BlackRock Files ETF to Take On Invesco’s Nasdaq 100 Dominance

TLDR

• BlackRock filed a preliminary prospectus for an ETF tracking the Nasdaq 100 Index
• The new ETF would trade under the ticker IQQ
• Invesco has held a near-monopoly on U.S.-listed Nasdaq 100 ETFs since the index launched in 1985
• Invesco’s two Nasdaq 100 ETFs hold a combined $444 billion in assets
• Nasdaq said the move is meant to improve efficiency and access, not replace its Invesco partnership

BlackRock filed a preliminary prospectus on Monday for a new ETF that would track the Nasdaq 100 Index. The fund is expected to trade under the ticker IQQ and would be called the iShares Nasdaq 100 ETF.

The filing was made with the U.S. Securities and Exchange Commission. It marks BlackRock’s first attempt to enter the U.S. market for ETFs that purely track the Nasdaq 100.

Since Nasdaq introduced the index in 1985, it has been selective about who can license it. Until now, Invesco has been the only U.S. asset manager allowed to offer ETFs that solely track the Nasdaq 100.

That exclusivity helped Invesco build two massive funds. The Invesco QQQ Trust Series 1 holds $374 billion in assets. The Invesco Nasdaq 100 ETF holds another $70 billion.

Together, those two funds represent a dominant position in the $13.7 trillion U.S. ETF market. BlackRock’s filing is a direct challenge to that position.

BlackRock already manages four Nasdaq 100-linked ETFs in markets outside the U.S. The new IQQ fund would be its first U.S.-listed product tracking the index directly.

Nasdaq responded to the news with a statement on its website. The exchange said the move is “intended to be additive,” aimed at improving efficiency, liquidity, and access to the index.

Nasdaq Addresses Invesco Partnership

Nasdaq also said it maintains a “valuable, longstanding partnership” with Invesco. The exchange said it remains committed to supporting the Invesco QQQ Innovation Suite as a cornerstone of the Nasdaq 100 ecosystem.

The statement suggests Nasdaq does not see BlackRock’s entry as a replacement for Invesco, but rather an expansion of access to the index.

Market reaction was muted on Monday morning. BlackRock stock edged down 0.1% in premarket trading. Invesco fell 0.7%.

The Nasdaq 100 tracks the 100 largest non-financial companies listed on the Nasdaq Stock Market, ranked by market capitalization. It is heavily weighted toward technology companies.

What This Means for ETF Competition

If launched, the IQQ fund would be among the first U.S.-listed ETFs to purely track the Nasdaq 100 outside of Invesco’s suite. It would compete directly for investor dollars currently concentrated in QQQ and QQQM.

BlackRock is already the world’s largest asset manager. Its entry into this space adds a major competitor to a market that has seen little rivalry at the pure index-tracking level.

The preliminary prospectus does not include a launch date. The fund still requires regulatory review before it can begin trading.

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