NASDAQ & AMEX ETF's: Who Will Win The ETF Wars?

This week there has been more talk of the ongoing attempts of NASDAQ (NDAQ-NASDAQ) trying to win more of the ETF markets by making new listings cheaper.  On Monday, the exchange announced it was introducing The NASDAQ ETF Market.  NASDAQ claims to now hold 54.1% of the total ETF market share including NASD/NASDAQ TRF market share of 17.8%.

Frankly, the American Stock Exchange has gotten a bit of a re-boost as its listing fees have been traditionally more affordable and rapid.  It has a massive listing of over 200 ETF’s that may actually be closer to 300 ETF’s now with the newest listings and the planned upcoming ETF’s.  The AMEX is still a pending IPO and we have unfortunately not really seen anything new or solid on the timing, terms, or anything with any meat to it to report on.

In a static world, the NASDAQ-100 ETF (QQQQ-NASDAQ) is one of the most liquid ETF’s on any given day and we have seen some more of the NASDAQ index-tracking ETFs switch over to the NASDAQ or just list there.  But it would seem like those companies which already list new ETF’s will be inclined to keep the listings at AMEX to keep things simple.  Maybe I am being old-school in thinking the 3-tickers is more appropriate for ETF’s and stocks that trade on AMEX or NYSE and 4-letter tickers are better to kept pure, rather than 3-letter tickers for NASDAQ listings and more new ETF’s trading with 4-letter tickers. What would seem obvious is that the new flood of ETF’s is creating or will very soon create an oversupply, so the newer listings will have more choices rather than existing ETF’s switching exchanges.

This one is still probably years away from being completely over, but so far AMEX has been winning in the newer ETF’s being listed.

Jon C. Ogg
July 5, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.