Competition in the world of exchange-traded funds is no longer just to attract investors. The New York Stock Exchange and the American Stock Exchange have engaged in a pricing battle over ETFs, trying to lure asset managers to their respective floors. As the NYSE has eliminated transaction fees on ETFs, AMEX has done the same - all in an attempt to become the leading exchange for ETFs.
Last month, the NYSE began trading 27 AMEX-listed ETFs without charging a transaction fee. The NYSE made a similar move in April 2001, when it began trading, without fees, the QQQ (based on the Nasdaq 100 Index), the SPDR (based on the S&P 500) and the Diamonds (based on the Dow Jones Industrial Average).