ETF Deathwatch for June had 24 additions and 15 exits. Eight of the departing funds were due to improved health, while the other seven joined the ranks of the “dearly departed.” The membership roll now stands at 486. Three of the closed funds were exchange-traded notes (“ETNs”), while four were exchange-traded funds (“ETFs”). Only one of the eight improved health securities was an ETN. ETNs represent a far smaller number of securities in the U.S. than ETFs, indicating the instability of some of these more financially creative products.
Most of the new members are quite young, having just come out of the six-month grace period given to all new ETFs. Since they haven’t had a large amount of time to attract investor interest, they still have a good chance of coming off the list down the road. This accounts for 17 of the new 24 funds.
This month, all of the eliminated funds had at least a year’s worth of track record, indicating fund sponsors are not overly worried about fund costs and are not pulling funds as quickly as we’ve seen in previous months. The majority of the funds were more than 3 years of age. The oldest was EMSA, the iPath SE MSCI Emerging Markets ETN.
Other sponsors seem to be unduly optimistic. Twenty-three ETFs and ETNs on Deathwatch this month have been on the market for more than 10 years. That is a long time to wait for investor interest to kick in. The BLDRS Asia 50 ADR ETF (ADRA) and BLDRS Europe 100 ADR (ADRU) are the most extreme examples still on the list, while IDHQ, the PowerShares S&P International Developed Quality ETF hit its 10-year mark this month, with net assets of $24.4 million and low daily volume.
The average asset level of the 486 zombie ETFs on ETF Deathwatch rose from $6.3 million to $6.4 million, and the number of products with less than $2 million in assets increased from 96 to 101. The average age rose from 47.5 to 49.0 months, and the number of products more than 5 years of age increased from 171 to 180. The largest ETF on the list had an AUM of $24.3 million, while the smallest had assets of just $374,000.
Here is the Complete List of 486 ETFs and ETNs on ETF Deathwatch for June 2017 compiled using the objective ETF Deathwatch Criteria.
The 24 ETFs added to ETF Deathwatch for April:
- Credit Suisse X-Links Monthly Pay 2x MLP ETN (AMJL)
- QuantShares US Market Neutral Anti-Beta ETF (BTAL)
- Amplify YieldShares CWP Dividend & Option Income ETF (DIVO)
- iShares MSCI Norway Capped ETF (ENY)
- iShares MSCI USA ESG Optimized ETF (ESGU)
- WisdomTree Global Hedged SmallCap Dividend Fund (HGSD)
- Legg Mason Global Infrastructure ETF (INFR)
- NuShares ESG Large-Cap Growth ETF (NULG)
- NuShares ESG Mid-Cap Growth ETF (NUMG)
- NuShares ESG Mid-Cap Value ETF (NUMV)
- NuShares Short-Term REIT ETF (NURE)
- RiverFront Dynamic Unconstrained Income ETF (RFUN)
- ProShares Ultrashort Utilities ETF (SDP)
- Direxion Daily Consumer Staples Bear 1x Shares (SPLZ)
- The WEAR ETF (WEAR)
- Elkhorn S&P MidCap Consumer Discretionary Portfolio (XD)
- Elkhorn S&P MidCap Energy Portfolio (XE)
- Elkhorn S&P MidCap Financials Portfolio (XF)
- Elkhorn S&P MidCap Health Care Portfolio (XH)
- Elkhorn S&P MidCap Industrials Portfolio (XI)
- Elkhorn S&P MidCap Information Technology Portfolio (XK)
- Elkhorn S&P MidCap Materials Portfolio (XM)
- Elkhorn S&P MidCap Consumer Staples Portfolio (XS)
- Elkhorn S&P MidCap Utilities Portfolio (XU)
The 8 ETFs removed from ETF Deathwatch due to improved health:
- American Customer Satisfaction Core Alpha ETF (ASCI)
- PureFunds Video Game Tech ETF (GAMR)
- Trim Tabs Float Shrink ETF (TTAC)
- ARK Genomic Revolution Multi-Sector ETF (ARKG)
- Elkhorn S&P High Quality Preferred ETF (EPRF)
- SPDR S&P International Consumer Discretionary Sector ETF (IPD)
- Janus Henderson Small/Mid Cap Growth Alpha ETF (JSMD)
- UBS ETRACS Monthly Pay 2x Leveraged Mortgage Reit ETN Series B (MRRL)
The 7 ETFs removed from ETF Deathwatch due to delisting:
- X-Links Commodity Rotation ETN (CSCR)
- iPath Short Enhanced MSCI Emerging Markets ETN (EMSA)
- Credit Suisse FI Enhanced Big Cap Growth ETN (FIBG)
- Rex Gold Hedged FTSE Emerging Markets ETF (GHE)
- Dhando Junoon ETF (JUNE)
- AdvisorShares Market Adaptive Unconstrained Income ETF (MAUI)
- AdvisorShares QAM Equity Hedge ETF (QEH)
Looking for more? See our ETF Deathwatch Archives
Disclosure: Author has no positions in any of the securities mentioned and no positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) is received from, or on behalf of, any of the companies or ETF sponsors mentioned.