BlackRock, the world's largest asset manager with over $6 trillion in iShares platform assets as of June 19, announced Tuesday the upcoming launch of the iShares Nasdaq 100 ETF (ticker: IQQ). The announcement coincided with the addition of Elon Musk's SpaceX (ticker: SPCX) to the Nasdaq 100 index, less than a month after the company's record-setting initial public offering.
The Nasdaq 100 tracks the 100 largest non-financial companies listed on the Nasdaq exchange by market capitalization. Current constituents include Apple Inc. (AAPL), Microsoft Corp. (MSFT), Qualcomm Inc. (QCOM), Meta Platforms Inc. (META), PepsiCo Inc. (PEP), and Regeneron Pharmaceuticals Inc. (REGN). SpaceX's inclusion follows its June 12 IPO, which was the largest in history, with the company closing its first trading day at a valuation exceeding $2 trillion.
SpaceX's rapid index entry is among the fastest ever for the Nasdaq 100, according to Reuters. However, not all index providers have moved as quickly. S&P Global declined to fast-track SpaceX into the S&P 500, citing its existing profitability requirements, though it did relax rules for its S&P Total Market Index and Dow Jones U.S. Total Stock Market Index.
The iShares Nasdaq 100 ETF is designed to provide exposure to companies driving innovation and long-term economic growth across technology, healthcare, consumer discretionary, and communication services, BlackRock said. The fund is expected to begin trading on the Nasdaq as early as July 9, with an initial net asset value of $24 per share. Its gross expense ratio is 0.12%, with a waiver reducing it to 0.10% through July 31, 2027.
“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, in a statement.
The launch comes amid strong performance for BlackRock's iShares ETF business, which posted its best-ever first-quarter results earlier this year with $132 billion in net inflows. As of June 18, BlackRock's iShares Nasdaq-100 strategies held over $41 billion in assets globally. The broader iShares platform had more than $6 trillion in assets as of June 19, according to the firm.
Advisors may note parallels to recent market developments, such as the wave of new single-stock ETFs triggered by SpaceX's record IPO, as well as ongoing concerns about portfolio concentration highlighted in SpaceX-Tesla merger speculation. Meanwhile, BlackRock's broader research on retirement preparedness, including its survey showing 68% of workers feel on track but savings replace only half of expected income, underscores the importance of diversified investment vehicles like IQQ.
