Additionally, BATS is sweetening the deal with an initial fee waiver for ETFs that want to move their listing from competing exchanges, like NYSE Arca or Nasdaq.
NYSE Arca is home to the majority of ETFs, accounting for more than 1,200 of almost 1,600 U.S.-listed ETFs on the market. NYSE Arca also charges between $5,000 and $40,000 per year on ETFs, depending on number of shares outstanding, while Nasdaq issues fees ranging between $6,500 to $14,500, depending on how many shares on the market.
Most ETFs try to reflect the performance of a specific market, before expenses. With zero annual exchange fees, some of the popular ETFs can experience lower tracking errors and help the end investors achieve more efficient returns.
For more information on the ETF industry, visit our current affairs category.
Max Chen contributed to this article.