Maybe everything really is bigger in Texas. 

The Texas Stock Exchange is trying to upend the New York Stock Exchange and the Nasdaq after a $161 million capital raise this week made it the most well-capitalized exchange launch in history. Dubbed “Y’all Street,” the new project is eyeing a 2026 debut and is backed by prominent names, including BlackRock, Charles Schwab and Citadel. CEO James Lee said the venture is “revitalizing competition,” and analysts believe TXSE could attract smaller listings like boutique markets in Toronto or Boston. While it’s not the first time an upstart exchange has tried to break into the US market, the project would provide a venue for smaller, private companies to list, and open up new investment opportunities for clients. 

“As an industry we should be focused on structures that encourage companies to publicly list,” said Jack Miller, Baird’s head of global execution.

All My Exes Live in Texas

TXSE might actually have a shot considering the sheer number of companies that call Texas home, experts said. The state boasts more Fortune 500 firms than any other in the US and recently welcomed Big Tech companies, like Tesla and Hewlett Packard, and mega-brokerages like Charles Schwab, all ex-California natives. There are now more than 5,200 private-equity backed companies in the state, according to a release, and that means plenty of opportunity for TXSE.

While the exchange doesn’t officially toe the “anti-woke” line, TXSE is definitely riding a broader cultural wave of lower-tax, laxer-regulation that is meant to prioritize business’ bottom lines. Texas has been on the frontlines of the “anti-woke” movement that slams ESG and DEI initiatives for allegedly putting social causes before investors’ best interests. And with the Trump administration backing anti-woke agendas, the exchange may get an added boost. “TXSE may not endorse the “anti-woke” moniker but this is definitely part of a broader trend,” Miller said.

Yee-Haw. Still, it’s not the first time new exchanges have taken on the heavyweights in the Empire State. There are approximately 13 exchanges operating in the US as of today, according to Fi Money. The fact that the average investor can only name two illustrates the uphill battle. “Traders aren’t asking for another exchange,” Miller told The Daily Upside. 

One of the most prominent recent launches was the Long-Term Stock Exchange in 2016, although it now has just two companies listed on its exchange. The Green Impact Exchange filed with regulators in July with the aim of establishing the first sustainability-focused stock exchange in the U.S. The project has raised just $3 million to date, according to Tracxn.com.

“I am skeptical that listing exchanges are the actors best positioned to affect capital formation or corporate governance decisions in a meaningful way,” Miller said. “But they certainly have a mouthpiece to influence the dialogue.”

Millennials have been called everything from lazy to a bunch of freeloaders. When it comes to their investing habits, that might actually be true.

Those who grew up on snacks like Dunkaroos and the Dawson’s Creek TV series tend to prioritize alpha more than other generations, and that makes beating market benchmarks a top priority, according to a new survey from tech firm Orion. It’s so important to millennial clients that they would actually switch advisors to help generate returns. “That’s where most people start in the investing world,” Reed Colley, Orion president of technology, told The Daily Upside: “‘I want to make money, and I want to make more money.’” 

While advisors may have boomers in the bag, they’re going to have to focus on building relationships with the new generations to stay competitive.

It’s Not You, It’s Me

The good news is that clients really do like their advisors. Of the investors Orion surveyed, 95% said they were satisfied with their advisors and trusted they worked in their best interest. However, when you break that down by age, younger investors ache for better returns. Just 55% of millennials said they were satisfied with their advisors. Throw in a marriage, some kids, or a large inheritance, and those younger clients have more reason to start heading for the exit. The survey found:

• 38% of millennials say beating the market is “extremely important,” compared with 35% for Gen X investors and just 22% for boomers.
• Millennials are also the most likely to switch advisors after a major life event, with 37% saying they would leave if they inherited more than $1 million and 19% ready to make the change after a divorce.

You’ve Got Mail. Communication is a key, yet tricky, part of retaining younger investors. Millennials have a preference for emails and online messages, the survey found, and 96% of advisors said they plan on using digital channels more in the next three years. However, important information can get easily lost in inboxes, and oftentimes clients aren’t aware of all the services their advisors offer, like estate planning and insurance advice, according to the survey. 

“It’s hard to get your clients’ attention,” Colley said. “COVID fundamentally changed how you meet with clients, and that window of time has narrowed.”

As if winter wasn’t cold enough in North America, proposed US tariffs on Canada are cooling relations between the two historically friendly nations. While Mexico and China are also in the crosshairs this time around, only one of those nations has a thriving ETF market: Canada. 

The asset management market in the Great White North is not nearly as robust or tenured as in the US (to be fair, no one’s is), but with more than 1,500 funds in a wide and increasing array of investment styles, there’s more to the Canadian exchange-traded fund market than may meet the eye. There are also some 160 ETFs that have over $1 billion in assets, mostly trading on the Toronto stock market. (If you see a symbol with a “.TO” after it when looking up ETFs, you know you are shopping north of the border.)

That’s all leaving investors with a fair amount of curiosity about Canada and whether the geopolitical landscape may open up new investing opportunities.

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