From 24/7 Wall St. · Omor Ibne Ehsan · · 1m
BlackRock Launches Cheaper Nasdaq ETF
BlackRock's new ETF offers lower fees than QQQ for Nasdaq-100 investors.
In brief
BlackRock's new ETF offers lower fees than QQQ for Nasdaq-100 investors. BlackRock's IQQ ETF charges 0.10% expense ratio versus QQQ's 0.18% with fee waiver through July 2027. Originally reported by 24/7 Wall St..
BlackRock launches new ETF
BlackRock just launched a new ETF that tracks the exact same index as QQQ but charges you less for the privilege.
QQQ's expense ratio
QQQ charges $18 per $10,000 invested while IQQ offers a 0.10% expense ratio with fee waiver through July 2027.
QQQ's market dominance
QQQ pulls in $1-3 billion daily inflows versus IQQ's $239 million in first two weeks.
QQQ's liquidity advantage
QQQ has 10.1 million open options contracts per day with no competing ETF replicating this liquidity.
Fee savings vs. tax impact
Switching from QQQ to IQQ would incur tax bills exceeding fee savings for most investors.
When to switch
Only new investors with long-term buy-and-hold strategy should consider IQQ over QQQ.
What it means
BlackRock's IQQ ETF charges 0.10% expense ratio versus QQQ's 0.18% with fee waiver through July 2027.
