BlackRock, Inc.

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Bullish +75

Meet the BlackRock ETF Taking Aim at Invesco’s QQQ

AI-generated analysis

🚀 BlackRock is preparing to launch the iShares Nasdaq 100 ETF (IQQ), directly competing with Invesco's QQQ and QQQM funds.

📉 This move challenges Invesco, which has held a monopoly on Nasdaq 100 ETFs for decades due to restrictive licensing agreements.

💰 Fee comparisons are a key focus, with QQQM offering lower fees (15 basis points) compared to QQQ (18 basis points).

📊 Market data shows $8 billion exited the $376 billion QQQ in early 2026, while QQQM saw $1.6 billion in net inflows during that period.

⚖️ QQQ recently converted from a unit investment trust to an open-end fund, reducing its fee from 20 basis points to 18 and gaining marketing flexibility.

🆕 Invesco also launched the QQQ Equal Weight ETF (QEW), which allocates 1% to each constituent stock in the Nasdaq 100.

🌍 BlackRock currently lacks a US-listed Nasdaq 100 ETF but holds versions domiciled in Canada, Hong Kong, and Europe.

🔀 The company also possesses US funds like QTOP and QNXT that could provide similar exposure to the Nasdaq 100 index.

📝 Nasdaq has introduced a new select set of partners for US ETF products, though it did not confirm if BlackRock is included beyond its historical relationship with Invesco.

💼 Both Invesco and BlackRock emphasize long-term growth, with Nasdaq noting that expanding access to the index aims to improve efficiency and liquidity.

Bullish Signals
  • BlackRock is launching a new iShares Nasdaq 100 ETF (IQQ) to compete with established funds, demonstrating significant demand for Nasdaq 100 exposure.
  • Invesco QQQ attracted nearly $8 billion in exits during the first two months of 2026, while its lower-cost sibling QQQM saw $18 billion in net inflows over 12 months, indicating strong investor appetite for efficient index tracking.
  • The QQQ fund successfully converted from a unit investment trust to an open-end structure, reducing its fee from 20 basis points to 18 and increasing flexibility for capital allocation.
  • BlackRock highlights the Nasdaq 100's history of 'capturing companies shaping long-term growth,' reinforcing the index's appeal for future-oriented portfolios.
  • Nasdaq officials stated that expanding access to the index is 'additive' and supports investors by improving efficiency, liquidity, and availability across markets.
  • The introduction of new competitors like BlackRock's IQQ may increase competition and potentially lead to more favorable pricing or innovation in the ETF space over time.
Risk Factors
  • Invesco's QQQ has faced significant outflows of nearly $8 billion during the first two months of 2026, indicating potential investor uncertainty despite its long-standing reputation.
  • While Invesco launched the lower-fee QQQM ETF attracting net inflows, this suggests investors are seeking alternatives with cheaper fees, putting pressure on the flagship fund's fee structure.
  • The conversion of QQQ from a unit investment trust to an open-end fund reduced fees from 20 basis points to 18 basis points, demonstrating that even established funds are vulnerable to competitive pressures and fee erosion.
  • Nasdaq indicated it is restricting access to its index for ETF providers beyond a select set of partners, limiting the number of competitors in this category and consolidating power with few players.
  • BlackRock's entry with IQQ could disrupt Invesco's decades-long lock on the Nasdaq 100 category, creating uncertainty for established shareholders and market structure stability.
Full Analysis
BlackRock is preparing to launch the iShares Nasdaq 100 ETF (IQQ), a new fund designed to compete directly with Invesco's long-dominating products, specifically the QQQ Trust and the Nasdaq 100 ETF (QQQM). This development marks a significant shift in the market, as Invesco has maintained a lock on this specific index category for decades, partly due to Nasdaq's historically limited licensing of the index to other ETF providers. While BlackRock does not currently hold a US-listed Nasdaq 100 ETF, it already offers international domiciled versions and several domestic alternatives, such as the iShares Nasdaq Top 30 Stocks ETF (QTOP) and iShares Nasdaq 100 ex Top 30 ETF (QNXT), which could serve as building blocks for similar exposure. The competitive landscape has evolved in recent months, with fee structures becoming a critical factor for investors tracking the index. Invesco's flagship QQQ Trust held $376 billion in assets during the first two months of 2026, though it experienced nearly $8 billion in exits, while the lower-fee QQQM attracted $1.8 billion over 12 months. QQQM currently charges a fee of 15 basis points compared to the QQQ's 18 basis points, following Invesco's earlier conversion from a unit investment trust to an open-end fund which lowered its fee from 20 basis points and increased flexibility with income. Invesco has defended its market position, stating that the QQQ has been synonymous with innovation for over 25 years and describing the new competition as an unlikely scenario where "there is only one QQQ." Nasdaq itself has responded by referring to a "new select set of partners for ETF products in the US" while declining to confirm whether BlackRock is included beyond Invesco. The exchange noted its ongoing relationship with Invesco and emphasized that expanding access to the Nasdaq 100 is intended to be additive, aiming to support investors by improving efficiency, liquidity, and availability of benchmark-linked exposure. Additionally, Invesco recently launched the QQQ Equal Weight ETF (QEW), which allocates 1% to each constituent stock rather than following the market capitalization weighting of the broader Nasdaq 100 index that excludes financial services companies.