BlackRock said on Tuesday it
would launch an exchange-traded fund tracking the
technology-heavy Nasdaq-100 index, as it seeks to tap
surging investor demand for exposure to the AI-driven stock
market rally.
The iShares Nasdaq 100 ETF, offered by the world’s largest
asset manager, will track the flagship U.S. index and start
trading under the ticker on Thursday,just months after
the Nasdaq revised its criteria to accelerate the
inclusion of newly listed companies such as SpaceX.
BlackRock’s ETF will compete with asset manager Invesco’s
Nasdaq-100 franchise, which has long dominated the market for
investors seeking access to large-cap growth and tech-heavy
stocks through its QQQ Trust Series 1 and Nasdaq 100
ETFs. Last month, bank State Street also
launched a 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,” said U.S. head of iShares at BlackRock Elise Terry.
Strong investor demand for large-caps and technology-focused
stocks helped the Nasdaq 100 log its best quarter since
April 2020 in the three months ended June. The index tracks the
top 100 non-financial companies listed on the Nasdaq stock
exchange.
The iShares Nasdaq 100 ETF will start trading with an
initial net asset value (NAV) of $24 per share. In comparison,
the NAVs of Invesco’s funds are $722.45 and $297.45,
respectively.
BlackRock currently has over $41 billion in assets under
management through its other Nasdaq 100 strategies such as the
iShares Nasdaq Top 30 Stocks ETF and the iShares Nasdaq
Premium Income Active ETF.