ETF Deathwatch Commodity Bonus Issue

September 3, 2009 by  
Filed under Commentary, ETF Deathwatch 2009

The “official” number of exchange-traded products on Deathwatch dropped dramatically for September.  This month’s list contains just 118 names, a drop of nearly 17% from last month

However, the “unofficial” number now stands at 179, a new record.  The difference between the official and unofficial count is the 61 commodity funds that aren’t already on the list.  At the present time, there are 88 US-listed ETFs and ETNs based on various commodity markets.  The CFTC appears to be upset that these newfangled vehicles are in its sandbox and is now taking steps to curtail such activity.

Recent regulatory activity generated concerns for agricultural and natural gas based funds.  Even when granted relief to issue more shares, some funds chose not to, presumably out of fear for the future.

Then, out of the blue on September 1, Deutsche Bank (DB) announced the impending closure of its popular PowerShares DB Crude Oil Double Long ETN (DXO).  DB claimed the redemption and closure is the result of a “regulatory event”, although there appear to be other factors at play.

If DXO ceases to exist, then is any commodity ETF or ETN safe?  At this time, the answer is not clear.  No one knows where regulators will draw the line.  Therefore, all 88 commodity funds are being added to the unofficial list.

Two fund families, E-TRACS and Elements, have already been on “whole family ETF Deathwatch” for many months since nearly all of their funds appear on the list month after month.  All of the E-TRACS and a large percentage of the Elements products are commodity based.  Therefore, I seriously question the ongoing viability of either of these two families.

The current “official” list consists of 84 ETFs and 34 ETNs that are at least six months old and failed to have an Average Daily Value Traded (ADVT) of at least $100,000 during August.  Although the total ETF value traded in August slipped from the July level, it appears activity picked up for some ETFs.

ETF Deathwatch - September 2009

RankTickerNameAge (mths)Avg Daily VolumeAvg Daily Value Traded
1PTDE-TRACS CMCI Short Platinum Exc Ret ETN1614$500
2MZGClaymore/Mrngstr Manufact. SuperSector2533$619
3BVLElements Ben Graham Large Cap Value ETN13100$823
4EEHElements Spec LgCap US Sector Mo ETN25224$1,648
5RHORydex Inverse 2x S&P Health Care1543$1,748
6MZOClaymore/Mrngstr Services SuperSector25129$2,110
7RTWRydex Inverse 2x S&P Technology15181$4,499
8PQSCPowerShares FTSE Nasdaq Small Cap17229$4,632
9TZDiShares S&P Target Date 2010 Index Fund10171$4,721
10GWOElements CS Global Warming ETN17895$6,202
11CZAClaymore/Zacks Mid-Cap Core ETF29314$6,387
12UEMClaymore U.S.-1-The Capital Markets19157$6,409
13JFTFirst Trust Enhanced 130/30 Large Cap ETN16290$7,639
14OTPClaymore/Ocean Tomo Patent33414$8,485
15AYTBarclays GEMS Asia 8 ETN12190$8,556
16USVE-TRACS CMCI Silver Total Return ETN17419$8,782
17TZLiShares S&P Target Date 2030 Index Fund10324$8,926
18UAGE-TRACS CMCI Agriculture TR ETN17476$9,654
19UBNE-TRACS CMCI Energy Total Return ETN17671$10,146
20OTRClaymore/Ocean Tomo Growth29490$10,272
21MKHHOLDRS Merrill Lynch Market 2000+110224$10,303
22BVTElements Ben Graham Total Mkt Value ETN131,243$11,056
23JJTiPath DJ AIG Tin ETN14352$11,444
24PGDBarclays Asian&Gulf Currency Reval. ETN15248$12,426
25TZViShares S&P Target Date 2040 Index Fund10471$12,955
26MZNClaymore/Mrngstr Inform. SuperSector25690$13,102
27JEMBarclays GEMS Currency Index ETN19324$13,957
28FUEElements MLCX Biofuels ETN191,805$14,108
29BHHHOLDRS B2B Internet ETF11638,162$14,791
30CROClaymore/Zacks Country Rotation26962$14,848
31JYFWisdomTree Dreyfus Japan Yen16557$15,269
32DEFClaymore/Sabrient Defender33795$15,353
33TZOiShares S&P Target Date 2035 Index Fund10552$15,395
34UBCE-TRACS CMCI Livestock Total Return ETN17957$16,047
35PNXQPowerShares Nasdaq Next Q17805$16,228
36CSDClaymore/Clear Spin-Off ETF331,076$17,195
37FVIFirst Trust Value Line Equity Allocation331,171$17,488
38IPSSPDR S&P International Consumer Staples13719$17,842
39BSCElements Ben Graham Small Cap Value ETN131,938$18,029
40IIHHOLDRS Internet Infrastructure1169,114$19,032
41WMHHOLDRS Wireless108410$19,038
42TZGiShares S&P Target Date 2020 Index Fund10738$20,449
43UBME-TRACS CMCI Industrial Metals TR ETN171,133$20,544
44IPNSPDR S&P International Industrial13938$20,597
45IPDSPDR S&P International Consumer Discr13948$21,987
46UCIE-TRACS CMCI Total Return ETN171,248$22,545
47TGRiShares S&P Target Date Retirement Inc.10886$23,921
48ROBClaymore/Robb Report Global Luxury251,657$25,818
49FPXFirst Trust IPOX-100 Index Fund411,510$26,592
50UBGE-TRACS CMCI Gold Total Return ETN171,019$26,604
51AGFPowerShares DB Agriculture Long ETN171,652$27,605
52STHClaymore/Sabrient Stealth362,010$28,643
53INRMarket Vectors Indian Rupee/USD ETN18810$29,715
54PBTQPowerShares Global Biotech Portfolio121,295$29,838
55DODElements Dogs of the Dow Total Return ETN224,686$29,984
56TZIiShares S&P Target Date 2025 Index Fund101,105$30,747
57JYNiPath JPY/USD Exchange Rate ETN28505$31,582
58UBDClaymore U.S. Capital Markets Bond ETF19648$32,071
59XGCClaymore/BNY Mellon Intl Small Cap LDRs291,914$32,093
60PQZPowerShares Active Alpha Multi-Cap172,119$32,738
61PMAPowerShares Active Mega-Cap Portfolio171,738$36,174
62IROClaymore/Zacks Dividend Rotation232,210$38,117
63PQYPowerShares Active AlphaQ171,976$39,092
64GRNiPath Global Carbon ETN141,448$39,787
65WMWElements Mrngstr Wide Moat Focus ETN234,100$39,858
66GCEClaymore CEF Index GS Connect ETN212,695$40,675
67RHMRydex 2x S&P Health Care15771$41,762
68TZEiShares S&P Target Date 2015 Index Fund101,514$42,041
69IRYSPDR S&P International Health Care131,600$43,166
70IPUSPDR S&P International Utilities132,071$44,660
71PSTLPowerShares Global Steel Portfolio112,462$47,781
72FXRFirst Trust Industrials AlphaDex283,910$49,315
73FUDE-TRACS CMCI Food Total Return ETN172,538$50,829
74EKHHOLDRS Europe 2001105929$50,865
75RECRydex Inverse 2x S&P Energy157,086$51,212
76JPPSPDR Russell/Nomura PRIME Japan341,362$51,747
77DPUPowerShares DB Commodity Long ETN163,629$52,834
78RGIRydex S&P Equal Weight Industrials341,376$53,264
79ROIWisdomTree LargeCap Growth91,724$54,145
80EUWisdomTree Dreyfus Euro162,505$57,929
81FTCFirst Trust Large Cap Growth Op AlphaDEX282,857$58,230
82PKWPowerShares Buyback Achievers333,152$58,756
83BDHHOLDRS Broadband ETF1144,905$59,470
84QQXTFirst Trust Nasdaq-100 Ex-Technology313,786$59,771
85PAOPowerShares Auto Balanced Growth NFA165,910$62,098
86PNQIPowerShares Nasdaq Internet152,967$62,974
87FDDFirst Trust DJ STOXX Select Dividend 30245,014$64,171
88TDDTDX Independence 2010232,900$66,095
89TDVTDX Independence 2040234,005$68,061
90EENClaymore/Robeco Developed Intl Equity304,019$68,650
91TLLProShares UltraShort Telecom172,667$68,870
92MBGSPDR Barclays Mortgage Backed Bond ETF72,614$69,031
93PJOPowerShares FTSE RAFI Japan271,810$69,374
94PTRPPowerShares Glb Progressive Transport.122,910$70,469
95PIQPowerShares Dynamic Magniquant353,824$71,389
96FABFirst Trust Multi Cap Value AlphaDEX283,414$71,738
97XRUCurrencyShares Russian Ruble Shares102,305$72,123
98RHSRydex S&P Equal Weight Cons Staples341,610$72,896
99JJPiPath DJ AIG Precious Metals ETN141,471$73,208
100FADFirst Trust Multi Cap Growth AlphaDEX283,481$74,097
101ADZPowerShares DB Agriculture Short ETN172,252$74,852
102SJLProShares UltraShort Russell Midcap Value312,086$77,465
103RYURydex S&P Equal Weight Utilities341,838$78,799
104PTEPowerShares Dynamic Telecom & Wireless456,771$79,573
105FXGFirst Trust Consumer Staples AlphaDex284,838$79,644
106EROiPath EUR/USD Exchange Rate ETN281,443$79,901
107CNYMarket Vectors Chinese Renminbi/USD ETN182,024$81,767
108FXDFirst Trust Cons Discretionary AlphaDex286,329$84,554
109EXBClaymore/Clear Global Exchanges & Brokers276,738$88,537
110XROClaymore/Zacks Sector Rotation364,895$88,835
111SZRWisdomTree Dreyfus S. African Rand143,367$88,975
112PKNPowerShares Global Nuclear Energy175,000$92,509
113IFNAiShares FTSE NAREIT North America223,438$94,183
114GBBiPath GBP/USD Exchange Rate ETN282,105$94,220
115TDXTDX Independence In-Target233,876$96,328
116ADRUBLDRS Europe 100 ADR834,881$97,203
117RMSRydex Inverse 2x S&P MidCap 400222,467$98,914
118DDPPowerShares DB Commodity Short ETN162,367$99,287

Disclosure: no positions

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