Key Highlights
- The iShares Nasdaq 100 ETF will debut under the IQQ ticker on Thursday, July 9
- Annual expense ratio sits at 0.10% after fee waiver (gross 0.12%, waived until July 31, 2027)
- Invesco’s competing QQQ and QQQM products hold more than $500 billion combined, with fees at 0.18% and 0.15% respectively
- State Street recently entered the space with QNDX, its own Nasdaq-100 tracking fund
- BLK shares dipped 0.4% during premarket hours following the announcement; SpaceX (SPCX) recently became a Nasdaq-100 constituent
The world’s preeminent asset management firm is wading into a fiercely contested segment of the exchange-traded fund marketplace. BlackRock will introduce the iShares Nasdaq 100 ETF, trading as IQQ, this Thursday, July 9, mounting a serious challenge to Invesco’s established dominance in Nasdaq-100 index tracking products.
The new offering will feature a gross expense ratio of 0.12%, but an initial fee waiver brings that down to just 0.10% for investors through July 31, 2027. That translates to $10 in annual costs for every $10,000 investedânotably less expensive than either of Invesco’s primary Nasdaq-100 offerings. BlackRock has established the fund’s starting net asset value at $24.
“IQQ enhances our ability to offer investors access to the Nasdaq-100 with iShares ETFs,” said Elise Terry, U.S. head of iShares at BlackRock.
Shares of BLK declined 0.4% in Tuesday’s premarket session after the product announcement.
Fee Competition Intensifies Among Major Players
Invesco’s flagship QQQ product carries an expense ratio of 0.18%, while its budget-conscious alternative QQQM charges 0.15%. The two funds collectively manage upwards of $500 billion in investor capitalâa commanding market position. Yet BlackRock is hardly the only firm pursuing this lucrative opportunity.
State Street has also thrown its hat into the ring with a recently debuted Nasdaq-100 vehicle, the SPDR Portfolio Nasdaq 100 ETF under the ticker QNDX. This product similarly emphasizes competitive pricing.
From the investor’s perspective, this escalating fee competition delivers clear benefits. Lower-cost index funds allow a greater portion of investment returns to remain in shareholder accounts.
SpaceX Joins Nasdaq-100 Lineup
IQQ’s market debut comes alongside an important index change. SpaceX, which trades under ticker SPCX, secured its place in the Nasdaq-100 following last month’s massive $85.7 billion initial public offeringâamong the largest market debuts on record.
Consequently, IQQ holders will gain immediate SpaceX exposure, potentially enhancing the fund’s attractiveness for those seeking diversified access to the aerospace company via an index vehicle.
The Nasdaq-100 Index comprises the 100 largest non-financial corporations listed on the Nasdaq exchange, representing technology, healthcare, consumer goods, and communications industries.
According to BlackRock, IQQ will provide “cost-efficient access” to these diverse sectors, complementing the firm’s established iShares product suite with another strategic option.
Trading commences this Thursday.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
