BlackRock (BLK) Stock Takes on QQQ With Cheaper Nasdaq-100 ETF IQQ

TLDR

• BlackRock is launching the iShares Nasdaq 100 ETF under ticker IQQ on Thursday, July 9
• IQQ will charge an expense ratio of 0.10% (waived through July 31, 2027), undercutting rivals
• Invesco’s QQQ and QQQM currently dominate with over $500 billion in assets, charging 0.18% and 0.15%
• State Street also recently launched a competing Nasdaq-100 ETF under ticker QNDX
• BLK stock slipped 0.4% in premarket trading on the news; SpaceX (SPCX) has also just joined the Nasdaq-100 index

BlackRock is entering one of the most competitive corners of the ETF market. The world’s largest asset manager will launch the iShares Nasdaq 100 ETF under the ticker IQQ on Thursday, July 9, taking direct aim at Invesco’s long-standing grip on Nasdaq-100 index funds.

IQQ will carry a gross expense ratio of 0.12%, with a fee waiver dropping that to 0.10% through July 31, 2027. At $10 per $10,000 invested annually, it’s cheaper than both of Invesco’s flagship products. The fund’s initial net asset value is set at $24.

BLK stock edged down 0.4% in premarket trading Tuesday following the announcement.

BlackRock, Inc., BLK

A Crowded Race to the Bottom on Fees

Invesco’s QQQ charges 0.18%, while its lower-cost sibling QQQM sits at 0.15%. Together, they hold more than $500 billion in assets — a formidable lead. But BlackRock isn’t alone in chasing that market.

State Street recently launched its own Nasdaq-100 product, the SPDR Portfolio Nasdaq 100 ETF, trading under ticker QNDX. That fund is also priced to compete on cost.

For investors, the fee war is a straightforward win. Cheaper index funds mean more of the return stays in the portfolio.

SpaceX Now in the Nasdaq-100

The timing of IQQ’s launch coincides with a notable index development. SpaceX, trading as SPCX, was added to the Nasdaq-100 after raising $85.7 billion in its IPO last month — one of the largest in history.

That means IQQ will include SpaceX exposure from day one, which may add some appeal for investors looking for access to the company through an index wrapper.

The Nasdaq-100 tracks the 100 largest non-financial companies listed on Nasdaq, spanning technology, healthcare, consumer, and communications sectors.

BlackRock says IQQ is designed to offer “cost-efficient access” across those sectors, and the fund will sit alongside its existing lineup of iShares products as a complementary option.

The fund begins trading Thursday.

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