Invesco QQQ’s stock is feeling the heat amid a wave of fee cuts from giants BlackRock and State Street. Both rivals rolled out new Nasdaq-100 ETFs charging just 0.10% in fees, sharply undercutting Invesco’s traditional 0.18%, sparking notable investor shifts.
Major institutions are reacting fast. Valence8 US LP trimmed its QQQ holdings by over 15%, offloading 10,340 shares and leaving around $33.7 million invested. Meanwhile, Waverly Advisors LLC took a different route, boosting its stake by nearly 3%, adding 2,907 shares to hold roughly $64.5 million. These moves highlight diverging strategies as the sector adjusts to rising competition.
Fee wars intensify ahead of earnings
State Street’s Nasdaq-100 ETF debuted two weeks before BlackRock’s July 9 launch of their iShares version, both aggressively priced. RBC analysts linked a 6.1% single-day dip in June partly to State Street’s low-fee announcement, signaling that investors are sensitive to cost advantages in passive funds. All eyes now turn to Invesco’s upcoming Q2 earnings report set for release on July 28, which could clarify how the fund plans to respond.
Underlying portfolio shifts add another layer. By July 22, QQQ held nearly 39.7 million shares of SpaceX, worth about $4.57 billion, representing just under 1% of the fund. Such individual asset moves within the index tracker can influence overall sentiment and flows.
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