BlackRock Launches IQQ to Challenge QQQ on Price
BlackRock enters the Nasdaq-100 ETF war with IQQ, taking aim at Invesco's dominant QQQ with a cheaper price tag.
The ETF price war just got a new contender. BlackRock is launching IQQ, a new fund tracking the Nasdaq-100 index — and the whole point is to undercut the competition on fees. If you're holding QQQ, you now have more options to consider.
Invesco's QQQ has long been the go-to vehicle for traders wanting exposure to the tech-heavy Nasdaq-100. It's one of the most traded ETFs on the planet. But dominance doesn't mean untouchable. State Street already took a swing with its own cheaper alternative, and now BlackRock — the world's largest asset manager — is stepping into the ring with IQQ.
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This is a big deal for retail traders. More competition almost always means lower costs, and lower costs mean more of your return stays in your pocket. When three giants are all chasing the same index, someone has to keep cutting. That's good for you.
The Nasdaq-100 covers the 100 largest non-financial companies on the Nasdaq exchange, so you're getting massive exposure to names like Apple, Nvidia, and Microsoft in a single ticker. Whether you go QQQ, IQQ, or whatever State Street is offering, the underlying holdings are essentially the same — fees and liquidity are what separate them.
Bottom line: BlackRock entering this space adds real pressure on Invesco to respond. Watch the expense ratios closely before you make a move. Continue reading at Yahoo.
