The number of exchange-traded products on Deathwatch jumped to 171, an increase of nearly 12% from a month ago and another new record.  The current list consists of 134 ETFs and 37 ETNs that are at least six months old and failed to have an Average Daily Value Traded (ADVT) of at least $100,000 during the month of February.

SPDR S&P International Consumer Discretionary (IPD) heads up the list for the second month in row.  If you thought trading volume for IPD couldn’t get any worse than the 300 shares in January, then February’s total of 200 shares should prove otherwise.  The shares traded at $15.21, for a total value of $3,042.  The seller probably didn’t want to dump the entire 200 shares on the market at the same time, so the transaction took place in two separate 100-share trades about three minutes apart on the morning of February 23.

As mentioned in earlier issues, it’s not just ETFs that are in trouble; sometimes it’s the entire ETF family.  Northern Trust exited the ETF business in February with the closure of all 17 of their NETS ETFs.  Other sponsors likely to exit the business soon include:

SPA MarketGrader: they have a total of six ETFs and all six are on deathwatch again this month.  Their most “successful” product trades less than 2,000 shares a day for an ADVT of less than $25,000.  Look for SPA to exit the ETF business soon.

MacroShares: they currently have only two products and both are on deathwatch.  MacroShares suffer from design flaws that don’t allow their trading price to properly track the underlying index, making it questionable if MacroShares should be classified as ETFs.  They plan on introducing two more pairs later this year, so it doesn’t appear they are ready to throw in the towel yet.  However, dismal interest in their current products may give them pause.

E-TRACS: they have ten products and nine are on deathwatch.  All ten of their offerings are ETNs, which have their own set of concerns.  The only one showing any signs of success is E-TRACS CMCI Long Platinum Total Return ETN (PTM), which traded nearly $1.9 million per day in February.  Perhaps E-TRACS can sell PTM to another sponsor before shutting down their other ETNs.

Two other sponsors have a large percentage of products in trouble but are likely to remain in the ETF business due to the relative success of their other products.  However, we anticipate a large number of closures from:

Elements: they have 17 products and ten are on deathwatch this month.  Additionally, all their products suffer from the ETN stigma.

Claymore: they currently have 20 products on deathwatch.  However, Claymore is no stranger to the challenges of the ETF market.  They were one of the first companies to close a large number of ETFs, and they will likely have to make that hard decision again soon.  However, don’t count Claymore out as a sponsor; they have launched some great products and will probably do so again.

The deathwatch list below is reserved for U.S. listed ETFs and ETNs at least six months old with an Average Daily Value Traded (ADVT) for the most recent calendar month of less than $100,000 per day.  If you are interested in the other end of the spectrum, the highly traded ETFs, be sure to check out ETF $Billion Club.

ETF Deathwatch - March 2009

RankTickerNameAge (mths)Avg Daily VolumeAvg Daily Value Traded
1IPDSPDR S&P International Consumer Discr711$160
2UBNE-TRACS CMCI Energy Total Return ETN1132$380
3SNBSPA MarketGrader 2001768$764
4BVLElements Ben Graham Large Cap Value ETN7189$1,177
5SVDSPA MarketGrader Mid Cap 10017137$1,511
6JJTiPath DJ AIG Tin ETN863$1,549
7SIHSPA MarketGrader 10017232$2,707
8BVTElements Ben Graham Total Mkt Value ETN7479$2,803
9SSKSPA MarketGrader Small Cap 10017268$3,045
10UAGE-TRACS CMCI Agriculture TR ETN11168$3,060
11IPNSPDR S&P International Industrial7211$3,288
12IPKSPDR S&P International Technology7247$3,756
13BHHHOLDRS B2B Internet ETF11014,258$3,918
14GCEClaymore CEF Index GS Connect ETN15411$4,597
15PWDPowerShares FTSE RAFI Europe Small Mid17568$5,327
16ROBClaymore/Robb Report Global Luxury19632$5,780
17GWOElements CS Global Warming ETN111,211$5,937
18SZRWisdomTree Dreyfus S. African Rand8300$5,986
19UBCE-TRACS CMCI Livestock Total Return ETN11342$6,572
20UCIE-TRACS CMCI Total Return ETN11468$6,597
21EEHElements Spec LgCap US Sector Mo ETN191,074$7,260
22UEMClaymore U.S.-1-The Capital Markets13189$7,288
23FUDE-TRACS CMCI Food Total Return ETN11405$7,734
24INRMarket Vectors Indian Rupee/USD ETN12226$7,783
25UBDClaymore U.S. Capital Markets Bond ETF13168$7,912
26RHMRydex 2x S&P Health Care8168$7,964
27BJKMarket Vectors Gaming ETF13568$8,143
28OTRClaymore/Ocean Tomo Growth23521$8,229
29CROClaymore/Zacks Country Rotation20758$8,432
30PQYPowerShares Active AlphaQ11589$9,105
31FUEElements MLCX Biofuels ETN131,511$10,125
32BDGPowerShares DB Base Metals Lng ETN9805$10,423
33PTDE-TRACS CMCI Short Platinum Exc Ret ETN10284$10,565
34XGCClaymore/Great Companies Lg-Cap Growth23937$10,569
35DPUPowerShares DB Commodity Long ETN10853$10,673
36BNZWisdomTree Dreyfus New Zealand Dollar8626$11,044
37JFTFirst Trust Enhanced 130/30 Large Cap ETN9579$12,104
38IFNAiShares FTSE NAREIT North America16658$12,437
39WMWElements Mrngstr Wide Moat Focus ETN172,026$12,944
40STHClaymore/Sabrient Stealth301,200$13,188
41SFVSPA MarketGrader 40171,232$13,672
42DBTWisdomTree International Technology291,084$13,782
43FDDFirst Trust DJ STOXX Select Dividend 30181,474$14,271
44FXDFirst Trust Cons Discretionary AlphaDex221,721$14,501
45GBBiPath GBP/USD Exchange Rate ETN22384$14,914
46RGIRydex S&P Equal Weight Industrials28505$15,166
47MZNClaymore/Mrngstr Inform. SuperSector191,026$15,307
48PNQIPowerShares Nasdaq Internet91,111$15,528
49EENClaymore/Robeco Developed International Eq241,447$15,838
50PDQPowerShares Asia Pacific ex-Jpn Small-Mid171,863$16,379
51IIHHOLDRS Internet Infrastructure1109,132$17,757
52FXLFirst Trust Technology AlphaDex221,732$17,936
53RHORydex Inverse 2x S&P Health Care8321$18,171
54UBME-TRACS CMCI Industrial Metals TR ETN111,468$18,410
55IRYSPDR S&P International Health Care7826$18,757
56EKHHOLDRS Europe 200199463$18,990
57JEMBarclays GEMS Currency Index ETN13489$19,188
58IPUSPDR S&P International Utilities7984$19,512
59PEHPowerShares Dynamic Europe Portfolio212,326$19,737
60BSCElements Ben Graham Small Cap Value ETN73,268$20,215
61FPXFirst Trust IPOX-100 Index Fund351,558$20,335
62PMAPowerShares Active Mega-Cap Portfolio111,253$20,587
63MKHHOLDRS Merrill Lynch Market 2000+103532$20,614
64DODElements Dogs of the Dow Total Return ETN164,795$20,801
65IFEUiShares FTSE/EPRA NAREIT Europe161,202$20,990
66ADZPowerShares DB Agriculture Short ETN11600$22,377
67CSDClaymore/Clear Spin-Off ETF272,005$22,587
68SZGSPA MarketGrader Large Cap 100171,911$23,923
69DOYMacroShares $100 Oil Down82,979$24,493
70PNXQPowerShares Nasdaq Next Q111,658$25,920
71IPWSPDR S&P International Energy71,421$26,045
72DPCWisdomTree International Consumer Cyclical292,074$26,394
73PEFPowerShares FTSE RAFI Europe201,305$28,164
74AGFPowerShares DB Agriculture Long ETN111,805$28,433
75IRVSPDR S&P International Materials71,984$28,688
76PXQPowerShares Dynamic Networking452,779$28,871
77FABFirst Trust Multi Cap Value AlphaDEX222,058$29,164
78MZGClaymore/Mrngstr Manufact. SuperSector191,995$31,010
79GRICohen & Steers Global Realty Majors101,658$31,155
80FXOFirst Trust Financials AlphaDex224,195$31,188
81IPSSPDR S&P International Consumer Staples71,632$31,402
82FXRFirst Trust Industrials AlphaDex223,400$31,778
83RCDRydex S&P Equal Weight Cons Discret281,726$32,572
84TDNTDX Independence 2030172,332$33,564
85CZAClaymore/Zacks Mid-Cap Core ETF232,200$34,009
86JJMiPath DJ AIG Industrial Metals ETN161,658$35,022
87OTPClaymore/Ocean Tomo Patent272,274$36,490
88GRNiPath Global Carbon ETN81,926$36,559
89ICNWisdomTree Dreyfus Indian Rupe101,611$36,753
90NUCLiShares S&P Global Nuclear Energy81,268$37,197
91PAOPowerShares Auto Balanced Growth NFA94,326$37,294
92MDDSPDR S&P International Mid Cap102,100$38,166
93RHSRydex S&P Equal Weight Cons Staples281,011$38,657
94LVLClaymore/BBD High Income204,700$38,688
95PLKPowerShares Active Low Duration111,558$38,748
96DEFClaymore/Sabrient Defender272,453$39,411
97BDHHOLDRS Broadband ETF1084,921$40,197
98RZGRydex S&P Smallcap 600 Pure Growth361,695$40,596
99FYXFirst Trust Small Cap Core AlphaDEX222,837$41,071
100DRFWisdomTree International Financial294,926$42,555
101MESMarket Vectors Gulf States72,884$43,563
102FXGFirst Trust Consumer Staples AlphaDex223,263$44,234
103FGDFirst Trust DJ Global Select Dividend153,868$44,389
104GRUElements MLCX Grains Total Return ETN137,526$44,454
105IFSMiShares FTSE Dev Small Cap ex-N. Amer162,221$44,715
106FADFirst Trust Multi Cap Growth AlphaDEX222,605$44,720
107FVIFirst Trust Value Line Equity Allocation273,968$44,799
108IROClaymore/Zacks Dividend Rotation163,884$44,855
109EMVSPDR DJ Wilshire Mid Cap Value401,500$45,654
110IFASiShares FTSE EPRA/NAREIT Asia162,616$46,876
111ISTSPDR S&P International Telecom72,589$47,236
112MZOClaymore/Mrngstr Services SuperSector193,737$47,520
113FXNFirst Trust Energy AlphaDex224,700$47,871
114PRYPowerShares FTSE RAFI Intl. Real Estate145,347$48,356
115NFOClaymore/Sabrient Insider303,137$48,751
116PHWPowerShares Dynamic Hrdwr & Cons Elec396,689$49,376
117UBGE-TRACS CMCI Gold Total Return ETN111,868$49,433
118RYTRydex S&P Equal Weight Technology281,879$50,019
119USVE-TRACS CMCI Silver Total Return ETN112,558$50,049
120IPFSPDR S&P International Financial74,316$50,105
121PQZPowerShares Active Alpha Multi-Cap114,100$50,660
122AFKMarket Vectors Africa ETF82,868$52,375
123WMHHOLDRS Wireless1011,463$53,087
124GULFWisdomTree Middle East Dividend84,620$53,535
125FEXFirst Trust Large Cap Core AlphaDEX223,737$55,539
126PIEPowerShares DWA Emg Mkts Tech Ldrs146,858$55,747
127RTMRydex S&P Equal Weight Materials282,005$55,958
128INYSPDR Barclays New York Muni Bond172,674$56,521
129DFEWisdomTree Europe SmallCap Dividend332,500$56,907
130EXBClaymore/Clear Global Exchanges & Brokers207,495$59,049
131PQBWPowerShares Nasdaq 100 Buy/Write93,571$59,243
132PTOPowerShares Auto Growth NFA97,574$59,702
133PBSPowerShares Dynamic Media459,416$62,907
134UOYMacroShares $100 Oil Up818,316$63,528
135PHJPowerShares High Gr. Rate Div Achievers428,226$64,424
136FXZFirst Trust Materials AlphaDex226,874$65,720
137JJSiPath DJ AIG Softs ETN81,832$66,501
138BALiPath DJ-AIG Cotton ETN82,332$66,552
139BDDPowerShares DB Base Metals Dbl Lg ETN913,068$66,680
140EWXSPDR S&P Emerging Mkts Small Cap102,974$67,322
141PAFPowerShares FTSE RAFI Asia Pac Ex-Japan202,763$67,405
142QQXTFirst Trust Nasdaq-100 Ex-Technology255,974$67,895
143EEZWisdomTree Earnings Top 100 Fund252,768$69,697
144PMNAPowerShares MENA Frontier Countries87,012$70,532
145QTECFT Nasdaq 100 Technology356,200$70,861
146RJZElements Rogers Metals ETN1712,063$71,338
147PQSCPowerShares FTSE Nasdaq Small Cap114,863$71,789
148PXNPowerShares Dynamic Lux Nanotech4110,689$73,238
149ICIiPath Optimized Currency Carry ETN111,684$73,293
150RTWRydex Inverse 2x S&P Technology81,426$75,007
151JJUiPath DJ AIG Aluminum ETN83,842$76,325
152DEBWisdomTree Europe Total Dividend332,553$77,290
153FDMFirst Trust DJ Select Microcap426,311$77,782
154PKNPowerShares Global Nuclear Energy115,811$78,147
155DNHWisdomTree Pacific Ex-Jap HY Equity333,058$81,208
156QQEWFirst Trust Nasdaq 100 Equal Weighted356,767$81,301
157DEWWisdomTree Europe High-Yielding Equity333,011$81,727
158EROiPath EUR/USD Exchange Rate ETN221,679$83,708
159DPNWisdomTree International Consumer Non-Cycl294,958$83,841
160RTGRydex 2x S&P Technology93,421$83,957
161ADRUBLDRS Europe 100 ADR775,837$85,979
162JJEiPath DJ AIG Energy ETN163,932$86,636
163RYFRydex S&P Equal Weight Financial286,526$88,364
164PVMPowerShares Dynamic Deep Value275,853$88,625
165PIZPowerShares DWA Dev Mkts Tech Ldrs147,584$89,103
166JJNiPath DJ AIG Nickel ETN165,942$90,365
167EXTWisdomTree Total Earnings253,263$90,515
168LDiPath DJ AIG Lead ETN83,089$92,472
169JYFWisdomTree Dreyfus Japan Yen93,342$94,662
170RWJRevenueShares Small Cap126,468$97,782
171PKWPowerShares Buyback Achievers276,842$98,163

Disclosure:  no positions.

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