ETF launches hit record 370 by May amid AI surge

The ETF industry introduced 370 new funds by early May 2026, up from 290 at the same point last year. About 80% of the new listings are structured as active strategies.

AI-themed ETFs accounted for several of the biggest debuts. The Roundhill Memory ETF (DRAM) reached $1 billion in assets in 10 trading days and topped $3 billion by early May, driven by large weightings in global memory-chip manufacturers. The Dan Ives Wedbush AI Power & Infrastructure ETF (IVEP) targets industrials and utilities that supply power for data centers.

Fixed-income launches showed notable innovation, with roughly 70% entering as active funds. The ProShares Genius Money Market ETF (IQMM) collected about $22 billion in flows since February. Reckoner Capital introduced collateralized loan obligation ETFs, including the Reckoner Yield Enhanced AAA CLO ETF (RAAA), which use leverage and offer distribution options across senior and mezzanine tranches. Calamos rolled out autocallable income ETFs that package structured-note hedges into daily-traded vehicles offering monthly coupons.

Commodity funds aimed at technology supply chains attracted interest. The Sprott Rare Earths Ex-China ETF (REXC) focuses on minerals used in chip manufacturing and electrification, and sponsors are positioning these products to give investors exposure to those supply-chain links.

Preparations for a potential SpaceX initial public offering, possibly in June 2026 with an expected valuation near $1.5 trillion, coincided with a pickup in space-focused funds. At least three space ETFs launched in the most recent quarter and several more are pending. The Procure Space ETF (UFO) remains the largest in the category at roughly $750 million after index rules were updated to allow day-one inclusion of mega-cap IPOs.

Crypto product development expanded as approvals accelerated. New listings from established managers include the Morgan Stanley Bitcoin Trust (MSBT) and the iShares Staked Ethereum Trust ETF (ETHB). Sponsors are moving beyond spot bitcoin to offerings tied to tokenized assets and decentralized finance strategies.

Fee compression continued across categories. Large issuers introduced lower-cost active ETFs with fees near 23 basis points, and new entrants in the defined-outcome or buffer space priced downside protection at about 30 basis points in some cases.

By early May 2026 the ETF lineup included 370 new funds across AI, fixed income, commodities, space and crypto, with the majority of launches structured as active strategies.