The number of exchange-traded products (ETPs) on ETF Deathwatch fell again this month. The count now stands at just 86 (56 ETFs and 30 ETNs), the lowest level since the November 2008 ETF Deathwatch list.
Does this mean the ETF industry is at full health? I’m not ready to jump to that conclusion for a couple of reasons. First, our list is based on trading activity, and and trading activity across the entire ETF spectrum was up +57% last month. If you assume that all ETFs had a 57% increase in trading, then only 66 of the 99 names on the May ETF Deathwatch list would have carried over to this month.
Second, the closing of 12 leveraged ETFs from Rydex means fewer products were eligible this month. Third, 116 new ETFs and ETNs came out in the last six months that are currently excluded from eligibility. Many of those products will find their way to this list in the next few months.
I think this all adds up to a temporary decline in the number of products on the list. My guess is that the Deathwatch list will be back up in triple digits before the summer is over.
There were 28 new funds launched last November, and now that they are at least six months old, they have lost their Deathwatch immunity. It appears to have been a pretty good crop because 26 of the 28 managed to avoid the list. The two that entered Deathwatch status are PIMCO 3-7 Year U.S. Treasury Index ETF (FIVZ) and TXF Large Companies ETF (TXF).
Many observers may be surprised that PIMCO now has two products on ETF Deathwatch: FIVZ and TENZ. Both are adorned with the PIMCO name and both represent widely followed benchmark bond categories. So what went wrong? In a word, the problem is marketing. PIMCO 7-15 Year U.S. Treasury Index Fund (TENZ) was launched more than eight months ago, but PIMCO has never announced this product – not even a press release. If they are counting on a “build it, they will come” asset-gathering approach, they may need to rethink that plan.
Meanwhile, no one who has read this column before should be surprised that E-TRACS ETNs are again occupying the top three slots this month. E-TRACS CMCI Short Platinum Excess Return ETN (PTD) takes top honors. According to my data sources, there was only a single trade in PTD all month – 100 shares changed hands on May 7. Another data source I use shows zero volume for the month.
Listed below are the 68 products on ETF Deathwatch for June that failed to generate at least $100,000 in average daily value traded (ADVT) during the past month.
ETF DEATHWATCH – JUNE 2010
| Rank | Ticker | Name | Age (mths) | Avg Daily Volume | Avg Daily Value Traded |
|---|---|---|---|---|---|
| 1 | PTD | E-TRACS CMCI Short Platinum Exc Ret ETN | 25 | 5 | $150 |
| 2 | UBC | E-TRACS CMCI Livestock Total Return ETN | 26 | 125 | $2,501 |
| 3 | UBN | E-TRACS CMCI Energy Total Return ETN | 26 | 315 | $4,380 |
| 4 | RFF | Grail RP Financials ETF | 8 | 205 | $5,460 |
| 5 | JEM | Barclays GEMS Currency Index ETN | 28 | 130 | $5,603 |
| 6 | GBB | iPath GBP/USD Exchange Rate ETN | 37 | 145 | $5,781 |
| 7 | ADZ | PowerShares DB Agriculture Short ETN | 26 | 230 | $8,786 |
| 8 | BVT | Elements Ben Graham Total Mkt Value ETN | 22 | 880 | $9,130 |
| 9 | JYN | iPath JPY/USD Exchange Rate ETN | 37 | 155 | $10,060 |
| 10 | BHH | HOLDRS B2B Internet ETF | 125 | 21,433 | $10,768 |
| 11 | BVL | Elements Ben Graham Large Cap Value ETN | 22 | 1,345 | $11,114 |
| 12 | AGF | PowerShares DB Agriculture Long ETN | 26 | 840 | $11,903 |
| 13 | PGD | Barclays Asian&Gulf; Currency Reval. ETN | 24 | 245 | $12,245 |
| 14 | FUE | Elements MLCX Biofuels ETN | 28 | 1,845 | $13,049 |
| 15 | DOD | Elements Dogs of the Dow Total Return ETN | 31 | 1,825 | $13,225 |
| 16 | GWO | Elements CS Global Warming ETN | 26 | 2,650 | $16,612 |
| 17 | TXF | TXF Large Companies ETF | 7 | 465 | $16,752 |
| 18 | OOK | OOK, Inc. | 7 | 645 | $20,499 |
| 19 | DPU | PowerShares DB Commodity Long ETN | 25 | 1,480 | $21,788 |
| 20 | GVT | Grail American Beacon Large Cap Value | 13 | 690 | $21,861 |
| 21 | MKH | HOLDRS Merrill Lynch Market 2000+ | 119 | 480 | $22,373 |
| 22 | EEH | Elements Spec LgCap US Sector Mo ETN | 34 | 2,705 | $22,510 |
| 23 | USV | E-TRACS CMCI Silver Total Return ETN | 26 | 885 | $23,149 |
| 24 | EEN | Claymore/BNY Mellon EW Euro-Pacific LDRs | 40 | 1,415 | $23,828 |
| 25 | UBD | Claymore U.S. Capital Markets Bond ETF | 28 | 470 | $24,503 |
| 26 | PBTQ | PowerShares Global Biotech Portfolio | 21 | 1,070 | $25,017 |
| 27 | EXB | Claymore/Beacon Gbl Exch, Brkrs, & Asst Mgrs | 36 | 2,060 | $25,047 |
| 28 | RPX | Grail RP Growth ETF | 8 | 925 | $25,355 |
| 29 | TZD | iShares S&P; Target Date 2010 Index Fund | 19 | 880 | $25,574 |
| 30 | WMH | HOLDRS Wireless | 117 | 605 | $25,704 |
| 31 | PMA | PowerShares Active Mega-Cap Portfolio | 26 | 1,140 | $25,722 |
| 32 | UBM | E-TRACS CMCI Industrial Metals TR ETN | 26 | 1,415 | $27,295 |
| 33 | EKH | HOLDRS Europe 2001 | 114 | 495 | $27,339 |
| 34 | JJS | iPath DJ-UBS Softs ETN | 24 | 675 | $28,366 |
| 35 | TZO | iShares S&P; Target Date 2035 Index Fund | 19 | 950 | $28,458 |
| 36 | JYF | WisdomTree Dreyfus Japan Yen | 25 | 1,070 | $30,799 |
| 37 | JFT | First Trust Enhanced 130/30 Large Cap ETN | 25 | 1,207 | $35,633 |
| 38 | GRN | iPath Global Carbon ETN | 24 | 1,260 | $36,065 |
| 39 | TDD | TDX Independence 2010 | 32 | 1,595 | $36,920 |
| 40 | JVS | Javelin DJ Islamic Market International | 11 | 870 | $37,147 |
| 41 | RPQ | Grail RP Technology ETF | 8 | 1,305 | $37,655 |
| 42 | ULQ | Claymore U.S. Cap Mkts Micro-Trm Fxd Inc | 28 | 778 | $38,726 |
| 43 | BDH | HOLDRS Broadband ETF | 124 | 4,000 | $43,965 |
| 44 | FDD | First Trust DJ STOXX European Select Div | 34 | 3,950 | $46,216 |
| 45 | PQZ | PowerShares Active Alpha Multi-Cap | 26 | 3,020 | $50,633 |
| 46 | PJO | PowerShares FTSE RAFI Japan | 36 | 1,375 | $50,852 |
| 47 | TZE | iShares S&P; Target Date 2015 Index Fund | 19 | 1,725 | $50,957 |
| 48 | IWL | iShares Russell Top 200 Index Fund | 8 | 1,995 | $52,382 |
| 49 | PQSC | PowerShares FTSE Nasdaq Small Cap | 26 | 2,220 | $52,861 |
| 50 | DJCI | UBS E-TRACS DJ-UBS Commodity TR ETN | 7 | 210 | $53,586 |
| 51 | CRBA | Jefferies|TR/J CRB Global Agriculture Equity | 7 | 1,470 | $54,053 |
| 52 | TZG | iShares S&P; Target Date 2020 Index Fund | 19 | 1,860 | $55,654 |
| 53 | TZI | iShares S&P; Target Date 2025 Index Fund | 19 | 1,900 | $57,105 |
| 54 | PAO | PowerShares Auto Balanced Growth NFA | 25 | 5,210 | $58,117 |
| 55 | TENZ | PIMCO 7-15 Year U.S. Treasury Index Fund | 9 | 770 | $59,182 |
| 56 | BSC | Elements Ben Graham Small Cap Value ETN | 22 | 5,285 | $59,433 |
| 57 | BDG | PowerShares DB Base Metals Lng ETN | 24 | 2,890 | $59,723 |
| 58 | GRES | IQ ARB Global Resources ETF | 7 | 2,340 | $60,469 |
| 59 | LD | iPath DJ-UBS Lead ETN | 24 | 1,350 | $63,220 |
| 60 | RWG | Grail RP Focused Large Cap Growth ETF | 8 | 2,425 | $65,244 |
| 61 | FIVZ | PIMCO 3-7 Year U.S. Treasury Index ETF | 7 | 870 | $66,715 |
| 62 | PTRP | PowerShares Glb Progressive Transport. | 21 | 2,690 | $68,969 |
| 63 | UAG | E-TRACS CMCI Agriculture TR ETN | 26 | 3,825 | $70,290 |
| 64 | TGR | iShares S&P; Target Date Retirement Inc. | 19 | 2,545 | $71,925 |
| 65 | MCRO | IQ Hedge Macro Tracker ETF | 12 | 2,810 | $72,970 |
| 66 | PNXQ | PowerShares Nasdaq Next Q | 26 | 2,955 | $74,635 |
| 67 | DEF | Claymore/Sabrient Defender | 42 | 3,530 | $75,060 |
| 68 | ERO | iPath EUR/USD Exchange Rate ETN | 37 | 1,530 | $75,144 |
| 69 | UBG | E-TRACS CMCI Gold Total Return ETN | 26 | 2,305 | $77,353 |
| 70 | CRBI | Jefferies|TR/J CRB Global Ind Metals Equity | 7 | 2,145 | $79,983 |
| 71 | BWV | iPath CBOE S&P; 500 BuyWrite Index ETN | 37 | 1,880 | $81,047 |
| 72 | TDX | TDX Independence In-Target | 32 | 3,234 | $81,050 |
| 73 | FUD | E-TRACS CMCI Food Total Return ETN | 26 | 4,400 | $82,097 |
| 74 | TZL | iShares S&P; Target Date 2030 Index Fund | 19 | 2,790 | $82,713 |
| 75 | TDH | TDX Independence 2020 | 32 | 4,002 | $83,540 |
| 76 | PLK | PowerShares Active Low Duration | 26 | 3,315 | $84,045 |
| 77 | TWQ | ProShares UltraShort Russell3000 | 11 | 3,575 | $84,860 |
| 78 | RYU | Rydex S&P; Equal Weight Utilities | 43 | 1,900 | $85,761 |
| 79 | RWV | RevenueShares Navellier Overall A-100 | 16 | 2,740 | $86,230 |
| 80 | PZJ | PowerShares Zacks Small Cap | 52 | 4,535 | $87,514 |
| 81 | IPW | SPDR S&P; International Energy | 23 | 3,785 | $88,614 |
| 82 | TDN | TDX Independence 2030 | 32 | 4,831 | $88,872 |
| 83 | NUCL | iShares S&P; Global Nuclear Energy | 24 | 2,520 | $91,508 |
| 84 | IFEU | iShares FTSE EPRA/NAREIT Europe | 31 | 3,755 | $92,606 |
| 85 | IFNA | iShares FTSE NAREIT North America | 31 | 2,560 | $93,350 |
| 86 | XGC | Claymore/BNY Mellon Intl Small Cap LDRs | 38 | 5,225 | $97,928 |
Past issues of ETF Deathwatch are available here.
Disclosure covering writer, editor, and publisher: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.