BlackRock plans to launch a Nasdaq 100 ETF to challenge Invesco's monopoly position
According to Jinshi News, BlackRock is setting its sights on a long-dominated segment of the $13.7 trillion U.S. ETF market by Invesco: tracking the Nasdaq 100 Index.
According to documents submitted to the U.S. Securities and Exchange Commission (SEC) on Monday, the iShares Nasdaq 100 ETF will track this index, with the trading code IQQ. If the fund is launched, IQQ will become one of the few U.S.-listed ETFs specifically tracking the Nasdaq 100 Index and the first of its kind not managed by Invesco.
Since the Nasdaq Exchange launched the index in 1985, it has been relatively cautious about authorizing its use. Although there are ETF products in the U.S. market that overlay Nasdaq 100 constituents through derivatives, Invesco has almost monopolized the market for pure Nasdaq 100 Index ETFs.
This partnership has given rise to the Invesco QQQ Trust Series 1, with a scale of $374 billion, which is one of the largest ETFs in the world, as well as the Invesco Nasdaq 100 ETF, with a scale of $70 billion.
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