Spin waves are investigated in yttrium iron garnet waveguides with a thickness of 39 nm and widths ranging down to 50 nm, i.e., with an aspect ratio thickness over width approaching unity, using Brillouin light scattering spectroscopy. The experimental results are verified by a semianalytical theory and micromagnetic simulations. A critical width is found, below which the exchange interaction suppresses the dipolar pinning phenomenon. This changes the quantization criterion for the spin-wave eigenmodes and results in a pronounced modification of the spin-wave characteristics. The presented semianalytical theory allows for the calculation of spin-wave mode profiles and dispersion relations in nanostructures.