NYSE | Best US Exchange for Listing ETFs | Best US Exchange for Trading ETFs
Douglas M Yones, Head of Exchange Traded Products, NYSE, answers the questions on the exchange’s wins in this year’s US awards.
Why do you think you won this award?
We are honoured to receive the award for both the #1 exchange to list ETFs and the #1 exchange to trade ETFs in the US. The NYSE is the world’s largest stock exchange and the global leader in the listing and trading of ETFs, with over 75 per cent of ETF assets listed on our exchanges. Our team is dedicated to advancing the ETF industry, and we have worked hard to enhance our technology as well as to bring new innovations and education to our clients.
What does your exchange do differently from other exchanges that list ETFs in the US?
In our commitment to empowering the ETF ecosystem, we have been at the forefront of ETF innovation, including most recently offering the ability for ETFs to list and trade directly on the NYSE trading floor. Our unique floor-based trading model offers enhanced market quality by combining world class technology with human oversight.
In addition to our best-in-class technology and trading models, the NYSE ETF team has fostered an unparalleled ETF community of asset managers, investment advisers, and a retail following. We work closely with new and existing ETF issuers at all stages of their listing journey; and the NYSE is the pioneer and clear leader when it comes to broad access to ETF education. The NYSE recently collaborated with Trackinsight to launch ETFCentral.com, an online platform that provides real-time data, analytics and news across every single US-listed ETF daily. Additionally, and with just as much impact, the NYSE collaborated with The ETF Institute to expand both access and the curriculum for the industry’s only FINRA recognised ETF centric designation, the Certified ETF Advisor (CETF).
How has this last year been for the NYSE in terms of product launches?
This past August, the NYSE reached 2,000 ETF listings, an incredible milestone that further demonstrates the continued growth of the ETF industry and the NYSE’s reputation as the Home of ETFs. The NYSE ETF team has launched more than 200 ETFs across 78 independent issuers in the first nine months of 2023. We expect this momentum to continue into the second half of the year and are excited about the opportunity to collaborate with even more asset managers as they choose to enter our growing industry.
Have you observed different types of product launches coming through?
The NYSE offers concierge services to assist and guide new and existing asset managers on recent developments across our industry. Of note, this year over 70 per cent of new launches were actively managed ETFs, continuing a three-year trend for the markets.
Additionally, our team has seen strong cash flow across the emergence of structured products, such as ETFs that combine equities and options strategies to deliver more leveraged returns for investors. We have also seen an increased interest in fixed income-related strategies, and as a result, more product development focused on adding broad and niche fixed income ETFs to product lineups.
Any predictions for the US ETF industry in 2024?
The ETF industry – closing in on USD7.5 trillion in AUM – has experienced tremendous growth over the past few years, and the NYSE is proud to be at the centre of that growth. The NYSE ETF team plays a critical role in driving this impressive progress by offering best-in-class support for asset managers and bringing the greatest marketplace for ETF liquidity to both issuers and investors.
We believe the path to success in the ETF marketplace will continue to evolve as more asset managers and Registered Investment Advisors (RIAs) are considering conversions of existing mutual funds and SMAs to an ETF. Thus far the industry has converted over USD60 billion in AUM directly into ETFs, and the pipeline forward is even larger. Our team is here to assist asset managers and RIAs in this journey.
We also anticipate actively managed ETF launches to continue to outpace passively managed ETF launches, while progressing towards USD1 trillion in AUM.
