The popular Invesco QQQ exchange-traded fund has been around for more than 25 years, but all of a sudden it is facing stiff competition. BlackRock disclosed today that it plans to launch the iShares Nasdaq 100 ETF as early as this Thursday, just two weeks after State Street launched its own ETF to rival the QQQ: the State Street SPDR Portfolio Nasdaq 100 ETF.

All three track the tech-heavy Nasdaq-100 index, which includes big names such as Apple, Microsoft, Palantir, Nvidia, and now SpaceX. The new ETFs, however, are offering lower fees. BlackRock's ETF, which will take the ticker IQQ, will have a gross expense ratio of 0.12%, with a temporary waiver reducing the expense ratio to 0.10% through July 31, 2027, the asset manager said. State Street's ETF has an expense ratio of 0.10%. Both are lower than the QQQ's total expense ratio of 0.18%.

Invesco offers another ETF that tracks the index, the Invesco Nasdaq 100 ETF, which has an expense ratio of 0.15%.

IQQ's initial net asset value, or NAV, will be $24 per share, according to BlackRock. Shares of QQQ and QQQM were trading at $706.54 and $291.02, respectively, midday Tuesday. Shares of QNDX were trading at $23.93.

The Nasdaq-100 index is a favorite of many investors because it includes some of the largest and fastest-growing publicly traded companies.

Invesco's QQQ is particularly popular with active traders, who like the fund's liquidity; there is about $500 billion in notional options exposure tied to QQQ. Invesco launched the cheaper QQQM in 2020 as an option for investors looking to hold shares for the long term.

"I would not underestimate the 25-year performance track record, experienced management, and global brand recognition of QQQ," Brian Hartigan, Invesco's global head of ETFs and index investments, said in a statement. "As the cornerstone of the Nasdaq-100 ecosystem, a half a trillion dollars of options are tied to the QQQ, offering deep liquidity that will be difficult to displace. These factors create direct value for QQQ investors."

Nasdaq has historically been selective about licensing out the index to asset-management companies, but earlier this year it unveiled plans to expand its partners for ETFs in the U.S. because of rising investor demand.

Now investors can pick from ETFs from Invesco, State Street, and BlackRock. That means there is potential for "considerable market share shifts across the ETFs" that track the Nasdaq-100 index, J.P. Morgan Securities analyst Kenneth B. Worthington wrote in a June 25 report to clients.

BlackRock has Nasdaq-100 Index ETFs listed in other countries, but the U.S.-listed IQQ will provide investors with another tool for their portfolios, the company said.

"Supported by the liquidity, market quality, and scale of the iShares platform, this expanded suite gives investors the flexibility to customize their exposures and evolve portfolios over time," said Elise Terry, U.S. head of iShares at BlackRock.

BlackRock's iShares has a global lineup of more than 1,700 ETFs and more than $6 trillion in assets as of June 19, according to the company. Including IQQ, iShares has launched 20 funds in the U.S. this year.