If you’ve looked at your brokerage account lately, you might’ve noticed something weird. There are basically more ETFs than actual stocks now. Seriously. As of early 2026, the number of U.S.-listed exchange-traded funds has officially blown past the number of individual companies listed on the exchanges.
It’s a bit of a circus.
Honestly, the "old" way of investing in an ETF—buying a low-cost S&P 500 index fund and forgetting about it—is starting to feel like using a flip phone. While those core funds like the Vanguard Total Stock Market ETF (VTI) or iShares Core S&P 500 ETF (IVV) are still the bedrock for most of us, the new exchange traded funds hitting the market right now are a different beast entirely.
They aren't just tracking the market anymore. They're trying to outsmart it.
The Rise of the "Robot" Manager (That’s Actually a Human)
The biggest shift we’ve seen over the last year is the absolute explosion of active ETFs. Back in the day, "active" meant "expensive" and "mutual fund." Not anymore. In 2025 alone, we saw nearly 1,000 active ETFs launch. That’s roughly 85% of all new products.
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Why? Because investors are tired of just riding the wave. They want someone at the wheel, especially with AI and geopolitical shifts making the "set it and forget it" strategy feel a little risky.
Take the iShares U.S. Equity Factor Rotation ETF (DYNF). It’s been a massive hit, pulling in over $13 billion because it doesn't just sit on a pile of stocks; it rotates through them based on what’s actually working, like momentum or value. Then you’ve got guys like Tony Kim over at BlackRock running the iShares A.I. Innovation and Tech Active ETF (BAI). It’s active, it’s tech-heavy, and it’s pulled in billions because people want an expert picking the AI winners, not just a blind index.
Crypto Isn't Just Bitcoin Anymore
You’ve probably heard about the spot Bitcoin ETFs like BlackRock’s IBIT or Fidelity’s FBTC. Those were the big news last year. But the new exchange traded funds for 2026 are moving way beyond just holding one coin.
We’re now seeing "multi-coin" funds and even Solana-linked products getting traction. The Bitwise 10 Crypto Index ETF (BITW) is a prime example of where things are heading. Instead of you trying to figure out if XRP or Solana is going to moon, these funds just grab the top 10 assets and rebalance them monthly.
It’s crypto for people who have a life.
The Ethereum Catch-22
It’s worth noting that while Bitcoin ETFs have been a smash hit—with IBIT pulling in $648 million in a single day this January—Ethereum ETFs like ETHA have been a bit slower to capture the same magic. Analysts like those at Binance Research point out that while Ethereum is the king of developers, its "base layer" fees have been compressed, making the price action a bit more sluggish compared to the "digital gold" narrative of Bitcoin.
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The "Income at Any Cost" Trend
This is where things get kinda spicy. There’s a whole new category called "Outcome ETFs" or "Buffer ETFs."
If you’re worried about the market crashing but still want to stay invested, these are for you. Funds like the iShares Large Cap Max Buffer Mar ETF (MMAX) basically use complex options strategies to protect you from a certain percentage of losses.
- The Pro: You don't lose your shirt if the S&P 500 drops 10%.
- The Con: You usually give up some of the gains if the market goes to the moon.
Then there’s the income side. Have you seen the yields on things like JPMorgan’s Equity Premium Income ETF (JEPI)? They’re using "covered calls" to squeeze cash out of stocks. It’s basically a way to get paid to wait. But don't get it twisted—these aren't magic money machines. If the market rips higher, these funds will likely lag behind because their upside is capped by those same options.
What Most People Get Wrong About New ETFs
The biggest misconception? That "new" means "better."
The truth is, about 150 ETFs liquidated or merged last year. Just because a fund has a cool name like "The Metaverse Robotics Grid ETF" doesn't mean it has enough liquidity to stay alive. If an ETF doesn't gather enough assets (AUM) within its first year, the provider might just pull the plug.
You also have to watch the fees. While a "passive" S&P 500 fund might cost you 0.03%, these fancy new active or derivative-based funds can charge 0.60% or more.
That doesn't sound like much until you realize you’re paying 20 times more for the "privilege" of active management. Sometimes it’s worth it. Often, it’s not.
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How to Actually Play This in 2026
If you're looking to refresh your portfolio with some of these new exchange traded funds, don't dump your core holdings. The pros call it a "Core and Satellite" strategy.
- Keep the Core: 70-80% of your money should stay in low-cost, boring stuff like VTI or BND.
- Add the Satellites: Use the remaining 20% for the "exciting" stuff. Maybe that’s a slice of BAI for AI exposure, or a bit of SGOV (iShares 0-3 Month Treasury) if you just want a safe 5% yield while you wait for a dip.
- Check the "Wrapper": We’re starting to see mutual funds convert directly into ETFs. If your favorite old-school fund like Akre Focus (AKRE) is now an ETF, you get better tax efficiency and intraday trading without changing your strategy.
Actionable Next Steps:
- Audit your expense ratios: If you’re holding a "thematic" ETF from 2023 that hasn't performed, check if you’re paying a "premium" fee for a laggard.
- Look at "Money Market" ETFs: With the launch of the Simplify Government Money Market ETF (SBIL), you can now manage cash directly in your brokerage account with the same standards as a 2a-7 money market fund.
- Watch the Inflows: Sites like ETF.com or Morningstar show where the "big money" is moving. If a new fund is seeing huge inflows (like DYNF recently), there’s usually a reason why institutional advisors are piling in.
The ETF world is moving fast. It’s no longer just a way to "own the market." It’s a way to hedge, generate income, and target specific technologies with surgical precision. Just make sure you aren't paying a Ferrari price for a Honda engine.