BlackRock launches Nasdaq-100 ETF to challenge Invesco in U.S. tech fund market

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BlackRock launches Nasdaq-100 ETF

Highlights

BlackRock launches the iShares Nasdaq 100 ETF with an initial NAV of $24 per share, entering direct competition with Invesco's QQQ Trust Series 1 and Nasdaq 100 ETF.
The Nasdaq 100 achieved its strongest quarterly gain since April 2020, driven by robust flows into technology and AI-focused stocks, boosting ETF investor demand.
BlackRock's new ETF offers a lower entry NAV than Invesco's $722.45 and $297.45 competing funds, intensifying fee and access competition in the tech ETF segment.

Nasdaq-100 product rollout expands BlackRock offering

As reported by Reuters, BlackRock says it is launching the iShares Nasdaq 100 ETF to track the technology-heavy Nasdaq-100 index, adding another product to its lineup as investors seek broader access to the U.S. growth trade.

The fund starts trading under its ticker on Thursday and debuts with an initial net asset value of $24 per share. The launch comes just months after Nasdaq revised its criteria to speed up the inclusion of newly listed companies such as SpaceX.

Elise Terry, U.S. head of iShares at BlackRock, says IQQ expands the firm's ability to give investors access to the Nasdaq-100 through complementary ETF strategies that can be matched to portfolio goals.

BlackRock already manages more than $41 billion across other Nasdaq 100 strategies, including the iShares Nasdaq Top 30 Stocks ETF and the iShares Nasdaq Premium Income Active ETF.

AI rally intensifies pressure in U.S. ETF competition

BlackRock's new fund enters a segment long led by Invesco, whose QQQ Trust Series 1 and Nasdaq 100 ETFs have dominated among investors looking for large-cap growth and technology-heavy exposure. State Street also launched a Nasdaq 100 ETF last month, adding to the competitive pressure in the category.

Demand has been supported by strong flows into large-cap and technology-focused stocks as enthusiasm around artificial intelligence lifts the broader market. The Nasdaq 100 posts its best quarter since April 2020 in the three months ended June, reflecting the strength of the rally in non-financial companies listed on the Nasdaq exchange.

BlackRock's launch also highlights the price and access differences within the segment. The new ETF begins with a lower NAV than Invesco's comparable funds, whose NAVs stand at $722.45 and $297.45, respectively.

In our earlier article on SpaceX’s rapid inclusion in the Nasdaq-100 after its market debut, we explained how revised Nasdaq rules accelerated its entry and set up a wave of index-linked buying. We noted estimates of billions in passive inflows as funds tracking the benchmark rebalance, alongside a debate over SpaceX’s valuation as broker coverage begins.

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