A Closer Look at ETFs on the Widely Traded NYSE Arca Exchange

The exchange traded fund universe has quickly grown as investors look to the efficient, cheap and easy-to-use investment vehicle to gain exposure to various market segments and to diversify their portfolios.

As of the end of the first quarter, there were 1,997 U.S.-listed ETFs with $2.8 trillion in assets under management, according to a NYSE Arca note.

The NYSE Arca remains the largest exchange in both exchange traded product volume and listings, with nearly 92% of all U.S. ETF assets under management listed on the NYSE Arca. The NYSE enjoyed the highest market share, tightest spreads, greatest assets under management and majority of daily trading volume compared to any other exchange.

The NYSE holds a 22.0% market share of exchange volume for all U.S. ETFs, followed by Nasdaq 9.9%, EDGX 6.9%, BATS 6.9%, BYX 5.2%, EDGA 2.8%, BX 2.4%, PSX 1.6% and IEX 1.5%.

ETFs traded on the NYSE also experienced the narrowest quoted bid-ask spread for all U.S. ETFs at 61.4 basis points, compared to Nasdaq 116.4 bps, BX 163.5 bps and Bats 167.7 bps.