BlackRock Inc. is launching a new exchange-traded fund tracking the Nasdaq-100 Index, stepping up competition with Invesco Ltd. as investors continue to pour money into technology-focused funds amid the artificial intelligence-led market rally.
According to a statement by BlackRock on Tuesday, the iShares Nasdaq 100 ETF will begin trading on Thursday. The fund will track the benchmark Nasdaq-100 Index, which comprises the 100 largest non-financial companies listed on the Nasdaq stock exchange.
The launch comes months after Nasdaq revised its index eligibility rules to speed up the inclusion of newly listed companies, including SpaceX, into the benchmark.
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The new ETF will compete directly with Invesco's established Nasdaq-100 products, including the QQQ Trust Series 1 and Nasdaq 100 ETF, which have long dominated the segment. State Street also entered the space last month with its own Nasdaq-100 ETF.
"IQQ enhances our ability to offer investors access to the Nasdaq-100 with iShares ETFs, providing complementary strategies that allow them to align their portfolios with their objectives," Elise Terry, U.S. head of iShares at BlackRock, said in the statement.
The launch follows strong investor appetite for large-cap technology stocks, which helped the Nasdaq-100 deliver its strongest quarterly performance since April 2020 during the April-June period.
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The iShares Nasdaq 100 ETF will debut with an initial net asset value of $24 per share, compared with $722.45 for Invesco's QQQ Trust Series 1 and $297.45 for its Nasdaq 100 ETF.
The world's largest asset manager, BlackRock already manages more than $41 billion in Nasdaq-100-related strategies, including the iShares Nasdaq Top 30 Stocks ETF and the iShares Nasdaq Premium Income Active ETF, according to a statement by company.
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