BlackRock NYSE:BLK said on Tuesday it would launch an exchange-traded fund tracking the technology-heavy Nasdaq-100 index NASDAQ:NDX, 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 (IQQ.O) on Thursday, just months after the Nasdaq NASDAQ:NDAQ revised its criteria to accelerate the inclusion of newly listed companies such as SpaceX NASDAQ:SPCX.
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 NASDAQ:QQQ and Nasdaq 100 NASDAQ:QQQM ETFs. Last month, bank State Street NYSE:STT also launched a Nasdaq 100 ETF NASDAQ:QNDX.
"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 NASDAQ:NDX 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 NASDAQ:QTOP and the iShares Nasdaq Premium Income Active ETF NASDAQ:BALQ.