ETF Market Surges with Record Pace of New Fund Launches
The US ETF market has reached a record pace of launches, with about 390 new funds entering the market in just two months. This is more than triple the number of launches seen in the first half of 2024 and marks the largest increase since 2016. Derivatives power 54% of this year's new products, while leveraged or inverse funds account for over one-third.
The surge in ETF launches has been driven by the adoption of Rule 6c-11, which allows fund managers to seek a standardized operating framework for qualifying ETFs without facing the same costs and delays associated with seeking individual exemptive orders. This rule was adopted by the Securities and Exchange Commission (SEC) in 2019.
Investor assets have continued to move towards exchange-traded products, with U.S. ETF assets reaching $15.60 trillion in May 2026. The growth of ETFs has been driven by broader adoption among retail investors, financial advisers, and institutions.