The number of ETFs on Deathwatch continues to grow as we enter 2009.  My current list contains 139 names: 97 ETFs and 42 ETNs.  The list includes any ETF/ETN that is at least six months old and had an Average Daily Value Traded of less than $100,000 in December.

Exchange Trade Notes are suffering from concerns of default risk.  The Lehman Brothers bankruptcy, which resulted in the demise of three ETNs, is causing investors to hesitate before throwing money into these products.  Unless ETN sponsors to take steps to calm investor fears, their representation on the list is likely to grow in the coming months.

NETS PSI 20 Index Fund (LIS) tops the list for the second month in a row.  It is an ETF designed to track the performance of the PSI 20 Index of Lisbon, Portugal.  Total volume for the month of December was 900 shares.  Although this represents a huge percentage increase from the 211 shares traded in November, it wasn’t enough to improve the fund’s ranking.

NETS has 15 ETFs that track single-country stock exchanges.  Unfortunately, 12 of them are on deathwatch today, and the other three just barely escaped.  In most cases, these are unique and potentially great products.  However, investors don’t seem to know they exist.  If they are to have a chance at surviving, NETS needs to step up their marketing efforts.

The SPA MarketGrader products are in huge trouble.  They have a total of six ETFs and all six of them are on deathwatch.  Once again, these are potentially good products, but marketing efforts have failed to attract any attention.

ETRACS is another group in dire straights with nine of their ten products on the list this month.  ETRACS also has to overcome ETN credit concerns since all ten of their offerings are ETNs.  The Elements offerings are in a similar situation.  All their products are ETNs also, and ten are on deathwatch this month.

XShares continues to struggle.  They shut down all 26 of their HealthShares and Adelante Real Estate Shares in 2008.  The have four remaining products under the TDAX brand, three of which are on our list.  Claymore also saw a large number of ETF closures in 2008 yet has another 19 on the list this month.

The reason for so many products being on the list is simple – too many arrived too quickly for the market to absorb.  For the most part, these products are not suffering from poor design;  they are suffering from investor overload and marketing failures.  There will be a day in the future when 1,000 ETFs are not enough.  For now, 800 is proving to be far too many.  There will be further casualties.

Note:  The dubious distinction of being included on the list below is reserved for U.S. listed ETFs and ETNs that have been available for at least six months, and their Average Daily Value Traded (ADVT) for the most recent calendar month was less than $100,000 per day.

ETF Deathwatch January 2009

 

Rank Ticker Name Age (mths) Avg Daily Volume Avg Daily Value Traded
1 LIS NETS PSI 20 Index (Portugal) 7 41 $503
2 MZN Claymore/Mrngstr Inform. SuperSector 17 68 $1,007
3 UBM E-TRACS UBS Blmbrg CMCI Ind Met. ETN 9 95 $1,100
4 IQE NETS ISEQ 20 Index (Ireland) 7 164 $1,707
5 UCI E-TRACS UBS Blmbrg CMCI Index ETN 9 159 $2,211
6 PTD E-TRACS UBS Short Platinum ETN 8 68 $2,734
7 GWO Elements CS Global Warming ETN 9 595 $2,734
8 UBN E-TRACS UBS Blmbrg CMCI Energy ETN 9 209 $2,810
9 JNB NETS FTSE/JSE Top 40 Index (So. Africa) 8 255 $2,964
10 SIH SPA MarketGrader 100 15 259 $2,983
11 MZO Claymore/Mrngstr Services SuperSector 17 209 $3,043
12 ITL NETS S&P;/MIB Index (Italy) 8 305 $3,776
13 FUE Elements MLCX Biofuels ETN 11 605 $3,795
14 LSO Elements MLCX Livestock ETN 9 464 $3,885
15 BDG PowerShares DB Base Metals Lng ETN 6 336 $4,166
16 BRU NETS BEL 20 Index (Belgium) 8 518 $5,578
17 LDN NETS FTSE 100 Index (London) 9 414 $5,596
18 JJU iPath DJ AIG Aluminum ETN 6 259 $6,118
19 PWD PowerShares FTSE RAFI Europe Small Mid 15 655 $6,841
20 JFT First Trust JPM Enh 130/30 Lrg Cap ETN 7 327 $6,949
21 UBC E-TRACS UBS Blmbrg CMCI Livestock ETN 9 355 $7,498
22 FRC NETS CAC 40 Index (France) 9 532 $7,597
23 INR Market Vectors Rupee/USD ETN 10 227 $7,903
24 JJS iPath DJ AIG Softs ETN 6 236 $8,184
25 AUS NETS S&P;/ASX 200 Index (Australia) 9 673 $8,356
26 FUD E-TRACS UBS Blmbrg CMCI Food ETN 9 541 $9,818
27 BHH HOLDRS B2B Internet ETF 108 42,705 $10,118
28 GOE Elements MLCX Gold ETN 9 1,145 $10,283
29 IRO Claymore/Zacks Dividend Rotation 15 777 $10,294
30 PHW PowerShares Dynamic Hrdwr & Cons Elec 37 1,282 $10,786
31 RHO Rydex Inverse 2x S&P; Health Care 7 145 $10,881
32 USV E-TRACS UBS Blmbrg CMCI Silver ETN 9 750 $11,075
33 GCE Claymore/CEF GS Connect ETN 13 995 $11,091
34 EEH Elements Spec LgCap US Sector Mo ETN 17 1,895 $12,398
35 TYI NETS TOPIX Index (Japan) 9 709 $13,205
36 UBD Claymore U.S. Capital Markets Bond ETF 11 300 $14,294
37 PLK PowerShares Active Low Duration 9 573 $14,461
38 SNB SPA MarketGrader 200 15 1,295 $15,389
39 FXR First Trust Industrials AlphaDex 20 1,614 $15,596
40 SZR WisdomTree Dreyfus S. African Rand 6 764 $15,811
41 EEN Claymore/Robeco Developed Intl Equity 22 1,268 $16,480
42 IIH HOLDRS Internet Infrastructure 108 8,595 $16,844
43 UAG E-TRACS UBS Blmbrg CMCI Agric. ETN 9 1,036 $17,803
44 UBG E-TRACS UBS Blmbrg CMCI Gold ETN 9 800 $18,699
45 SZG SPA MarketGrader Large Cap 100 15 1,518 $18,755
46 BJK Market Vectors Gaming ETF 11 1,145 $18,784
47 GRU Elements MLCX Grains Total Return ETN 11 3,445 $19,707
48 SGT NETS FTSE Singapore Straits Times Index 8 1,555 $20,185
49 PEH PowerShares Dynamic Europe Portfolio 19 2,086 $20,380
50 PMY Elements MLCX Precious Metals ETN 9 3,059 $20,650
51 RTL iShares FTSE NAREIT Retail 20 1,268 $20,937
52 JJT iPath DJ AIG Tin ETN 6 859 $21,433
53 DPC WisdomTree Intl Consumer Cyclical 27 1,441 $21,440
54 ROB Claymore/Robb Report Global Luxury 17 1,905 $21,486
55 JEM Barclays GEMS Currency Index ETN 9 536 $22,222
56 WMW Elements Mrngstr Wide Moat Focus ETN 15 3,627 $24,381
57 BNZ WisdomTree Dreyfus New Zealand Dollar 6 1,291 $24,893
58 GBB iPath GBP/USD Exchange Rate ETN 20 636 $25,590
59 UEM Claymore U.S.-1-The Capital Markets 11 668 $26,542
60 XGC Claymore/Great Companies Lg-Cap Growth 21 2,173 $26,891
61 PQSC PowerShares FTSE Nasdaq Small Cap 9 1,723 $26,941
62 FXD First Trust Cons Discretionary AlphaDex 20 3,032 $27,406
63 PNQI PowerShares Nasdaq Internet 7 2,191 $27,999
64 SSK SPA MarketGrader Small Cap 100 15 2,323 $28,136
65 IFEU iShares FTSE/EPRA NAREIT Europe 14 1,345 $28,548
66 PEF PowerShares FTSE RAFI Europe 19 1,282 $31,637
67 FDD First Trust DJ STOXX Select Dividend 30 16 3,077 $33,013
68 STH Claymore/Sabrient Stealth 28 2,614 $33,139
69 JJN iPath DJ AIG Nickel ETN 15 2,227 $34,069
70 RTG Rydex 2x S&P; Technology 7 1,405 $35,296
71 BAL iPath DJ-AIG Cotton ETN 6 1,350 $35,850
72 PXQ PowerShares Dynamic Networking 43 3,527 $36,518
73 FNX First Trust Mid Cap Core AlphaDEX 20 2,205 $36,800
74 RFV Rydex S&P; Midcap 400 Pure Value 34 2,114 $37,018
75 PRFM PowerShares FTSE RAFI Basic Materials 28 1,145 $37,249
76 DBT WisdomTree Intl Technology 27 2,636 $37,794
77 SVD SPA MarketGrader Mid Cap 100 15 3,250 $38,248
78 RTM Rydex S&P; Equal Weight Materials 26 1,245 $38,475
79 JO iPath DJ AIG Coffee ETN 6 1,145 $39,912
80 JJM iPath DJ AIG Industrial Metals ETN 14 1,827 $40,110
81 CSD Claymore/Clear Spin-Off ETF 25 3,586 $40,707
82 SGG iPath DJ AIG Sugar ETN 6 1,036 $40,908
83 FAD First Trust Multi Cap Growth AlphaDEX 20 2,309 $41,102
84 EXB Claymore/Clear Global Exchanges & Brokers 18 4,382 $41,883
85 PRFG PowerShares FTSE RAFI Consumer Goods 28 1,395 $43,150
86 OTR Claymore/Ocean Tomo Growth 21 2,809 $43,917
87 FXL First Trust Technology AlphaDex 20 4,509 $45,250
88 DPU DB Commodity Long ETN 8 3,418 $46,141
89 PQY PowerShares Active AlphaQ 9 3,014 $47,237
90 DAX NETS DAX Index (Germany) 9 3,191 $47,405
91 GRN iPath Global Carbon ETN 6 1,673 $48,053
92 DOD Elements Dogs of the Dow Total Return ETN 14 8,173 $48,643
93 JJP iPath DJ AIG Precious Metals ETN 6 1,186 $51,068
94 MZG Claymore/Mrngstr Manufact. SuperSector 17 3,159 $51,117
95 PDQ PowerShares Asia Pacific ex-Jpn Small-Mid 15 5,132 $52,450
96 FPX First Trust IPOX-100 Index Fund 33 4,186 $55,416
97 LD iPath DJ AIG Lead ETN 6 2,118 $55,611
98 BDD PowerShares DB Base Metals Dbl Lg ETN 7 10,973 $55,823
99 OTP Claymore/Ocean Tomo Patent 25 3,223 $56,391
100 BDH HOLDRS Broadband ETF 106 7,168 $57,558
101 FIO iShares FTSE NAREIT Industrial Office 20 3,632 $59,652
102 CRO Claymore/Zacks Country Rotation 18 4,623 $60,036
103 PTJ PowerShares Dynamic Healthcare Services 27 3,950 $62,438
104 CZA Claymore/Zacks Mid-Cap Core ETF 21 4,055 $63,032
105 RHM Rydex 2x S&P; Health Care 7 1,432 $63,290
106 SFV SPA MarketGrader 40 15 5,955 $63,938
107 NFO Claymore/Sabrient Insider 28 3,945 $66,038
108 QQXT First Trust Nasdaq-100 Ex-Technology 23 5,709 $66,828
109 NUCL iShares S&P; Global Nuclear Energy 6 2,405 $67,337
110 FYX First Trust Small Cap Core AlphaDEX 20 4,364 $69,483
111 FVI First Trust Value Line Equity Allocation 57 5,686 $70,838
112 SNO NETS Hang Seng China Enterprises Index 8 4,714 $71,129
113 PHJ PowerShares High Gr. Rate Div Achievers 40 7,695 $72,033
114 IFNA iShares FTSE NAREIT North America 14 2,968 $74,281
115 TDN TDAX Independence 2030 15 4,705 $75,163
116 TDD TDAX Independence 2010 15 3,477 $76,315
117 FGD First Trust DJ Global Select Dividend 13 5,814 $78,735
118 TDH TDAX Independence 2020 15 4,373 $79,906
119 USY WisdomTree US Current Income 8 3,227 $80,364
120 ADZ DB Agriculture Short ETN 9 2,145 $83,313
121 FXG First Trust Consumer Staples AlphaDex 20 6,159 $83,890
122 RZG Rydex S&P; Smallcap 600 Pure Growth 34 3,218 $84,231
123 QTEC FT Nasdaq 100 Technology 33 7,395 $85,095
124 RWJ RevenueShares Small Cap 10 5,218 $85,366
125 PVM PowerShares Dynamic Deep Value 25 5,195 $85,521
126 INY SPDR Lehman New York Muni Bond 15 4,441 $85,788
127 NIB iPath DJ AIG Cocoa ETN 6 2,186 $85,889
128 RGI Rydex S&P; Equal Weight Industrials 26 2,659 $89,093
129 PRY PowerShares FTSE RAFI Intl Real Estate 12 8,223 $91,446
130 BWV iPath CBOE S&P; 500 BuyWrite Index ETN 20 2,614 $91,700
131 TDX TDAX Independence In-Target 15 3,827 $93,262
132 RJZ Elements Rogers Metals ETN 15 16,845 $93,643
133 AGF DB Agriculture Long ETN 9 5,923 $96,739
134 PEJ PowerShares Dynamic Leisure & Enter 43 11,195 $97,351
135 RWK RevenueShares Mid Cap 10 6,509 $97,516
136 EEZ WisdomTree Earnings Top 100 Fund 23 3,745 $98,086
137 LVL Claymore/BBD High Income 19 10,705 $98,864
138 PGZ PowerShares Dyn Aggressive Growth 25 6,155 $99,480
139 PQBW PowerShares Nasdaq 100 Buy/Write 7 6,336 $99,853
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