The exchange-traded fund (ETF), which tracks the Nasdaq-100 Index, will begin trading on Thursday. Its launch comes just months after Nasdaq updated its index inclusion rules to speed up the entry of newly listed companies such as SpaceX.
The new fund will compete with Invesco’s well-established Nasdaq-100 ETF lineup, including the popular QQQ Trust Series 1, which has long dominated the segment. State Street also entered the space last month with its own Nasdaq-100 ETF.
“IQQ enhances our ability to provide investors with access to the Nasdaq-100 through iShares ETFs, offering complementary strategies that help align portfolios with individual investment objectives,” said Elise Terry, U.S. Head of iShares at BlackRock.
The launch follows a strong quarter for the Nasdaq-100, which posted its best quarterly performance since April 2020 in the three months ended June, driven by continued investor interest in large-cap technology companies benefiting from the AI boom. The index comprises the 100 largest non-financial companies listed on the Nasdaq exchange.
The iShares Nasdaq 100 ETF will debut with an initial net asset value (NAV) of $24 per share, compared with approximately $722 and $297 for Invesco’s comparable Nasdaq-100 ETFs.BlackRock already manages more than $41 billion in assets across other Nasdaq-100-linked products, including the iShares Nasdaq Top 30 Stocks ETF and the iShares Nasdaq Premium Income Active ETF.
