BlackRock Inc is setting its sights on a corner of the $13.7tn US exchange-traded fund (ETF) industry long controlled by Invesco Ltd: Tracking the Nasdaq 100 Index.
The iShares Nasdaq 100 ETF would follow the technology-heavy index and trade under the ticker IQQ, according to a Monday filing with the Securities and Exchange Commission (SEC). Fees for the fund were not yet listed.
“As demand for Nasdaq 100 exposure continues to grow globally, Nasdaq is focused on extending international reach and deepening institutional access by working with a select set of partners in key markets,” a Nasdaq spokesperson said in an emailed statement. “Nasdaq maintains a valuable, longstanding partnership with Invesco and remains committed to supporting the continued strength and success of the Invesco QQQ Innovation Suite as a cornerstone of the Nasdaq 100 ecosystem.”
Should it launch, IQQ would become one of just a handful of US-listed ETFs to solely track the Nasdaq 100, and the first one to not be managed by Invesco. Exchange-operator Nasdaq has been historically selective about licensing out its namesake index, comprising the 100 largest non-financial companies listed on the Nasdaq exchange, since its creation in 1985. While other ETFs that add derivatives to the Nasdaq 100 stocks trade stateside, Invesco has enjoyed virtually exclusive access to the pure Nasdaq 100 in the US market. That relationship has produced the $374bn Invesco QQQ Trust Series 1 fund (ticker QQQ), one of the largest ETFs globally, as well as the $70bn Invesco Nasdaq 100 ETF (QQQM).
An Invesco spokesperson said: “Creating a foundational ETF ecosystem does not happen overnight, and Invesco has always taken a long-term view on building and facilitating its development. There is only one QQQ.”
While IQQ would be its first in the US market, BlackRock manages four Nasdaq 100-tracking ETFs globally. Within the US, BlackRock is also behind Nasdaq-flavored funds including the iShares Nasdaq Top 30 Stocks ETF (QTOP) and the iShares Nasdaq-100 ex Top 30 ETF (QNXT).