BlackRock Launches Nasdaq 100 ETF, Challenging Invesco's Dominance
Taylor Wilson
BlackRock will begin trading a new Nasdaq-100 ETF, IQQ, on Thursday at just $24 a share — a direct challenge to Invesco's long-dominant QQQ franchise, and the second major entrant in a month after State Street's QNDX.
Why is BlackRock only now launching a Nasdaq-100 ETF?
BlackRock is the world's largest asset manager, yet the Nasdaq-100 ETF lane has long belonged to Invesco's QQQ — the default vehicle for large-cap tech exposure.
This means → BlackRock had products in nearly every ETF category except a head-to-head QQQ competitor. IQQ fills that gap.
The timing is deliberate: the Nasdaq-100 posted its best quarterly performance since April 2020 in the three months through June, riding an AI-fueled tech rally.
$24 vs. $722 a share — what does the price gap tell us?
IQQ launches at a net asset value of $24 per share. Invesco's QQQ trades at $722.45; its lower-priced sibling QQQM at $297.45.
In plain terms = one share of IQQ costs roughly one-thirtieth of QQQ, letting retail investors buy whole shares without resorting to fractional trading.
This reflects BlackRock's playbook: pull in retail buyers with a low entry price, then scale up on the back of iShares brand power and distribution.
Can Invesco's moat hold?
QQQ is the oldest and most liquid Nasdaq-100 ETF on the market. Brand recognition and trading depth are its strongest defenses.
But competition is accelerating: State Street launched its own Nasdaq-100 ETF (QNDX) last month. With IQQ arriving now, Invesco faces two heavyweight challengers at once for the first time.
This means → whether the lane can support three large-scale ETFs will come down to who differentiates on fees, liquidity, and brand — a fee war may be just getting started.
What should ordinary investors watch for?
BlackRock's iShares unit already manages over $41 billion in Nasdaq-100-linked strategies. IQQ extends an existing lineup, not a cold start.
In plain terms = three giants fighting over the same pie delivers one clear benefit: fee competition — as expense ratios fall, holding costs drop for everyone.
In the short term, the choice among the three matters little. Over the medium term, whichever fund builds liquidity fastest and cuts fees deepest will become the pick.
Content is for reference only, not financial advice.