The ETF Billion Dollar Club shrank this month.  This exclusive club, consisting of ETFs and ETNs with more than $1 billion of Average Daily Value Traded (ADVT), now has only 15 members based on the most recent month’s trading, down from 19 for the prior month.

The four members on last month’s list that didn’t make the cut were SPDR Select Sector Energy (XLE), iShares FTSE/Xinhua China 25 (FXI), HOLDRS Oil Services (OIH), and ProShares UltraShort QQQ (QID).  There were no new members this month.

ETF trading declined more than 20% in April from the prior month, as only $1.59 trillion worth of ETFs and ETNs changed hands – down from more than $2 trillion in March.  April ETF trading averaged $75.9 billion per day.

The 15 members of this club, just 1.8% of the ETF population, accounted for 71.4% of the ETF trading in April.  With so few funds grabbing the lion’s share of the action, there are valid concerns about the other end of the spectrum – the funds on ETF Deathwatch.  These include many products with severe liquidity issues such as days with zero volume and/or outrageous bid/ask spreads.

The table below lists the 15 current members of the ETF Billion Dollar Club, those with an ADVT in excess of $1 billion during the latest month (April, 2009).

ETF Billion Dollar Club – May 2009

1SPYSPDR S&P 500 $24,327,356,416
2QQQQPowerShares QQQ$4,662,040,576
3SDSProShares UltraShort S&P500 $3,248,072,960
4IWMiShares Russell 2000 $2,851,707,648
5SKFProShares UltraShort Financials $2,795,528,704
6FASDirexion Daily Financial Bull 3x Shares$2,366,671,360
7XLFSPDR Select Sector Financial $2,157,093,888
8FAZDirexion Daily Financial Bear 3x Shares$2,015,272,960
9EEMiShares MSCI Emerging Markets$1,846,892,288
10IYRiShares DJ US Real Estate $1,623,458,944
11DIADIAMONDS Trust$1,496,565,120
12SSOProShares Ultra S&P500 $1,445,904,896
13EFAiShares MSCI EAFE $1,188,373,888
14GLDSPDR Gold Trust$1,117,319,936
15SRSProShares UltraShort Real Estate $1,042,578,688

Disclosure:  long some of the securities on this list