July 7, 2026, (Inside AI) — BlackRock, the world’s largest asset manager, will launch a new exchange-traded fund tracking the Nasdaq-100 index on Thursday. The iShares Nasdaq 100 ETF aims to capture surging investor demand for AI-driven tech stocks.
The fund will trade under the ticker IQQ. It enters a market long dominated by Invesco’s QQQ Trust Series 1 and Nasdaq 100 ETF. State Street also launched a competing Nasdaq-100 ETF last month.
BlackRock’s move comes after the Nasdaq revised its criteria to accelerate inclusion of newly listed companies. SpaceX is among the high-profile names now eligible. The index tracks the top 100 non-financial companies on the Nasdaq exchange.
The new ETF will start with a net asset value of $24 per share. That’s significantly lower than Invesco’s funds, which have NAVs of $722.45 and $297.45. The lower price point could attract retail investors seeking fractional exposure.
“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 Elise Terry, U.S. head of iShares at BlackRock.
Strong demand for large-cap tech stocks helped the Nasdaq-100 log its best quarter since April 2020 in the three months ended June. The AI rally has been a key driver, with companies like Nvidia and Microsoft seeing massive gains.
BlackRock already manages over $41 billion in other Nasdaq-100 strategies. These include the iShares Nasdaq Top 30 Stocks ETF and the iShares Nasdaq Premium Income Active ETF. The new fund expands its footprint in tech-focused passive investing.
The ETF Price War Intensifies
BlackRock’s entry signals a new phase in the battle for Nasdaq-100 assets. Invesco’s QQQ is one of the most traded ETFs globally, with over $200 billion in assets. But competitors are chipping away with lower fees and innovative structures.
State Street’s QNDX, launched in June, charges just 0.05% in annual fees. BlackRock has not yet disclosed IQQ’s expense ratio. Fee competition has been a hallmark of the ETF industry, and investors often flock to the cheapest option.
Vanguard, a notable absentee in this space, has historically avoided narrow thematic funds. Its absence leaves room for BlackRock and State Street to challenge Invesco’s dominance. The lower NAV of IQQ could also democratize access for smaller investors.
The Nasdaq-100 has become a proxy for AI exposure. Its heavy weighting in tech giants makes it a barometer for the AI trade. With the index up over 30% in the past year, the launch is well-timed.
AI’s Market Influence and Risks
The AI boom has reshaped market dynamics. The Nasdaq-100’s concentration in a few mega-cap stocks raises concerns about diversification. The top five holdings—Apple, Microsoft, Nvidia, Amazon, and Meta—account for over 40% of the index.
This concentration amplifies the impact of AI sentiment swings. Any regulatory or technological setback could trigger sharp drawdowns. Yet, for now, investor appetite remains robust.
BlackRock’s launch also comes amid a broader shift toward passive investing. ETFs have attracted record inflows, surpassing $1 trillion globally in 2025. The trend shows no signs of slowing as AI-driven strategies gain traction.
The iShares Nasdaq 100 ETF will compete not just on price but on BlackRock’s brand and distribution muscle. The firm’s iShares franchise is the largest ETF provider worldwide. Its scale could quickly draw assets from rivals.
As the AI rally continues, the battle for Nasdaq-100 supremacy will likely intensify. Investors stand to benefit from lower costs and more choices. But the real test will be how these funds perform when the AI hype cycle inevitably cools.
