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ETF Deathwatch April 2017: Variable ETF Sponsor Patience

ETF Deathwatch for April had 28 additions and 21 exits. Only nine of the departing funds were due to improved health, while the other dozen joined the ranks of the “dearly departed.” The membership roll now stands at 466, consisting of 370 exchange-traded funds (“ETFs”) and 96 exchange-traded notes (“ETNs”).

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.

Some sponsors having little patience, pulling products off the market even before they reach 6 months of age. The CrowdInvest Wisdom (former ticker WIZE) is the most recent example, closing down on September 27, 2016, after only five months on the market. However, it does not hold the record for the shortest life span. That distinction goes to AccuShares S&P Crude Oil Up (former ticker OILU) and AccuShares S&P Crude Oil Down (former ticker OILD), which closed earlier the same month. This pair of teeter-totter ETFs lasted less than three months.

Other sponsors seem to be unduly optimistic. There are 15 ETFs and ETNs on Deathwatch this month that 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. Launched in November 2002, these two products have been on the market for more than 14 years and currently average about $17 million in assets.

Three of last month’s closures were of ETFs that were more than 8 years of age. WisdomTree pulled the plug on WisdomTree Australia & New Zealand Debt (AUNZ) and WisdomTree Indian Rupee Strategy (ICN), while Oppenheimer terminated the Oppenheimer ADR Revenue ETF (ADR), which it recently acquired from RevenueShares. It is never too late to close an ETF, especially ones that are subsidized.

The average asset level of the 466 zombie ETFs on ETF Deathwatch fell from $6.4 million to $6.3 million, and the quantity of products with less than $2 million in assets increased from 89 to 96. The average age fell from 47.8 to 47.5 months, and the number of products more than 5 years of age decreased from 174 to 171. There are 430 funds on this list with at least one zero-volume day during March. Additionally, 266 ETFs and ETNs did not trade on the last day of the month, including 13 that went the entire month without a trade.

Here is the Complete List of 466 ETFs and ETNs on ETF Deathwatch for April 2017 compiled using the objective ETF Deathwatch Criteria.

The 28 ETFs added to ETF Deathwatch for April:

  1. AdvisorShares KIM Korea Equity (KOR)
  2. Amplify YieldShares Prime 5 Dividend (PFV)
  3. C-Tracks Miller/Howard MLP Fundamental B ETN (MLPE)
  4. Deutsche X-trackers Japan JPX-Nikkei 400 Eq (JPN)
  5. Direxion Daily Natural Gas Related Bear 3x (GASX)
  6. Direxion Daily Silver Miners Index Bear 2x (DULL)
  7. Direxion Daily Silver Miners Index Bull 2x (SHNY)
  8. First Trust Nasdaq Food & Beverage (FTXG)
  9. First Trust Nasdaq Oil & Gas (FTXN)
  10. First Trust Nasdaq Pharmaceuticals (FTXH)
  11. First Trust Nasdaq Retail (FTXD)
  12. First Trust Nasdaq Transportation (FTXR)
  13. Franklin Liberty U.S. Low Volatility (FLLV)
  14. Global X FinTech Thematic (FINX)
  15. Global X Next Emerging & Frontier (EMFM)
  16. iSectors Post-MPT Growth (PMPT)
  17. iShares Currency Hedged MSCI Italy (HEWI)
  18. iShares Edge MSCI Min Vol Asia ex Japan (AXJV)
  19. PowerShares DWA Momentum & Low Vlty Rot (DWLV)
  20. ProShares K-1 Free Crude Oil Strategy (OILK)
  21. ProShares Short Euro (EUFX)
  22. ProShares UltraShort MSCI Japan (EWV)
  23. Recon Capital USA Managed Risk (USMR)
  24. SPDR S&P Internet (XWEB)
  25. VanEck Vectors AMT-Free 12-17 Year Municipal (ITML)
  26. VanEck Vectors AMT-Free 6-8 Year Municipal (ITMS)
  27. VictoryShares International Volatility Wtd (CIL)
  28. WisdomTree Europe Quality Dividend Growth (EUDG)

The 9 ETFs removed from ETF Deathwatch due to improved health:

  1. ARK Industrial Innovation (ARKQ)
  2. Columbia India Small Cap (SCIN)
  3. First Trust Canada AlphaDEX (FCAN)
  4. Global X SuperDividend Emerging Markets (SDEM)
  5. ProShares Ultra MSCI Mexico Capped IMI (UMX)
  6. Sit Rising Rate (RISE)
  7. SPDR EURO STOXX 50 Currency Hedged (HFEZ)
  8. United States Copper (CPER)
  9. VelocityShares VIX Tail Risk ETN (BSWN)

The 12 ETFs removed from ETF Deathwatch due to delisting:

  1. Elkhorn FTSE RAFI U.S. Equity Income (ELKU)
  2. Elkhorn S&P 500 Capital Expenditures (CAPX)
  3. Oppenheimer ADR Revenue (RTR)
  4. Oppenheimer Global Growth Revenue (RGRO)
  5. RBC S&P 500 Trend Allocator PR ETN (TALL)
  6. WisdomTree Australia & New Zealand Debt (AUNZ)
  7. WisdomTree Indian Rupee Strategy (ICN)
  8. WisdomTree International Hedged Equity (HDWM)
  9. WisdomTree International Hedged SmallCap Dividend (HDLS)
  10. WisdomTree Japan Hedged Tech Medical & Telecom (DXJT)
  11. WisdomTree Japan Quality Dividend Growth (JDG)
  12. WisdomTree Korea Hedged Equity (DXKW)

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.