Lower fees haven't translated into meaningful traction for two new Nasdaq-100 ETFs, as Invesco's established products continue to dominate in assets and trading activity.

J.P. Morgan analysts Kenneth Worthington, Michael Cho and Madeline Daleiden noted in an Oct. 16 research report that State Street Nasdaq-100 ETF (NASDAQ:QNDX) and BlackRock Nasdaq-100 ETF (NASDAQ:IQQ) have seen sporadic daily flows in recent weeks, with limited movement in net sales during the latest week.

QQQ's Dominance In Numbers

The fee gap is notable. QNDX and IQQ each charge 10 basis points, compared with 18 basis points for the Invesco QQQ Trust (NASDAQ:QQQ) and 15 basis points for the Invesco Nasdaq-100 ETF (NASDAQ:QQQM).

Yet the newer funds remain a fraction of their competitors' size.

As of the report, QQQ had $489 billion in assets under management, while QQQM held $110 billion. By comparison, IQQ had just $700 million and QNDX $500 million.

That puts QQQ's asset base at nearly 700 times IQQ's and almost 1,000 times QNDX's, based on the rounded figures in the report.

The trading-volume gap is even more pronounced.

On Thursday, QQQ recorded approximately $36 billion in daily trading volume. QQQM generated about $1.06 billion, while IQQ traded roughly $37 million and QNDX just $15 million.

The figures highlight the challenge facing new ETF entrants: offering a lower expense ratio does not automatically translate into investor adoption or deep secondary-market liquidity.

Can Cheaper Fees Win Investors?

The newer ETFs have not experienced recent daily outflows, according to J.P. Morgan, but their inflows have been inconsistent. The report tracks daily flows from Sep. 15 through Oct. 15. The analysts said flows into State Street's QNDX and BlackRock's IQQ remained sporadic over the past several weeks, with daily inflows ranging from negligible amounts to as much as $95 million for IQQ. They added that the latest week covered by their analysis saw little movement in net sales for either ETF.

Both funds are also relatively young. QNDX launched on June 23, 2026, with approximately $5 million in primarily seed assets, while IQQ debuted on July 9 with around $25 million.

Their early performance as businesses therefore offers only a limited indication of their long-term potential.

For investors, lower fees can reduce costs over time, but trading liquidity, bid-ask spreads and execution costs also matter, particularly for large transactions. The report's trading-volume figures illustrate the substantial liquidity gap, although they do not establish the precise cost of executing trades in each ETF.

For issuers, the challenge is turning a cost advantage into sustained asset growth. Until the newer funds attract more consistent inflows and trading activity, QQQ's scale remains a formidable competitive advantage.