Key insights
- BlackRock is launching an iShares Nasdaq-100 ETF (ticker IQQ) to compete with Invesco's dominant QQQ. This increases competition in the Nasdaq-100 tracking ETF market. Invesco's stock price declined nearly 4% on the news, while BlackRock's edged slightly lower. The new ETF aims to improve efficiency and liquidity for investors seeking exposure to large-cap growth and technology companies.
April 6 (Reuters) - BlackRock has filed for an exchange-traded fund that will track the Nasdaq-100, in a challenge to Invesco's dominance in a market where only a handful of funds directly follow the tech-heavy index.
The world's largest asset manager is seeking approval for iShares Nasdaq-100 ETF, which will trade under the ticker "IQQ", it said in a filing with the Securities and Exchange Commission on Monday.
Fees for the fund were not specified.
The fund would compete with Invesco's QQQ Trust ETF, one of the largest ETFs in the world, with around $376 billion in assets under management, according to data compiled by LSEG.
"Expanding access to the Nasdaq-100 is intended to be additive, supporting investors by improving the efficiency, liquidity, and availability of benchmark-linked exposure across markets and product types," Nasdaq said in a public statement.
Only a handful of publicly available ETFs exclusively track the Nasdaq-100, according to data from VettaFi's ETF database.
Invesco's product is one of the most widely traded funds in the U.S. and a popular way for investors to gain exposure to large-cap growth and technology companies.
The Nasdaq-100 comprises 100 of the largest non-financial companies listed on the Nasdaq exchange, including tech giants such as Nvidia and Apple.
Invesco shares declined close to 4% to $23.19 in early trading. BlackRock shares edged 0.6% lower.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Sriraj Kalluvila)