ETF Deathwatch – June 2009

The number of exchange-traded products on Deathwatch decreased for the third month in a row.  This month’s list contains 150 names, down from 155 last month and down from the record high of 171 in March.  The current list consists of 111 ETFs and 39 ETNs that are at least six months old and failed to have an Average Daily Value Traded (ADVT) of at least $100,000 during May.

E-TRACS CMCI Energy Total Return ETN (UBN) tops our list this month with an ADVT of $1,137 and an average daily volume of just 85 shares.  Although there were 20 trading days in May, UBN only traded on seven of them.  There are a total of nine E-TRACS products on Deathwatch this month – 90% of the entire E-TRACS product offering.

I have been predicting the closure of E-TRACS for a number of months, and now I have reason to believe the timing could be very soon.  The Dow Jones-AIG Commodity Indexes recently changed to the Dow Jones-UBS Commodity Indexes, or DJ-UBSCI.  What does that have to do with E-TRACS you ask?  One of the problems with E-TRACS is that very few people know what company is behind these products.  It happens to be UBS, a powerhouse in global markets.  They probably would have been much more successful marketing them under the UBS brand rather than E-TRACS.

Many of the iPath commodity ETNS from Barclays are based on the former DJ-AIG indexes.  It is just a matter of time before Barclays changes the names of these products to reflect the new UBS name.  UBS will then get their name in front of ETF and ETN investors every day and will start collecting their share of the licensing fee.  At that point I predict they will no longer be able to justify the continuing losses on the E-TRACS products.  They do have one successful product: E-TRACS CMCI Long Platinum Total Return ETN (PTM).  They just need to find a buyer for PTM in order to achieve a graceful exit from the E-TRACS product line.

PowerShares had the largest mass closing of ETFs in the history of the ETF industry last month.  It was a step in the right direction, but they didn’t go far enough as they still have 26 products on ETF Deathwatch: 18 ETFs, seven ETNs, and one BLDR brand ETF.  No other sponsor has so many failing products.

Claymore is no stranger to shutting down ETFs.  They kicked off the record number of closures in 2008 with their decision to shut down eleven funds in February of that year.  They currently have 20 products on the list in need of attention.  Some, like Claymore U.S.-1-The Capital Markets (UEM), does not have a market maker and is quoted as having a bid/ask spread of more than 14% today.

The two MacroShares on the list are scheduled to close on June 25.  Although technically not ETFs, they are tracked as such by most ETF watchers, including us.

Other sponsors with a large quantity of products or large percentage of their lineup on ETF Deathwatch include Elements with nine (representing 64% of their lineup), First Trust with 19 (49%), and WisdomTree with 15 (29%).

ETF Deathwatch - June 2009

Rank	Ticker	Name	Age (mths)	Avg Daily Volume	Avg Daily Value Traded
1	UBN	E-TRACS CMCI Energy Total Return ETN	14	85	$1,137
2	MZN	Claymore/Mrngstr Inform. SuperSector	22	80	$1,314
3	MZO	Claymore/Mrngstr Services SuperSector	22	105	$1,503
4	BVL	Elements Ben Graham Large Cap Value ETN	10	270	$1,984
5	PTD	E-TRACS CMCI Short Platinum Exc Ret ETN	13	55	$1,997
6	GBB	iPath GBP/USD Exchange Rate ETN	25	50	$2,108
7	MZG	Claymore/Mrngstr Manufact. SuperSector	22	140	$2,369
8	EKH	HOLDRS Europe 2001	102	50	$2,407
9	EEH	Elements Spec LgCap US Sector Mo ETN	22	405	$2,674
10	GWO	Elements CS Global Warming ETN	14	490	$2,712
11	FVI	First Trust Value Line Equity Allocation	30	335	$4,467
12	UBD	Claymore U.S. Capital Markets Bond ETF	16	120	$5,790
13	INR	Market Vectors Indian Rupee/USD ETN	15	175	$6,461
14	TZO	iShares S&P Target Date 2035 Index Fund	7	280	$6,846
15	ADZ	PowerShares DB Agriculture Short ETN	14	225	$7,371
16	FUE	Elements MLCX Biofuels ETN	16	930	$7,394
17	ROB	Claymore/Robb Report Global Luxury	22	665	$8,359
18	UCI	E-TRACS CMCI Total Return ETN	14	515	$8,428
19	AYT	Barclays GEMS Asia 8 ETN	9	195	$9,035
20	MKH	HOLDRS Merrill Lynch Market 2000+	107	220	$9,075
21	JEM	Barclays GEMS Currency Index ETN	16	220	$9,125
22	UBC	E-TRACS CMCI Livestock Total Return ETN	14	480	$9,266
23	JJT	iPath DJ AIG Tin ETN	11	295	$9,297
24	USV	E-TRACS CMCI Silver Total Return ETN	14	465	$9,725
25	CZA	Claymore/Zacks Mid-Cap Core ETF	26	545	$9,728
26	IPU	SPDR S&P International Utilities	10	505	$9,872
27	TZI	iShares S&P Target Date 2025 Index Fund	7	460	$11,563
28	PGD	Barclays Asian&Gulf Currency Reval. ETN	12	240	$11,993
29	TGR	iShares S&P Target Date Retirement Inc.	7	525	$13,377
30	IPN	SPDR S&P International Industrial	10	708	$13,494
31	BHH	HOLDRS B2B Internet ETF	113	38100	$13,571
32	UEM	Claymore U.S.-1-The Capital Markets	16	390	$13,946
33	DOY	MacroShares $100 Oil Down	11	1,760	$13,970
34	PTRP	PowerShares Glb Progressive Transport.	9	680	$14,088
35	UBG	E-TRACS CMCI Gold Total Return ETN	14	550	$14,099
36	TZD	iShares S&P Target Date 2010 Index Fund	7	560	$14,219
37	BSC	Elements Ben Graham Small Cap Value ETN	10	1,775	$14,323
38	IRY	SPDR S&P International Health Care	10	625	$14,419
39	IPF	SPDR S&P International Financial	10	920	$14,953
40	TZE	iShares S&P Target Date 2015 Index Fund	7	620	$15,850
41	STH	Claymore/Sabrient Stealth	33	1344	$16,338
42	PQZ	PowerShares Active Alpha Multi-Cap	14	1185	$16,681
43	CRO	Claymore/Zacks Country Rotation	23	1,285	$17,354
44	XRU	CurrencyShares Russian Ruble Shares	7	565	$17,718
45	GRI	Cohen & Steers Global Realty Majors	13	760	$17,739
46	PQSC	PowerShares FTSE Nasdaq Small Cap	14	1,080	$18,468
47	AGF	PowerShares DB Agriculture Long ETN	14	1,100	$19,452
48	FXR	First Trust Industrials AlphaDex	25	1,790	$19,591
49	PMA	PowerShares Active Mega-Cap Portfolio	14	1,050	$19,695
50	UBM	E-TRACS CMCI Industrial Metals TR ETN	14	1,400	$19,732
51	RHO	Rydex Inverse 2x S&P Health Care	12	370	$19,740
52	PNXQ	PowerShares Nasdaq Next Q	14	1160	$20,195
53	TZG	iShares S&P Target Date 2020 Index Fund	7	815	$20,606
54	BOS	PowerShares DB Base Metals Sht ETN	12	585	$20,689
55	IRO	Claymore/Zacks Dividend Rotation	20	1490	$21,110
56	TZL	iShares S&P Target Date 2030 Index Fund	7	850	$21,196
57	DOD	Elements Dogs of the Dow Total Return ETN	19	4020	$21,497
58	PQY	PowerShares Active AlphaQ	14	1,330	$23,696
59	BVT	Elements Ben Graham Total Mkt Value ETN	10	3,040	$23,956
60	UAG	E-TRACS CMCI Agriculture TR ETN	14	1,310	$26,895
61	JPP	SPDR Russell/Nomura PRIME Japan	31	840	$28,857
62	TZV	iShares S&P Target Date 2040 Index Fund	7	1,190	$29,214
63	EEN	Claymore/Robeco Developed Intl Equity	27	2075	$29,807
64	IST	SPDR S&P International Telecom	10	1670	$31,749
65	FDD	First Trust DJ STOXX Select Dividend 30	21	2,855	$31,758
66	CSD	Claymore/Clear Spin-Off ETF	30	2370	$31,779
67	PTO	PowerShares Auto Growth NFA	13	3,635	$32,145
68	IFEU	iShares FTSE/EPRA NAREIT Europe	19	1,445	$32,170
69	IPS	SPDR S&P International Consumer Staples	10	1,565	$33,905
70	BDG	PowerShares DB Base Metals Lng ETN	12	2,275	$34,619
71	DEF	Claymore/Sabrient Defender	30	2,015	$34,677
72	IPK	SPDR S&P International Technology	10	1,745	$34,927
73	FPX	First Trust IPOX-100 Index Fund	38	2,275	$35,655
74	GRU	Elements MLCX Grains Total Return ETN	16	5,620	$36,316
75	JFT	First Trust Enhanced 130/30 Large Cap ETN	12	1,490	$36,523
76	PSR	PowerShares Active U.S. Real Estate Fund	6	1,415	$36,646
77	DDI	WisdomTree Intl Industrial	32	2,200	$37,215
78	TLL	ProShares UltraShort Telecom	14	1215	$38,260
79	PSTL	PowerShares Global Steel Portfolio	8	2,475	$38,445
80	GRN	iPath Global Carbon ETN	11	1,400	$38,488
81	EU	WisdomTree Dreyfus Euro	13	1,795	$40,171
82	LVL	Claymore/BBD High Income	24	3,750	$40,421
83	EXB	Claymore/Clear Global Exchanges & Brokers	23	3,510	$40,962
84	XGC	Claymore/Great Companies Lg-Cap Growth	26	2,850	$41,289
85	QQXT	First Trust Nasdaq-100 Ex-Technology	28	3,115	$42,613
86	FAD	First Trust Multi Cap Growth AlphaDEX	25	2,365	$43,325
87	GCE	Claymore CEF Index GS Connect ETN	18	3,700	$44,796
88	PBTQ	PowerShares Global Biotech Portfolio	9	2,300	$46,185
89	OTR	Claymore/Ocean Tomo Growth	26	2,555	$46,504
90	BWV	iPath CBOE S&P 500 BuyWrite Index ETN	25	1,305	$48,563
91	FXG	First Trust Consumer Staples AlphaDex	25	3,310	$48,979
92	IPD	SPDR S&P International Consumer Discr	10	2,625	$52,804
93	ADRU	BLDRS Europe 100 ADR	80	3,185	$54,465
94	WMW	Elements Mrngstr Wide Moat Focus ETN	20	6,575	$54,673
95	DPU	PowerShares DB Commodity Long ETN	13	3,825	$55,808
96	PIQ	PowerShares Dynamic Magniquant	32	3,315	$55,895
97	ERO	iPath EUR/USD Exchange Rate ETN	25	1,050	$56,256
98	DPC	WisdomTree Intl Consumer Cyclical	32	3,485	$56,630
99	DEB	WisdomTree Europe Total Dividend	36	1,605	$56,993
100	PJO	PowerShares FTSE RAFI Japan	24	1720	$57,545
101	PAO	PowerShares Auto Balanced Growth NFA	13	5,990	$57,681
102	FNX	First Trust Mid Cap Core AlphaDEX	25	2,965	$58,278
103	OTP	Claymore/Ocean Tomo Patent	30	3,350	$60,618
104	IIH	HOLDRS Internet Infrastructure	113	26,335	$60,932
105	GULF	WisdomTree Middle East Dividend	11	4,310	$61,278
106	JJS	iPath DJ AIG Softs ETN	11	1,535	$62,413
107	RHM	Rydex 2x S&P Health Care	12	1,435	$62,431
108	IFSM	iShares FTSE Dev Small Cap ex-N. Amer	19	2,450	$62,751
109	PQBW	PowerShares Nasdaq 100 Buy/Write	12	3,360	$63,263
110	DEW	WisdomTree Europe High-Yielding Equity	36	1,915	$63,278
111	JJP	iPath DJ AIG Precious Metals ETN	11	1,375	$67,448
112	DBT	WisdomTree Intl Technology	32	4,435	$71,337
113	PJM	PowerShares Dynamic Small Cap	30	4,820	$72,430
114	DBR	WisdomTree Intl Health Care	32	3,790	$72,652
115	FFR	First Trust FTSE EPRA/NAREIT Gbl Real Es	21	3,120	$73,322
116	JYF	WisdomTree Dreyfus Japan Yen	13	2,775	$75,660
117	UOY	MacroShares $100 Oil Up	11	21,539	$75,739
118	FXU	First Trust Utilities AlphaDex	25	5,975	$76,261
119	TDD	TDX Independence 2010	20	3,370	$76,636
120	INY	SPDR Barclays New York Muni Bond	20	3,580	$78,267
121	FRI	First Trust S&P REIT	25	9,680	$79,588
122	JYN	iPath JPY/USD Exchange Rate ETN	25	1,290	$79,673
123	FEX	First Trust Large Cap Core AlphaDEX	25	4,465	$81,024
124	RTR	RevenueShares ADR Fund	6	2,735	$81,094
125	DDP	PowerShares DB Commodity Short ETN	13	1,805	$81,236
126	TDV	TDX Independence 2040	20	5,488	$83,167
127	FXD	First Trust Cons Discretionary AlphaDex	25	7,395	$83,196
128	FGD	First Trust DJ Global Select Dividend	18	5,280	$83,390
129	FYX	First Trust Small Cap Core AlphaDEX	25	4,610	$84,643
130	USY	WisdomTree US Current Income	13	3,398	$84,958
131	PEF	PowerShares FTSE RAFI Europe	24	3,025	$85,037
132	MDD	SPDR S&P International Mid Cap	13	3,910	$85,631
133	JJU	iPath DJ AIG Aluminum ETN	11	3,970	$87,508
134	REC	Rydex Inverse 2x S&P Energy	12	10,360	$87,562
135	EEZ	WisdomTree Earnings Top 100 Fund	28	2,910	$87,617
136	FTC	First Trust Large Cap Growth Op AlphaDEX	25	4,925	$88,458
137	FXN	First Trust Energy AlphaDex	25	6,965	$90,351
138	PDN	PowerShares Dev Markets ex-US Small-Mid	20	5,795	$92,394
139	FXL	First Trust Technology AlphaDex	25	7,520	$93,532
140	DFE	WisdomTree Europe SmallCap Dividend	36	3,230	$93,739
141	DRF	WisdomTree Intl Financial	32	7,655	$94,044
142	DPN	WisdomTree Intl Consumer Non-Cycl	32	4,970	$94,589
143	DXJ	WisdomTree Japan Total Dividend	36	2,595	$95,541
144	FUD	E-TRACS CMCI Food Total Return ETN	14	4,475	$95,882
145	IFNA	iShares FTSE NAREIT North America	19	4,170	$95,915
146	PBS	PowerShares Dynamic Media	48	11,315	$95,943
147	BOM	PowerShares DB Base Metals Dbl Sh ETN	12	2,170	$96,053
148	RYU	Rydex S&P Equal Weight Utilities	31	2,445	$96,124
149	TDX	TDX Independence In-Target	20	4,000	$96,764
150	RYJ	Claymore/Raymond James Strong Buy Eq	9	7,960	$97,503

Disclosure:  no positions.