Lower fees have not translated into meaningful investor adoption for State Street Nasdaq-100 ETF (QNDX) and BlackRock Nasdaq-100 ETF (IQQ). Invesco's established Nasdaq-100 ETFs continue to dominate in assets and trading activity. J.P. Morgan analysts Kenneth Worthington, Michael Cho and Madeline Daleiden described the newer funds' inconsistent flows in an Oct. 16 research report.
QNDX and IQQ each charge 10 basis points. Invesco QQQ Trust (QQQ) charges 18 basis points. Invesco Nasdaq-100 ETF (QQQM) charges 15 basis points. As of the J.P. Morgan report, QQQ had $489 billion in assets under management. QQQM held $110 billion. IQQ held $700 million. QNDX held $500 million. Based on the report's rounded figures, QQQ's assets were nearly 700 times IQQ's assets and almost 1,000 times QNDX's assets.
The J.P. Morgan report showed that QQQ recorded approximately $36 billion in trading volume on Thursday. QQQM generated about $1.06 billion in trading volume that day. IQQ traded roughly $37 million. QNDX traded $15 million. The figures illustrate that a lower expense ratio does not automatically produce investor adoption or deep secondary-market liquidity.
J.P. Morgan said the newer ETFs had not experienced recent daily outflows. However, J.P. Morgan said inflows into both funds remained sporadic over the past several weeks. The report tracked daily flows from Sep. 15 through Oct. 15. The analysts said daily inflows ranged from negligible amounts to as much as $95 million for IQQ. The analysts said the latest week covered by the analysis saw little movement in net sales for either ETF.
QNDX launched on June 23, 2026, with approximately $5 million in primarily seed assets. IQQ debuted on July 9 with around $25 million. The newer funds' early business performance therefore provides only a limited indication of their long-term potential.
Lower fees can reduce investor costs over time. Trading liquidity, bid-ask spreads and execution costs also matter, particularly for large transactions. The report's trading-volume figures illustrate a substantial liquidity gap but do not establish precise trade execution costs for each ETF. Issuers face the challenge of converting a cost advantage into sustained asset growth. QQQ's scale remains a substantial competitive advantage until the newer funds attract more consistent inflows and trading activity.
Invesco QQQ Dominates Nasdaq-100 ETFs Despite Lower Fees from Competitors
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Summary
Invesco QQQ leads Nasdaq-100 ETFs in assets and trading volume despite lower-fee rivals. As of October 16, 2026, QQQ held $489 billion, versus $700 million for IQQ and $500 million for QNDX. Trading volume on October 15 reached $36 billion for QQQ, compared to $37 million and $15 million for the alternatives. J.P. Morgan analysts noted the newer ETFs charge 10 basis points versus QQQ’s 18, but lack consistent inflows or liquidity. Fear and greed index readings show no shift in investor preference toward cheaper options.
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