BlackRock Launches IQQ to Challenge QQQ With Lower-Cost Nasdaq-100 ETF
BlackRock enters the Nasdaq-100 ETF arena with IQQ, taking on Invesco's dominant QQQ and State Street's rival fund.
BlackRock launched a new exchange-traded fund under the ticker IQQ Thursday, targeting investors who track the Nasdaq-100 index at a lower cost — putting the world's largest asset manager in direct competition with Invesco's long-dominant QQQ and a similar offering from State Street.
The move signals an intensifying price war in one of the most popular corners of the ETF market. The Nasdaq-100, which weights heavily toward mega-cap technology companies, has attracted massive investor inflows over the past decade as big tech drove outsized market returns, making it a prime battleground for asset managers competing on fees.
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BlackRock's entry gives cost-conscious investors a third major option when seeking passive exposure to the index. Invesco's QQQ has long been the category's flagship product, but lower-fee alternatives from rivals have steadily chipped away at its dominance by appealing to fee-sensitive retail and institutional buyers alike.
The launch underscores a broader industry trend in which established ETF giants race to undercut one another on expense ratios, betting that capturing long-term assets through lower fees will more than offset compressed margins. For everyday investors, more competition typically translates to better pricing and tighter spreads across the board.
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