The number of exchange-traded products on Deathwatch surged to 153 this month, not including the 17 closures already announced for February. The current list consists of 120 ETFs and 33 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 January.
In our January issue, we highlighted a few sponsors that were having trouble attracting assets for their ETF lineups. Northern Trust headed that list, and they recently announced plans to exit the ETF business and liquidate all 17 of their ETFs. February 9, 2009 will be the last day of trading for the NETS ETFs. Due to their impending closure, they are not included in this month’s list.
Other sponsors likely to exit the business include:
- SPA MarketGrader: All six SPA ETFs are on deathwatch. According to Morningstar, the SPA products only have $12 million in combined assets. Look for SPA to exit the ETF business soon.
- E-TRACS: Nine out of ten E-TRACS products are on deathwatch. All of their offerings are ETNs, which have their own set of concerns. None has attracted more than $10 million in assets according to Morningstar. However, one of them, E-TRACS CMCI Long Platinum Total Return ETN (PTM), is trading more than $1.3 million per day, suggesting that its assets may be much higher. Perhaps E-TRACS can sell PTM to another sponsor before shutting down the others.
SPDR S&P International Consumer Discretionary (IPD) heads up this month’s Deathwatch list. Only two trades took place in IPD in January – one for a 100 shares and another for 200 shares. The other 18 trading days during the month combined for a total volume of zero. We believe international sector ETFs are needed and hope they start attracting more interest from traders and investors.
A new trend developing on our deathwatch list is the inclusion more “older” ETFs. Fourteen of the funds on the list have been around for more than three years. Six of the Merrill Lynch HOLDRS on the list were launched more than eight years ago. HOLDRS have numerous shortcomings versus more traditional ETF products. However, eight years ago, they had little competition, and traders flocked to them despite those shortcomings.
Even though trading interest in HOLDRS has waned, they continue to hold a large amount of assets. With their marketing and distribution costs recovered long ago, we don’t expect these funds to close anytime soon. However, even long-term investors are likely to have unrealized losses. Anyone holding these ETFs should consider harvesting those losses and moving into better-designed funds.
ETF DEATHWATCH – FEBRUARY 2009
| Rank | Ticker | Name | Age (mths) | Avg Daily Volume | Avg Daily Value Traded |
|---|---|---|---|---|---|
| 1 | IPD | SPDR S&P; International Consumer Discr | 6 | 15 | $243 |
| 2 | MZO | Claymore/Mrngstr Services SuperSector | 18 | 25 | $343 |
| 3 | EEH | Elements Spec LgCap US Sector Mo ETN | 18 | 140 | $963 |
| 4 | SNB | SPA MarketGrader 200 | 16 | 115 | $1,366 |
| 5 | UBC | E-TRACS CMCI Livestock Total Return ETN | 10 | 75 | $1,515 |
| 6 | MZN | Claymore/Mrngstr Inform. SuperSector | 18 | 110 | $1,587 |
| 7 | OTR | Claymore/Ocean Tomo Growth | 22 | 135 | $2,226 |
| 8 | RHO | Rydex Inverse 2x S&P; Health Care | 8 | 40 | $2,312 |
| 9 | UBN | E-TRACS CMCI Energy Total Return ETN | 10 | 195 | $2,572 |
| 10 | MZG | Claymore/Mrngstr Manufact. SuperSector | 18 | 160 | $2,602 |
| 11 | ROB | Claymore/Robb Report Global Luxury | 18 | 370 | $3,903 |
| 12 | PWD | PowerShares FTSE RAFI Europe Small Mid | 16 | 405 | $4,141 |
| 13 | UBD | Claymore U.S. Capital Markets Bond ETF | 12 | 90 | $4,276 |
| 14 | BHH | HOLDRS B2B Internet ETF | 109 | 20,255 | $4,885 |
| 15 | IPK | SPDR S&P; International Technology | 6 | 285 | $4,951 |
| 16 | LSO | Elements MLCX Livestock ETN | 10 | 590 | $5,060 |
| 17 | INR | Market Vectors Indian Rupee/USD ETN | 11 | 155 | $5,372 |
| 18 | SIH | SPA MarketGrader 100 | 16 | 470 | $5,485 |
| 19 | SSK | SPA MarketGrader Small Cap 100 | 16 | 470 | $5,727 |
| 20 | IPN | SPDR S&P; International Industrial | 6 | 350 | $5,850 |
| 21 | JEM | Barclays GEMS Currency Index ETN | 12 | 155 | $6,170 |
| 22 | PQY | PowerShares Active AlphaQ | 10 | 410 | $6,410 |
| 23 | SVD | SPA MarketGrader Mid Cap 100 | 16 | 560 | $6,610 |
| 24 | PTD | E-TRACS CMCI Short Platinum Exc Ret ETN | 9 | 175 | $6,702 |
| 25 | USV | E-TRACS CMCI Silver Total Return ETN | 10 | 405 | $6,709 |
| 26 | GWO | Elements CS Global Warming ETN | 10 | 1,260 | $7,010 |
| 27 | IRO | Claymore/Zacks Dividend Rotation | 16 | 570 | $7,096 |
| 28 | PHW | PowerShares Dynamic Hrdwr & Cons Elec | 38 | 830 | $7,359 |
| 29 | SFV | SPA MarketGrader 40 | 16 | 825 | $8,783 |
| 30 | FUE | Elements MLCX Biofuels ETN | 12 | 1,460 | $10,054 |
| 31 | EEN | Claymore/Robeco Developed International Eq | 23 | 820 | $10,258 |
| 32 | FUD | E-TRACS CMCI Food Total Return ETN | 10 | 535 | $10,356 |
| 33 | STH | Claymore/Sabrient Stealth | 29 | 840 | $10,583 |
| 34 | UAG | E-TRACS CMCI Agriculture TR ETN | 10 | 560 | $11,042 |
| 35 | JFT | First Trust Enhanced 130/30 Large Cap ETN | 8 | 525 | $11,689 |
| 36 | GOE | Elements MLCX Gold ETN | 10 | 1,240 | $11,806 |
| 37 | JJU | iPath DJ AIG Aluminum ETN | 7 | 545 | $12,234 |
| 38 | IPS | SPDR S&P; International Consumer Staples | 6 | 580 | $12,454 |
| 39 | PNQI | PowerShares Nasdaq Internet | 8 | 1,040 | $13,999 |
| 40 | DBT | WisdomTree International Technology | 28 | 1,010 | $14,443 |
| 41 | SZG | SPA MarketGrader Large Cap 100 | 16 | 1,145 | $14,875 |
| 42 | BNZ | WisdomTree Dreyfus New Zealand Dollar | 7 | 825 | $14,970 |
| 43 | UBM | E-TRACS CMCI Industrial Metals TR ETN | 10 | 1,300 | $15,724 |
| 44 | CSD | Claymore/Clear Spin-Off ETF | 26 | 1,395 | $15,990 |
| 45 | OTP | Claymore/Ocean Tomo Patent | 26 | 960 | $16,754 |
| 46 | DPC | WisdomTree International Consumer Cyclical | 28 | 1,190 | $16,849 |
| 47 | UCI | E-TRACS CMCI Total Return ETN | 10 | 1,180 | $17,781 |
| 48 | FXD | First Trust Cons Discretionary AlphaDex | 21 | 1,975 | $18,392 |
| 49 | IIH | HOLDRS Internet Infrastructure | 109 | 10,620 | $19,927 |
| 50 | EKH | HOLDRS Europe 2001 | 98 | 420 | $20,026 |
| 51 | RHM | Rydex 2x S&P; Health Care | 8 | 430 | $21,053 |
| 52 | PEF | PowerShares FTSE RAFI Europe | 20 | 890 | $21,494 |
| 53 | PRFG | PowerShares FTSE RAFI Consumer Goods | 29 | 725 | $21,657 |
| 54 | PQBW | PowerShares Nasdaq 100 Buy/Write | 8 | 1,420 | $23,214 |
| 55 | FYX | First Trust Small Cap Core AlphaDEX | 21 | 1,465 | $23,534 |
| 56 | GCE | Claymore CEF Index GS Connect ETN | 14 | 2,035 | $23,734 |
| 57 | BJK | Market Vectors Gaming ETF | 12 | 1,380 | $23,930 |
| 58 | PEH | PowerShares Dynamic Europe Portfolio | 20 | 2,665 | $24,441 |
| 59 | PMY | Elements MLCX Precious Metals ETN | 10 | 3,515 | $25,697 |
| 60 | GRI | Cohen & Steers Global Realty Majors | 9 | 1,120 | $25,704 |
| 61 | JJT | iPath DJ AIG Tin ETN | 7 | 1,010 | $25,868 |
| 62 | BDH | HOLDRS Broadband ETF | 107 | 3,085 | $26,022 |
| 63 | SZR | WisdomTree Dreyfus S. African Rand | 7 | 1,295 | $26,240 |
| 64 | IFEU | iShares FTSE/EPRA NAREIT Europe | 15 | 1,205 | $26,466 |
| 65 | UEM | Claymore U.S.-1-The Capital Markets | 12 | 680 | $26,737 |
| 66 | EXB | Claymore/Clear Global Exchanges & Brokers | 19 | 3,105 | $27,051 |
| 67 | GRN | iPath Global Carbon ETN | 7 | 1,185 | $27,481 |
| 68 | EMV | SPDR DJ Wilshire Mid Cap Value | 39 | 820 | $27,516 |
| 69 | PDQ | PowerShares Asia Pacific ex-Jpn Small-Mid | 16 | 2,990 | $29,045 |
| 70 | FVI | First Trust Value Line Equity Allocation | 26 | 2,335 | $29,462 |
| 71 | PQZ | PowerShares Active Alpha Multi-Cap | 10 | 2,380 | $29,814 |
| 72 | BDG | PowerShares DB Base Metals Lng ETN | 8 | 2,235 | $29,856 |
| 73 | XGC | Claymore/Great Companies Lg-Cap Growth | 22 | 2,505 | $30,581 |
| 74 | UBG | E-TRACS CMCI Gold Total Return ETN | 10 | 1,280 | $30,706 |
| 75 | DOD | Elements Dogs of the Dow Total Return ETN | 15 | 5,705 | $31,776 |
| 76 | CZA | Claymore/Zacks Mid-Cap Core ETF | 22 | 2,015 | $33,337 |
| 77 | RTM | Rydex S&P; Equal Weight Materials | 27 | 1,090 | $33,805 |
| 78 | FDD | First Trust DJ STOXX Select Dividend 30 | 17 | 3,215 | $33,861 |
| 79 | RGI | Rydex S&P; Equal Weight Industrials | 27 | 1,020 | $34,662 |
| 80 | PMA | PowerShares Active Mega-Cap Portfolio | 10 | 2,000 | $35,225 |
| 81 | RTG | Rydex 2x S&P; Technology | 8 | 1,385 | $35,475 |
| 82 | PTJ | PowerShares Dynamic Healthcare Services | 28 | 2,210 | $36,297 |
| 83 | FRN | Claymore/BNY Mellon Frontier Markets | 8 | 3,205 | $37,962 |
| 84 | PAF | PowerShares FTSE RAFI Asia Pac Ex-Japan | 20 | 1,490 | $38,427 |
| 85 | MDD | SPDR S&P; International Mid Cap | 9 | 1,985 | $38,453 |
| 86 | RTL | iShares FTSE NAREIT Retail | 21 | 2,505 | $38,457 |
| 87 | GBB | iPath GBP/USD Exchange Rate ETN | 21 | 1,010 | $38,601 |
| 88 | PXQ | PowerShares Dynamic Networking | 44 | 3,575 | $39,549 |
| 89 | EWX | SPDR S&P; Emerging Mkts Small Cap | 9 | 1,670 | $40,408 |
| 90 | JJS | iPath DJ AIG Softs ETN | 7 | 1,110 | $40,944 |
| 91 | GRU | Elements MLCX Grains Total Return ETN | 12 | 6,740 | $42,525 |
| 92 | IRY | SPDR S&P; International Health Care | 6 | 1,730 | $42,556 |
| 93 | PAO | PowerShares Auto Balanced Growth NFA | 9 | 4,590 | $42,607 |
| 94 | IST | SPDR S&P; International Telecom | 6 | 2,175 | $43,646 |
| 95 | FXL | First Trust Technology AlphaDex | 21 | 4,055 | $43,666 |
| 96 | FNX | First Trust Mid Cap Core AlphaDEX | 21 | 2,545 | $44,069 |
| 97 | ERO | iPath EUR/USD Exchange Rate ETN | 21 | 890 | $45,598 |
| 98 | PHJ | PowerShares High Gr. Rate Div Achievers | 41 | 5,350 | $46,336 |
| 99 | FGD | First Trust DJ Global Select Dividend | 14 | 3,385 | $46,698 |
| 100 | JJM | iPath DJ AIG Industrial Metals ETN | 15 | 2,070 | $46,994 |
| 101 | ADZ | PowerShares DB Agriculture Short ETN | 10 | 1,445 | $50,002 |
| 102 | PLK | PowerShares Active Low Duration | 10 | 2,010 | $50,538 |
| 103 | CRO | Claymore/Zacks Country Rotation | 19 | 3,995 | $50,939 |
| 104 | FXO | First Trust Financials AlphaDex | 21 | 5,915 | $51,566 |
| 105 | IFAS | iShares FTSE EPRA/NAREIT Asia | 15 | 2,670 | $52,421 |
| 106 | DRF | WisdomTree International Financial | 28 | 5,330 | $53,055 |
| 107 | AGF | PowerShares DB Agriculture Long ETN | 10 | 3,175 | $53,404 |
| 108 | RWJ | RevenueShares Small Cap | 11 | 3,490 | $56,498 |
| 109 | INY | SPDR Barclays New York Muni Bond | 16 | 2,775 | $57,023 |
| 110 | FAD | First Trust Multi Cap Growth AlphaDEX | 21 | 3,230 | $58,229 |
| 111 | NFO | Claymore/Sabrient Insider | 29 | 3,380 | $58,515 |
| 112 | PDN | PowerShares Dev Markets ex-US Small-Mid | 16 | 4,515 | $59,335 |
| 113 | RYT | Rydex S&P; Equal Weight Technology | 27 | 2,220 | $61,356 |
| 114 | RCD | Rydex S&P; Equal Weight Cons Discret | 27 | 2,795 | $61,529 |
| 115 | MKH | HOLDRS Merrill Lynch Market 2000+ | 103 | 1,530 | $61,842 |
| 116 | FTC | First Trust Large Cap Gro. Opp AlphaDEX | 21 | 3,605 | $63,989 |
| 117 | IFSM | iShares FTSE Dev Small Cap ex-N. Amer | 15 | 2,910 | $64,806 |
| 118 | FPX | First Trust IPOX-100 Index Fund | 34 | 4,555 | $65,374 |
| 119 | EZM | WisdomTree Mid Cap Earnings | 24 | 2,260 | $66,015 |
| 120 | IPF | SPDR S&P; International Financial | 6 | 4,780 | $67,782 |
| 121 | PSJ | PowerShares Dynamic Software | 44 | 5,180 | $67,882 |
| 122 | FAB | First Trust Multi Cap Value AlphaDEX | 21 | 4,340 | $68,499 |
| 123 | QTEC | FT Nasdaq 100 Technology | 34 | 5,990 | $69,223 |
| 124 | QQXT | First Trust Nasdaq-100 Ex-Technology | 24 | 5,815 | $69,703 |
| 125 | PEZ | PowerShares Dynamic Cons Discretionary | 28 | 4,805 | $71,054 |
| 126 | WMW | Elements Mrngstr Wide Moat Focus ETN | 16 | 10,255 | $71,603 |
| 127 | IPW | SPDR S&P; International Energy | 6 | 3,665 | $71,721 |
| 128 | LVL | Claymore/BBD High Income | 20 | 7,795 | $71,941 |
| 129 | PJM | PowerShares Dynamic Small Cap | 26 | 4,850 | $72,085 |
| 130 | WOOD | iShares S&P; Global Timber & Forestry | 7 | 2,690 | $72,175 |
| 131 | PBS | PowerShares Dynamic Media | 44 | 10,110 | $72,995 |
| 132 | PUA | PowerShares Dynamic Asia Pacific | 20 | 6,290 | $76,337 |
| 133 | DDI | WisdomTree International Industrial | 28 | 5,260 | $77,218 |
| 134 | FXH | First Trust Health Care AlphaDex | 21 | 5,515 | $78,981 |
| 135 | IPU | SPDR S&P; International Utilities | 6 | 3,715 | $79,034 |
| 136 | EEZ | WisdomTree Earnings Top 100 Fund | 24 | 2,905 | $79,141 |
| 137 | WMH | HOLDRS Wireless | 100 | 2,130 | $81,200 |
| 138 | PJO | PowerShares FTSE RAFI Japan | 20 | 2,530 | $82,439 |
| 139 | RZG | Rydex S&P; Smallcap 600 Pure Growth | 35 | 3,360 | $82,765 |
| 140 | IFNA | iShares FTSE NAREIT North America | 15 | 3,685 | $83,859 |
| 141 | PTO | PowerShares Auto Growth NFA | 9 | 9,885 | $83,918 |
| 142 | JJP | iPath DJ AIG Precious Metals ETN | 7 | 1,930 | $84,656 |
| 143 | RWK | RevenueShares Mid Cap | 11 | 5,390 | $85,120 |
| 144 | ADRU | BLDRS Europe 100 ADR | 76 | 5,490 | $85,638 |
| 145 | QQEW | First Trust Nasdaq 100 Equal Weighted | 34 | 7,175 | $87,541 |
| 146 | ICN | WisdomTree Dreyfus Indian Rupe | 9 | 3,980 | $91,378 |
| 147 | PTE | PowerShares Dynamic Telecom & Wireless | 38 | 8,630 | $91,742 |
| 148 | FEX | First Trust Large Cap Core AlphaDEX | 21 | 5,545 | $92,223 |
| 149 | FXG | First Trust Consumer Staples AlphaDex | 21 | 6,770 | $94,268 |
| 150 | IRV | SPDR S&P; International Materials | 6 | 5,825 | $94,776 |
| 151 | ULQ | Claymore U.S. Cap Mkts Micro-Trm Fxd Inc | 12 | 1,950 | $97,321 |
| 152 | FXR | First Trust Industrials AlphaDex | 21 | 9,695 | $97,402 |
| 153 | PKW | PowerShares Buyback Achievers | 26 | 6,340 | $97,837 |
| © Copyright 2009 AllStarInvestor.com |
Note: The dubious distinction of being included on this list is reserved for U.S. listed ETFs and ETNs at least six months old and an Average Daily Value Traded (ADVT) for the most recent calendar month of less than $100,000 per day.