The longstanding dominance of the New York Stock Exchange and Nasdaq in hosting exchange traded funds (ETFs) in the United States is facing increasing pressure from emerging competitors, reflecting shifts in market dynamics and product innovation.
Data from Morningstar shows that Chicago-based Cboe has rapidly expanded its share of new ETF launches in 2026, recording 561 product debuts so far this year. This accounts for nearly half of all new US ETF listings, a sharp rise from 340 during the entire previous year. Meanwhile, the recently launched Texas Stock Exchange (TXSE), which began operations in July, has also begun attracting primary ETF listings, including some that were previously listed on NYSE Arca, the fully electronic ETF-focused exchange owned by the NYSE.
NYE Arca and Nasdaq still lead overall in total ETF listings, but industry analysts say the growing presence of Cboe and TXSE signals a meaningful challenge to the traditional duopoly. Bryan Armour, director of passive strategies research at Morningstar, described Cboe as a “significant disrupter” that is helping break the long-standing hold of NYSE and Nasdaq over the sector. He noted that Nasdaq’s initial success in carving out ETF listings from NYSE Arca has shifted again with the rise of derivative-heavy product strategies, which align well with Cboe’s origins as an options exchange.
Derivative-based ETFs have seen rapid growth in recent years, appealing to investors interested in managing risk or enhancing income through options and futures. Segments such as buffer ETFs, which use options to limit downside risk, and synthetic income funds, like covered call strategies, now represent about $337 billion in assets, up from $104 billion at the end of 2023, according to research provider ETF Action. Leveraged and inverse ETFs, which employ swaps and futures to amplify short-term returns or profit from declines in underlying assets, have nearly doubled to $183 billion over the same period.
The accelerating volume of new ETF launches — with 1,187 new products introduced in the first nine months of 2026 — has heightened competition among exchanges for listings. Both Nasdaq and NYSE have responded by launching new initiatives, including Nasdaq’s enhanced maker-taker fee program and the establishment of Texas-based exchanges within the past 18 months.
The TXSE has made notable strides, listing 10 ETFs since mid-September and attracting transfers of funds from established venues such as NYSE Arca. James Lee, CEO of TXSE, noted increased activity moving from NYSE listings to the new Texas platform. Large asset managers like BlackRock, JPMorgan, and Goldman Sachs are among shareholders in TXSE, underlining institutional interest in these alternative exchanges.
Despite shifting market share, NYSE Arca continues to maintain dominance in terms of assets under management, holding 73% of US ETF assets, ahead of Nasdaq’s 18% and Cboe’s 7.6%, according to Tidal Financial Group. Cboe has also implemented capped annual fees for issuers launching families of “defined outcome” ETFs, a growing category that uses derivatives to hedge against market declines and often launches in batches. Additionally, Cboe has secured a substantial portion of listings from Corgi Funds, a venture-backed ETF provider that has launched more than 200 products since December with a focus on competitive pricing.
Nasdaq remains optimistic about its performance in the ETF market. Gabrielle Venmiti, head of ETF listings at Nasdaq, said the exchange is on track to surpass its 2025 tally of new ETF launches. NYSE declined to comment on its current positioning.
The evolving landscape illustrates how innovation in ETF product structures and trading infrastructure is reshaping the listing preferences of fund issuers, as newer exchanges seek to capitalize on the expanding $16 trillion US ETF market.