As exchange traded fund providers look to diversify among primary markets that host their products, NYSE Arca could find greater competition from the Nasdaq and BATS exchanges.
The majority of exchange traded products, which include both ETFs and exchange traded notes, are listed on NYSE Arca. According to the NYSE, there were 1,569 U.S.-listed ETPs on NYSE Arca as of November, 2015. There are currently 1,853 U.S.-listed ETPs from 85 fund sponsors trading on 3 exchanges, according to XTF data.
NYSE Arca has served as the primary listing exchange for the majority of ETFs when listings, including the SPDR S&P 500 ETF (NYSEArca: SPY), were originally found on the American Stock Exchange, which the New York Stock Exchange acquired in 2008.
However, while the NYSE Arca still enjoys the lion’s share of ETF listings, more ETF sponsors are beginning to look at alternatives exchanges to list their products.
For instance, BlackRock’s plans to switch the primary listing venue for 11 of its iShares ETFs, including one to BATS and 10 to Nasdaq.
As of February 2, the iShares MSCI EMU ETF (NYSEArca: EZU) will be listed on BATS. Additionally, the iShares S&P Asia 50 Index (NYSEArca: AIA), iShares MSCI New Zealand Capped ETF (NYSEarca: ENZL), iShares MSCI Brazil Small-Cap ETF (NYSEArca: EWZS), iShares Global Infrastructure ETF (NYSEArca: IGF), iShares Core MSCI Total International Stock ETF (NYSEArca: IXUS), iShares Morningstar Mid Value ETF(NYSEArca: JKI), iShares MSCI China ETF (NYSEArca: MCHI), iShares MSCI EAFE Small-Cap ETF (NYSEArca: SCZ), iShares 0-5 Year Investment Grade Corporate Bond ETF (NYSEArca: SLQD) and iShares 20+ Year Treasury Bond ETF (NYSEArca: TLT) will be trading on the Nasdaq exchange.
“Diversification is an important element of iShares listing strategy,” Samara Cohen, U.S. Head of iShares Capital Markets at BlackRock, said in a press release. “It encourages continuous innovation and ultimately improves the client experience. BlackRock maintains strong relationships with all major exchanges, and we thank BATS, NASDAQ and NYSE ARCA for their ongoing commitment to evolve in a rapidly changing marketplace.”
Van Eck Global, the money manager behind the Market Vectors brand, is also planning to change the primary listing venue of its Market Vectors Biotech ETF (NYSEArca: BBH) and Market Vectors Pharmaceutical ETF (NYSEArca: PPH) to Nasdaq around February 1, according to a press release.