Nasdaq ETF changes! BlackRock, Inc. (BLK.US) and State Street (STT.US) are squeezing, and Invesco's (IVZ.US) near 20-year monopolistic position is in jeopardy.

In the global asset management industry, funds tracking the Nasdaq 100 Index have long been seen as one of the most profitable "cash cows", and this area has been dominated by Invesco's flagship fund QQQ for over twenty years. However, this entrenched market structure saw a milestone change in April 2026. BlackRock, Inc. and State Street Corporation, two of the world's largest asset managers, submitted regulatory filings to the U.S. Securities and Exchange Commission on April 6th and 7th, announcing their plans to launch their own Nasdaq 100 Index ETFs. This series of actions marked the two giants' official frontal assault on Invesco's dominance in the $379 billion technology stock investment landscape. It is understood that while other ETFs often add derivatives based on the Nasdaq 100 stocks and trade in the U.S., Invesco has enjoyed nearly exclusive rights to trade the "pure Nasdaq 100 Index" in the U.S. market. Now, the new funds from BlackRock, Inc. and State Street Corporation will become one of the few products in the U.S. listed ETFs that fully track the Nasdaq 100 Index, and the first such funds not managed by Invesco. The core motivation behind this "encirclement" lies in the change in the Nasdaq Stock Market's index licensing strategy. Since the birth of QQQ in 1999, Nasdaq has been extremely cautious about authorizing other institutions to issue similar index funds, allowing Invesco to accumulate a huge asset under management and a high liquidity moat in the tech stock bull market. Some analysts believe that the surge in new fund applications coincides with Nasdaq's proposed rule changes to accelerate the inclusion of new companies in its core indexes. Nasdaq recently announced that it will adjust its rules to shorten the time for new large-cap companies to enter its core indexes, allowing giants like SpaceX to be included in funds linked to the index faster. Todd Sohn, Chief ETF Strategist at Strategas Securities, said: "In a sense, the Nasdaq 100 Index has become a cornerstone of investors' portfolios, so issuers are doing what we have seen many times before - imitating each other. However, on the other hand, I can't help but wonder if this is more related to the potential IPOs coming into the pipeline, as issuers want to prepare exposure to the Nasdaq 100 Index for interested participants." In response, a Nasdaq spokesperson said in an email statement on Monday: "As global demand for exposure to the Nasdaq 100 Index continues to grow, Nasdaq is committed to expanding international influence and deepening institutional investor participation through partnerships with key markets." However, with global investors becoming increasingly sensitive to passive investment tool fees, and exchanges seeking to enhance market depth through competition, BlackRock, Inc. and State Street have finally gained a ticket into this core battlefield. BlackRock, Inc. plans to launch a new fund with a trading code of "IQQ," while State Street's follow-up action reflects the strong desire of these two institutions to not continue to be absent from the lucrative Nasdaq trading ecosystem. Fee competition is undoubtedly the most powerful weapon in this game. Currently, Invesco's QQQ management fee is 0.18%, although its subsequent launch of the low-fee version QQQM has reduced costs to 0.15%, it is widely expected that BlackRock, Inc. will use its strong scale cost advantage to further reduce the fee of the new IQQ fund to 0.12% or even lower. This "price war" model has already played out in the S&P 500 Index ETF field, and its replication in the Nasdaq 100 Index field suggests a significant reduction in holding costs for investors. Analysts believe that BlackRock, Inc. has the largest global iShares distribution network, and once its new products show competitiveness in liquidity and fees, it could lead to a significant amount of funds being withdrawn from Invesco's old funds and invested in these more cost-effective new tools. The capital markets reacted swiftly and directly to this news. Due to expectations of potential market share loss, Invesco's stock price plummeted by over 5% on the trading day following the news, marking the largest single-day decline in recent years. In response, an Invesco spokesperson said: "Building a foundational ETF ecosystem is not an overnight effort, Invesco has always taken a long-term view and promoted its development. There is only one true QQQ." In a research report, Wall Street investment bank JPMorgan pointed out that although Invesco QQQ Trust, with its accumulated deep liquidity, can still attract high-frequency traders in the short term, the entry of BlackRock, Inc. and State Street offers a highly attractive alternative for long-term strategic capital allocation.