Rising competition for Nasdaq 100 ETFs
The launch of competing Nasdaq 100 ETFs by firms like iShares and State Street is expected to challenge the long-standing dominance of Invesco's QQQ.
The argument
The hosts noted that QQQ has held a virtual monopoly on the Nasdaq 100 index with an 18 basis point expense ratio. They argued that new, lower-cost alternatives entering the market will benefit investors through price competition.
The thesis, stress-tested
✓ What validates it
- ✓State Street or iShares launching Nasdaq 100 ETFs with significantly lower expense ratios
- ✓A measurable shift in average daily trading volume away from QQQ to new competitors
▸ Risks discussed
- ▸Invesco may have structural or liquidity advantages that keep trading volumes concentrated in QQQ
Hear it yourself
"But when you when you put that against the fact that the earning story has actually been improving during this period, even after this information has been digested in, and you look at the PE forward PE ratio correction, which is which is, like, something like 18 or 19%, if you didn't have that, improving earnings story, you're basically…"
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