQ directly against Invesco's QQQ Trust, which charges 0.20%, and its lower-cost sibling QQQM at 0.15%, as well as State Street's recently launched SPDR Portfolio Nasdaq 100 ETF (QNDX), which also priced in at 0.10%.
The launch is not a surprise. Nasdaq expanded licensing for the index earlier this year, opening the door for new entrants. BlackRock already oversees more than $41 billion in assets across its existing Nasdaq-focused strategies, including the iShares Nasdaq Top 30 Stocks ETF and the iShares Nasdaq Premium Income Active ETF, giving it a credible foundation to compete.
Invesco has held a near-monopoly on Nasdaq 100 ETF products in the United States since QQQ launched in 1999. State Street moved first among the challengers, launching QNDX last month after Invesco restructured QQQ as a traditional open-ended fund in December. BlackRock's entry now means three of the world's largest asset managers are competing for the same pool of investor capital.
The timing is deliberate. Strong demand for large-cap and technology-focused stocks helped the Nasdaq 100 record its best quarter since April 2020 in the three months ended June, fuelled in large part by the ongoing AI rally. That backdrop has kept appetite for Nasdaq exposure elevated and makes the space an attractive target for competing products.
Industry analysts believe fees will be decisive. "Fees will likely play a very significant role when competing with QQQ's existing scale," said Roxanna Islam, head of sector and industry research at TMX VettaFi, adding that BlackRock and State Street's established ETF platforms should make it straightforward to attract investors to the new products. Others have noted that the presence of multiple providers also creates practical advantages for advisors, such as the ability to harvest tax losses by rotating between near-identical funds without triggering wash-sale rules.
Sources:BlackRock official press release via Business WireReuters via Yahoo Finance: BlackRock to launch Nasdaq-100 ETFThe Daily Upside: State Street Follows BlackRock to Challenge Invesco's QQQ
