BlackRock Launches New iShares Nasdaq 100 ETF to Challenge Invesco
Synopsis
BlackRock is expanding its ETF lineup with a new iShares Nasdaq 100 ETF, increasing competition with Invesco as strong demand for AI-driven and large-cap technology investments continues to fuel the Nasdaq-100.
Key Highlights
- BlackRock to launch the iShares Nasdaq 100 ETF on Thursday.
- The policies will continue President Biden’s campaign pledge of transformation into a climate-oriented economy driving policymaking.
- Growing factors for AI and big-cap tech stocks keep boosting speculation by buyers.
Giant investment manager BlackRock is bringing an iShares Nasdaq 100 ETF to market, matching Invesco in competition for investor cash as demand remains strong for AI and large-cap tech stocks.
The ETF will start trading on Thursday tracking the Nasdaq-100 Index after Nasdaq earlier this month made changes to fast-track new firms such as SpaceX into its closely-watched index, the world's largest asset manager said.
Challenge to Invesco’s Nasdaq-100 Leadership
The new fund will compete directly with Invesco’s QQQ Trust Series 1 (QQQ) and Nasdaq 100 ETF (QQQM), which have dominated for decades as the go-to vehicle for investors in leading U.S. tech companies.
Last month, State Street also launched its own Nasdaq-100 ETF putting upward pressure on this increasingly popular segment amid fierce competition among the biggest asset managers.
The latest ETF will expand BlackRock’s existing line of iShares funds, thus allowing investors to gain additional access to the technology-dominated index.
AI Rally Fuels Investor Demand
For the three months ended June, the Nasdaq-100 saw its biggest quarterly gain since April 2020 as a steady appetite for artificial intelligence and mega-cap growth stocks propelled gains.
The ETF will have a starting NAV of $US24 per share, compared to about $US722.45 and $297.45for the Invesco of Invesco’s fund.
With funds like the iShares Nasdaq Top 30 Stocks ETF and the iShares Nasdaq Premium Income Active ETF, BlackRock is already overseer of incredible US$41 billion in assets linked to the Nasdaq-100, and now tapping into one of tech’s most likely go-to industries, it’s expanding its exposure to AI.
Source: Reuters
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