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:

  1. 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.
  2. 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.