The world’s largest asset management company is making a bold move to challenge an established competitor in the technology investment space.
BlackRock submitted paperwork on Monday to federal regulators seeking permission to launch a new exchange-traded fund focused on the Nasdaq-100 index. The proposed iShares Nasdaq-100 ETF would use the trading symbol “IQQ” if approved by the Securities and Exchange Commission.
This new offering would directly compete with Invesco’s highly successful QQQ Trust ETF, which ranks among the world’s largest exchange-traded funds with approximately $376 billion under management, based on LSEG data.
The filing did not include details about what fees would be charged to investors.
Currently, very few publicly available exchange-traded funds focus exclusively on tracking the Nasdaq-100 index, according to VettaFi’s ETF database information.
Invesco’s existing product has become one of America’s most actively traded funds and serves as a popular investment vehicle for those seeking exposure to large technology and growth companies.
The Nasdaq-100 index includes the 100 largest companies trading on the Nasdaq exchange, excluding financial firms. Major technology corporations like Nvidia and Apple are among its key components.
Nasdaq officials expressed support for the increased competition in a public statement. “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,” the exchange operator said.
Financial markets responded to the news with Invesco’s stock price dropping nearly 4% to $23.19 during early trading sessions. BlackRock’s shares also declined slightly by 0.6%.
