The “official” number of exchange-traded products on Deathwatch dropped dramatically for September.  This month’s list contains just 118 names, a drop of nearly 17% from last month.

However, the “unofficial” number now stands at 179, a new record.  The difference between the official and unofficial count is the 61 commodity funds that aren’t already on the list.  At the present time, there are 88 US-listed ETFs and ETNs based on various commodity markets.  The CFTC appears to be upset that these newfangled vehicles are in its sandbox and is now taking steps to curtail such activity.

Recent regulatory activity generated concerns for agricultural and natural gas based funds.  Even when granted relief to issue more shares, some funds chose not to, presumably out of fear for the future.

Then, out of the blue on September 1, Deutsche Bank (DB) announced the impending closure of its popular PowerShares DB Crude Oil Double Long ETN (DXO).  DB claimed the redemption and closure is the result of a “regulatory event”, although there appear to be other factors at play.

If DXO ceases to exist, then is any commodity ETF or ETN safe?  At this time, the answer is not clear.  No one knows where regulators will draw the line.  Therefore, all 88 commodity funds are being added to the unofficial list.

Two fund families, E-TRACS and Elements, have already been on “whole family ETF Deathwatch” for many months since nearly all of their funds appear on the list month after month.  All of the E-TRACS and a large percentage of the Elements products are commodity based.  Therefore, I seriously question the ongoing viability of either of these two families.

The current “official” list consists of 84 ETFs and 34 ETNs that are at least six months old and failed to have an Average Daily Value Traded (ADVT) of at least $100,000 during August.  Although the total ETF value traded in August slipped from the July level, it appears activity picked up for some ETFs.

ETF DEATHWATCH – SEPTEMBER 2009

ETF DEATHWATCH – SEPTEMBER 2009

Rank Ticker Name Age (mths) Avg Daily Volume Avg Daily Value Traded
1 PTD E-TRACS CMCI Short Platinum Exc Ret ETN 16 14 $500
2 MZG Claymore/Mrngstr Manufact. SuperSector 25 33 $619
3 BVL Elements Ben Graham Large Cap Value ETN 13 100 $823
4 EEH Elements Spec LgCap US Sector Mo ETN 25 224 $1,648
5 RHO Rydex Inverse 2x S&P; Health Care 15 43 $1,748
6 MZO Claymore/Mrngstr Services SuperSector 25 129 $2,110
7 RTW Rydex Inverse 2x S&P; Technology 15 181 $4,499
8 PQSC PowerShares FTSE Nasdaq Small Cap 17 229 $4,632
9 TZD iShares S&P; Target Date 2010 Index Fund 10 171 $4,721
10 GWO Elements CS Global Warming ETN 17 895 $6,202
11 CZA Claymore/Zacks Mid-Cap Core ETF 29 314 $6,387
12 UEM Claymore U.S.-1-The Capital Markets 19 157 $6,409
13 JFT First Trust Enhanced 130/30 Large Cap ETN 16 290 $7,639
14 OTP Claymore/Ocean Tomo Patent 33 414 $8,485
15 AYT Barclays GEMS Asia 8 ETN 12 190 $8,556
16 USV E-TRACS CMCI Silver Total Return ETN 17 419 $8,782
17 TZL iShares S&P; Target Date 2030 Index Fund 10 324 $8,926
18 UAG E-TRACS CMCI Agriculture TR ETN 17 476 $9,654
19 UBN E-TRACS CMCI Energy Total Return ETN 17 671 $10,146
20 OTR Claymore/Ocean Tomo Growth 29 490 $10,272
21 MKH HOLDRS Merrill Lynch Market 2000+ 110 224 $10,303
22 BVT Elements Ben Graham Total Mkt Value ETN 13 1,243 $11,056
23 JJT iPath DJ AIG Tin ETN 14 352 $11,444
24 PGD Barclays Asian&Gulf; Currency Reval. ETN 15 248 $12,426
25 TZV iShares S&P; Target Date 2040 Index Fund 10 471 $12,955
26 MZN Claymore/Mrngstr Inform. SuperSector 25 690 $13,102
27 JEM Barclays GEMS Currency Index ETN 19 324 $13,957
28 FUE Elements MLCX Biofuels ETN 19 1,805 $14,108
29 BHH HOLDRS B2B Internet ETF 116 38,162 $14,791
30 CRO Claymore/Zacks Country Rotation 26 962 $14,848
31 JYF WisdomTree Dreyfus Japan Yen 16 557 $15,269
32 DEF Claymore/Sabrient Defender 33 795 $15,353
33 TZO iShares S&P; Target Date 2035 Index Fund 10 552 $15,395
34 UBC E-TRACS CMCI Livestock Total Return ETN 17 957 $16,047
35 PNXQ PowerShares Nasdaq Next Q 17 805 $16,228
36 CSD Claymore/Clear Spin-Off ETF 33 1,076 $17,195
37 FVI First Trust Value Line Equity Allocation 33 1,171 $17,488
38 IPS SPDR S&P; International Consumer Staples 13 719 $17,842
39 BSC Elements Ben Graham Small Cap Value ETN 13 1,938 $18,029
40 IIH HOLDRS Internet Infrastructure 116 9,114 $19,032
41 WMH HOLDRS Wireless 108 410 $19,038
42 TZG iShares S&P; Target Date 2020 Index Fund 10 738 $20,449
43 UBM E-TRACS CMCI Industrial Metals TR ETN 17 1,133 $20,544
44 IPN SPDR S&P; International Industrial 13 938 $20,597
45 IPD SPDR S&P; International Consumer Discr 13 948 $21,987
46 UCI E-TRACS CMCI Total Return ETN 17 1,248 $22,545
47 TGR iShares S&P; Target Date Retirement Inc. 10 886 $23,921
48 ROB Claymore/Robb Report Global Luxury 25 1,657 $25,818
49 FPX First Trust IPOX-100 Index Fund 41 1,510 $26,592
50 UBG E-TRACS CMCI Gold Total Return ETN 17 1,019 $26,604
51 AGF PowerShares DB Agriculture Long ETN 17 1,652 $27,605
52 STH Claymore/Sabrient Stealth 36 2,010 $28,643
53 INR Market Vectors Indian Rupee/USD ETN 18 810 $29,715
54 PBTQ PowerShares Global Biotech Portfolio 12 1,295 $29,838
55 DOD Elements Dogs of the Dow Total Return ETN 22 4,686 $29,984
56 TZI iShares S&P; Target Date 2025 Index Fund 10 1,105 $30,747
57 JYN iPath JPY/USD Exchange Rate ETN 28 505 $31,582
58 UBD Claymore U.S. Capital Markets Bond ETF 19 648 $32,071
59 XGC Claymore/BNY Mellon Intl Small Cap LDRs 29 1,914 $32,093
60 PQZ PowerShares Active Alpha Multi-Cap 17 2,119 $32,738
61 PMA PowerShares Active Mega-Cap Portfolio 17 1,738 $36,174
62 IRO Claymore/Zacks Dividend Rotation 23 2,210 $38,117
63 PQY PowerShares Active AlphaQ 17 1,976 $39,092
64 GRN iPath Global Carbon ETN 14 1,448 $39,787
65 WMW Elements Mrngstr Wide Moat Focus ETN 23 4,100 $39,858
66 GCE Claymore CEF Index GS Connect ETN 21 2,695 $40,675
67 RHM Rydex 2x S&P; Health Care 15 771 $41,762
68 TZE iShares S&P; Target Date 2015 Index Fund 10 1,514 $42,041
69 IRY SPDR S&P; International Health Care 13 1,600 $43,166
70 IPU SPDR S&P; International Utilities 13 2,071 $44,660
71 PSTL PowerShares Global Steel Portfolio 11 2,462 $47,781
72 FXR First Trust Industrials AlphaDex 28 3,910 $49,315
73 FUD E-TRACS CMCI Food Total Return ETN 17 2,538 $50,829
74 EKH HOLDRS Europe 2001 105 929 $50,865
75 REC Rydex Inverse 2x S&P; Energy 15 7,086 $51,212
76 JPP SPDR Russell/Nomura PRIME Japan 34 1,362 $51,747
77 DPU PowerShares DB Commodity Long ETN 16 3,629 $52,834
78 RGI Rydex S&P; Equal Weight Industrials 34 1,376 $53,264
79 ROI WisdomTree LargeCap Growth 9 1,724 $54,145
80 EU WisdomTree Dreyfus Euro 16 2,505 $57,929
81 FTC First Trust Large Cap Growth Op AlphaDEX 28 2,857 $58,230
82 PKW PowerShares Buyback Achievers 33 3,152 $58,756
83 BDH HOLDRS Broadband ETF 114 4,905 $59,470
84 QQXT First Trust Nasdaq-100 Ex-Technology 31 3,786 $59,771
85 PAO PowerShares Auto Balanced Growth NFA 16 5,910 $62,098
86 PNQI PowerShares Nasdaq Internet 15 2,967 $62,974
87 FDD First Trust DJ STOXX Select Dividend 30 24 5,014 $64,171
88 TDD TDX Independence 2010 23 2,900 $66,095
89 TDV TDX Independence 2040 23 4,005 $68,061
90 EEN Claymore/Robeco Developed Intl Equity 30 4,019 $68,650
91 TLL ProShares UltraShort Telecom 17 2,667 $68,870
92 MBG SPDR Barclays Mortgage Backed Bond ETF 7 2,614 $69,031
93 PJO PowerShares FTSE RAFI Japan 27 1,810 $69,374
94 PTRP PowerShares Glb Progressive Transport. 12 2,910 $70,469
95 PIQ PowerShares Dynamic Magniquant 35 3,824 $71,389
96 FAB First Trust Multi Cap Value AlphaDEX 28 3,414 $71,738
97 XRU CurrencyShares Russian Ruble Shares 10 2,305 $72,123
98 RHS Rydex S&P; Equal Weight Cons Staples 34 1,610 $72,896
99 JJP iPath DJ AIG Precious Metals ETN 14 1,471 $73,208
100 FAD First Trust Multi Cap Growth AlphaDEX 28 3,481 $74,097
101 ADZ PowerShares DB Agriculture Short ETN 17 2,252 $74,852
102 SJL ProShares UltraShort Russell Midcap Value 31 2,086 $77,465
103 RYU Rydex S&P; Equal Weight Utilities 34 1,838 $78,799
104 PTE PowerShares Dynamic Telecom & Wireless 45 6,771 $79,573
105 FXG First Trust Consumer Staples AlphaDex 28 4,838 $79,644
106 ERO iPath EUR/USD Exchange Rate ETN 28 1,443 $79,901
107 CNY Market Vectors Chinese Renminbi/USD ETN 18 2,024 $81,767
108 FXD First Trust Cons Discretionary AlphaDex 28 6,329 $84,554
109 EXB Claymore/Clear Global Exchanges & Brokers 27 6,738 $88,537
110 XRO Claymore/Zacks Sector Rotation 36 4,895 $88,835
111 SZR WisdomTree Dreyfus S. African Rand 14 3,367 $88,975
112 PKN PowerShares Global Nuclear Energy 17 5,000 $92,509
113 IFNA iShares FTSE NAREIT North America 22 3,438 $94,183
114 GBB iPath GBP/USD Exchange Rate ETN 28 2,105 $94,220
115 TDX TDX Independence In-Target 23 3,876 $96,328
116 ADRU BLDRS Europe 100 ADR 83 4,881 $97,203
117 RMS Rydex Inverse 2x S&P; MidCap 400 22 2,467 $98,914
118 DDP PowerShares DB Commodity Short ETN 16 2,367 $99,287

Disclosure: no positions