The number of exchange-traded products on Deathwatch decreased for the third month in a row. This month’s list contains 150 names, down from 155 last month and down from the record high of 171 in March. The current list consists of 111 ETFs and 39 ETNs that are at least six months old and failed to have an Average Daily Value Traded (ADVT) of at least $100,000 during May.
E-TRACS CMCI Energy Total Return ETN (UBN) tops our list this month with an ADVT of $1,137 and an average daily volume of just 85 shares. Although there were 20 trading days in May, UBN only traded on seven of them. There are a total of nine E-TRACS products on Deathwatch this month – 90% of the entire E-TRACS product offering.
I have been predicting the closure of E-TRACS for a number of months, and now I have reason to believe the timing could be very soon. The Dow Jones-AIG Commodity Indexes recently changed to the Dow Jones-UBS Commodity Indexes, or DJ-UBSCI. What does that have to do with E-TRACS you ask? One of the problems with E-TRACS is that very few people know what company is behind these products. It happens to be UBS, a powerhouse in global markets. They probably would have been much more successful marketing them under the UBS brand rather than E-TRACS.
Many of the iPath commodity ETNS from Barclays are based on the former DJ-AIG indexes. It is just a matter of time before Barclays changes the names of these products to reflect the new UBS name. UBS will then get their name in front of ETF and ETN investors every day and will start collecting their share of the licensing fee. At that point I predict they will no longer be able to justify the continuing losses on the E-TRACS products. They do have one successful product: E-TRACS CMCI Long Platinum Total Return ETN (PTM). They just need to find a buyer for PTM in order to achieve a graceful exit from the E-TRACS product line.
PowerShares had the largest mass closing of ETFs in the history of the ETF industry last month. It was a step in the right direction, but they didn’t go far enough as they still have 26 products on ETF Deathwatch: 18 ETFs, seven ETNs, and one BLDR brand ETF. No other sponsor has so many failing products.
Claymore is no stranger to shutting down ETFs. They kicked off the record number of closures in 2008 with their decision to shut down eleven funds in February of that year. They currently have 20 products on the list in need of attention. Some, like Claymore U.S.-1-The Capital Markets (UEM), does not have a market maker and is quoted as having a bid/ask spread of more than 14% today.
The two MacroShares on the list are scheduled to close on June 25. Although technically not ETFs, they are tracked as such by most ETF watchers, including us.
Other sponsors with a large quantity of products or large percentage of their lineup on ETF Deathwatch include Elements with nine (representing 64% of their lineup), First Trust with 19 (49%), and WisdomTree with 15 (29%).
ETF DEATHWATCH – JUNE 2009
ETF DEATHWATCH – JUNE 2009
| Rank | Ticker | Name | Age (mths) | Avg Daily Volume | Avg Daily Value Traded |
|---|---|---|---|---|---|
| 1 | UBN | E-TRACS CMCI Energy Total Return ETN | 14 | 85 | $1,137 |
| 2 | MZN | Claymore/Mrngstr Inform. SuperSector | 22 | 80 | $1,314 |
| 3 | MZO | Claymore/Mrngstr Services SuperSector | 22 | 105 | $1,503 |
| 4 | BVL | Elements Ben Graham Large Cap Value ETN | 10 | 270 | $1,984 |
| 5 | PTD | E-TRACS CMCI Short Platinum Exc Ret ETN | 13 | 55 | $1,997 |
| 6 | GBB | iPath GBP/USD Exchange Rate ETN | 25 | 50 | $2,108 |
| 7 | MZG | Claymore/Mrngstr Manufact. SuperSector | 22 | 140 | $2,369 |
| 8 | EKH | HOLDRS Europe 2001 | 102 | 50 | $2,407 |
| 9 | EEH | Elements Spec LgCap US Sector Mo ETN | 22 | 405 | $2,674 |
| 10 | GWO | Elements CS Global Warming ETN | 14 | 490 | $2,712 |
| 11 | FVI | First Trust Value Line Equity Allocation | 30 | 335 | $4,467 |
| 12 | UBD | Claymore U.S. Capital Markets Bond ETF | 16 | 120 | $5,790 |
| 13 | INR | Market Vectors Indian Rupee/USD ETN | 15 | 175 | $6,461 |
| 14 | TZO | iShares S&P; Target Date 2035 Index Fund | 7 | 280 | $6,846 |
| 15 | ADZ | PowerShares DB Agriculture Short ETN | 14 | 225 | $7,371 |
| 16 | FUE | Elements MLCX Biofuels ETN | 16 | 930 | $7,394 |
| 17 | ROB | Claymore/Robb Report Global Luxury | 22 | 665 | $8,359 |
| 18 | UCI | E-TRACS CMCI Total Return ETN | 14 | 515 | $8,428 |
| 19 | AYT | Barclays GEMS Asia 8 ETN | 9 | 195 | $9,035 |
| 20 | MKH | HOLDRS Merrill Lynch Market 2000+ | 107 | 220 | $9,075 |
| 21 | JEM | Barclays GEMS Currency Index ETN | 16 | 220 | $9,125 |
| 22 | UBC | E-TRACS CMCI Livestock Total Return ETN | 14 | 480 | $9,266 |
| 23 | JJT | iPath DJ AIG Tin ETN | 11 | 295 | $9,297 |
| 24 | USV | E-TRACS CMCI Silver Total Return ETN | 14 | 465 | $9,725 |
| 25 | CZA | Claymore/Zacks Mid-Cap Core ETF | 26 | 545 | $9,728 |
| 26 | IPU | SPDR S&P; International Utilities | 10 | 505 | $9,872 |
| 27 | TZI | iShares S&P; Target Date 2025 Index Fund | 7 | 460 | $11,563 |
| 28 | PGD | Barclays Asian&Gulf; Currency Reval. ETN | 12 | 240 | $11,993 |
| 29 | TGR | iShares S&P; Target Date Retirement Inc. | 7 | 525 | $13,377 |
| 30 | IPN | SPDR S&P; International Industrial | 10 | 708 | $13,494 |
| 31 | BHH | HOLDRS B2B Internet ETF | 113 | 38100 | $13,571 |
| 32 | UEM | Claymore U.S.-1-The Capital Markets | 16 | 390 | $13,946 |
| 33 | DOY | MacroShares $100 Oil Down | 11 | 1,760 | $13,970 |
| 34 | PTRP | PowerShares Glb Progressive Transport. | 9 | 680 | $14,088 |
| 35 | UBG | E-TRACS CMCI Gold Total Return ETN | 14 | 550 | $14,099 |
| 36 | TZD | iShares S&P; Target Date 2010 Index Fund | 7 | 560 | $14,219 |
| 37 | BSC | Elements Ben Graham Small Cap Value ETN | 10 | 1,775 | $14,323 |
| 38 | IRY | SPDR S&P; International Health Care | 10 | 625 | $14,419 |
| 39 | IPF | SPDR S&P; International Financial | 10 | 920 | $14,953 |
| 40 | TZE | iShares S&P; Target Date 2015 Index Fund | 7 | 620 | $15,850 |
| 41 | STH | Claymore/Sabrient Stealth | 33 | 1344 | $16,338 |
| 42 | PQZ | PowerShares Active Alpha Multi-Cap | 14 | 1185 | $16,681 |
| 43 | CRO | Claymore/Zacks Country Rotation | 23 | 1,285 | $17,354 |
| 44 | XRU | CurrencyShares Russian Ruble Shares | 7 | 565 | $17,718 |
| 45 | GRI | Cohen & Steers Global Realty Majors | 13 | 760 | $17,739 |
| 46 | PQSC | PowerShares FTSE Nasdaq Small Cap | 14 | 1,080 | $18,468 |
| 47 | AGF | PowerShares DB Agriculture Long ETN | 14 | 1,100 | $19,452 |
| 48 | FXR | First Trust Industrials AlphaDex | 25 | 1,790 | $19,591 |
| 49 | PMA | PowerShares Active Mega-Cap Portfolio | 14 | 1,050 | $19,695 |
| 50 | UBM | E-TRACS CMCI Industrial Metals TR ETN | 14 | 1,400 | $19,732 |
| 51 | RHO | Rydex Inverse 2x S&P; Health Care | 12 | 370 | $19,740 |
| 52 | PNXQ | PowerShares Nasdaq Next Q | 14 | 1160 | $20,195 |
| 53 | TZG | iShares S&P; Target Date 2020 Index Fund | 7 | 815 | $20,606 |
| 54 | BOS | PowerShares DB Base Metals Sht ETN | 12 | 585 | $20,689 |
| 55 | IRO | Claymore/Zacks Dividend Rotation | 20 | 1490 | $21,110 |
| 56 | TZL | iShares S&P; Target Date 2030 Index Fund | 7 | 850 | $21,196 |
| 57 | DOD | Elements Dogs of the Dow Total Return ETN | 19 | 4020 | $21,497 |
| 58 | PQY | PowerShares Active AlphaQ | 14 | 1,330 | $23,696 |
| 59 | BVT | Elements Ben Graham Total Mkt Value ETN | 10 | 3,040 | $23,956 |
| 60 | UAG | E-TRACS CMCI Agriculture TR ETN | 14 | 1,310 | $26,895 |
| 61 | JPP | SPDR Russell/Nomura PRIME Japan | 31 | 840 | $28,857 |
| 62 | TZV | iShares S&P; Target Date 2040 Index Fund | 7 | 1,190 | $29,214 |
| 63 | EEN | Claymore/Robeco Developed Intl Equity | 27 | 2075 | $29,807 |
| 64 | IST | SPDR S&P; International Telecom | 10 | 1670 | $31,749 |
| 65 | FDD | First Trust DJ STOXX Select Dividend 30 | 21 | 2,855 | $31,758 |
| 66 | CSD | Claymore/Clear Spin-Off ETF | 30 | 2370 | $31,779 |
| 67 | PTO | PowerShares Auto Growth NFA | 13 | 3,635 | $32,145 |
| 68 | IFEU | iShares FTSE/EPRA NAREIT Europe | 19 | 1,445 | $32,170 |
| 69 | IPS | SPDR S&P; International Consumer Staples | 10 | 1,565 | $33,905 |
| 70 | BDG | PowerShares DB Base Metals Lng ETN | 12 | 2,275 | $34,619 |
| 71 | DEF | Claymore/Sabrient Defender | 30 | 2,015 | $34,677 |
| 72 | IPK | SPDR S&P; International Technology | 10 | 1,745 | $34,927 |
| 73 | FPX | First Trust IPOX-100 Index Fund | 38 | 2,275 | $35,655 |
| 74 | GRU | Elements MLCX Grains Total Return ETN | 16 | 5,620 | $36,316 |
| 75 | JFT | First Trust Enhanced 130/30 Large Cap ETN | 12 | 1,490 | $36,523 |
| 76 | PSR | PowerShares Active U.S. Real Estate Fund | 6 | 1,415 | $36,646 |
| 77 | DDI | WisdomTree Intl Industrial | 32 | 2,200 | $37,215 |
| 78 | TLL | ProShares UltraShort Telecom | 14 | 1215 | $38,260 |
| 79 | PSTL | PowerShares Global Steel Portfolio | 8 | 2,475 | $38,445 |
| 80 | GRN | iPath Global Carbon ETN | 11 | 1,400 | $38,488 |
| 81 | EU | WisdomTree Dreyfus Euro | 13 | 1,795 | $40,171 |
| 82 | LVL | Claymore/BBD High Income | 24 | 3,750 | $40,421 |
| 83 | EXB | Claymore/Clear Global Exchanges & Brokers | 23 | 3,510 | $40,962 |
| 84 | XGC | Claymore/Great Companies Lg-Cap Growth | 26 | 2,850 | $41,289 |
| 85 | QQXT | First Trust Nasdaq-100 Ex-Technology | 28 | 3,115 | $42,613 |
| 86 | FAD | First Trust Multi Cap Growth AlphaDEX | 25 | 2,365 | $43,325 |
| 87 | GCE | Claymore CEF Index GS Connect ETN | 18 | 3,700 | $44,796 |
| 88 | PBTQ | PowerShares Global Biotech Portfolio | 9 | 2,300 | $46,185 |
| 89 | OTR | Claymore/Ocean Tomo Growth | 26 | 2,555 | $46,504 |
| 90 | BWV | iPath CBOE S&P; 500 BuyWrite Index ETN | 25 | 1,305 | $48,563 |
| 91 | FXG | First Trust Consumer Staples AlphaDex | 25 | 3,310 | $48,979 |
| 92 | IPD | SPDR S&P; International Consumer Discr | 10 | 2,625 | $52,804 |
| 93 | ADRU | BLDRS Europe 100 ADR | 80 | 3,185 | $54,465 |
| 94 | WMW | Elements Mrngstr Wide Moat Focus ETN | 20 | 6,575 | $54,673 |
| 95 | DPU | PowerShares DB Commodity Long ETN | 13 | 3,825 | $55,808 |
| 96 | PIQ | PowerShares Dynamic Magniquant | 32 | 3,315 | $55,895 |
| 97 | ERO | iPath EUR/USD Exchange Rate ETN | 25 | 1,050 | $56,256 |
| 98 | DPC | WisdomTree Intl Consumer Cyclical | 32 | 3,485 | $56,630 |
| 99 | DEB | WisdomTree Europe Total Dividend | 36 | 1,605 | $56,993 |
| 100 | PJO | PowerShares FTSE RAFI Japan | 24 | 1720 | $57,545 |
| 101 | PAO | PowerShares Auto Balanced Growth NFA | 13 | 5,990 | $57,681 |
| 102 | FNX | First Trust Mid Cap Core AlphaDEX | 25 | 2,965 | $58,278 |
| 103 | OTP | Claymore/Ocean Tomo Patent | 30 | 3,350 | $60,618 |
| 104 | IIH | HOLDRS Internet Infrastructure | 113 | 26,335 | $60,932 |
| 105 | GULF | WisdomTree Middle East Dividend | 11 | 4,310 | $61,278 |
| 106 | JJS | iPath DJ AIG Softs ETN | 11 | 1,535 | $62,413 |
| 107 | RHM | Rydex 2x S&P; Health Care | 12 | 1,435 | $62,431 |
| 108 | IFSM | iShares FTSE Dev Small Cap ex-N. Amer | 19 | 2,450 | $62,751 |
| 109 | PQBW | PowerShares Nasdaq 100 Buy/Write | 12 | 3,360 | $63,263 |
| 110 | DEW | WisdomTree Europe High-Yielding Equity | 36 | 1,915 | $63,278 |
| 111 | JJP | iPath DJ AIG Precious Metals ETN | 11 | 1,375 | $67,448 |
| 112 | DBT | WisdomTree Intl Technology | 32 | 4,435 | $71,337 |
| 113 | PJM | PowerShares Dynamic Small Cap | 30 | 4,820 | $72,430 |
| 114 | DBR | WisdomTree Intl Health Care | 32 | 3,790 | $72,652 |
| 115 | FFR | First Trust FTSE EPRA/NAREIT Gbl Real Es | 21 | 3,120 | $73,322 |
| 116 | JYF | WisdomTree Dreyfus Japan Yen | 13 | 2,775 | $75,660 |
| 117 | UOY | MacroShares $100 Oil Up | 11 | 21,539 | $75,739 |
| 118 | FXU | First Trust Utilities AlphaDex | 25 | 5,975 | $76,261 |
| 119 | TDD | TDX Independence 2010 | 20 | 3,370 | $76,636 |
| 120 | INY | SPDR Barclays New York Muni Bond | 20 | 3,580 | $78,267 |
| 121 | FRI | First Trust S&P; REIT | 25 | 9,680 | $79,588 |
| 122 | JYN | iPath JPY/USD Exchange Rate ETN | 25 | 1,290 | $79,673 |
| 123 | FEX | First Trust Large Cap Core AlphaDEX | 25 | 4,465 | $81,024 |
| 124 | RTR | RevenueShares ADR Fund | 6 | 2,735 | $81,094 |
| 125 | DDP | PowerShares DB Commodity Short ETN | 13 | 1,805 | $81,236 |
| 126 | TDV | TDX Independence 2040 | 20 | 5,488 | $83,167 |
| 127 | FXD | First Trust Cons Discretionary AlphaDex | 25 | 7,395 | $83,196 |
| 128 | FGD | First Trust DJ Global Select Dividend | 18 | 5,280 | $83,390 |
| 129 | FYX | First Trust Small Cap Core AlphaDEX | 25 | 4,610 | $84,643 |
| 130 | USY | WisdomTree US Current Income | 13 | 3,398 | $84,958 |
| 131 | PEF | PowerShares FTSE RAFI Europe | 24 | 3,025 | $85,037 |
| 132 | MDD | SPDR S&P; International Mid Cap | 13 | 3,910 | $85,631 |
| 133 | JJU | iPath DJ AIG Aluminum ETN | 11 | 3,970 | $87,508 |
| 134 | REC | Rydex Inverse 2x S&P; Energy | 12 | 10,360 | $87,562 |
| 135 | EEZ | WisdomTree Earnings Top 100 Fund | 28 | 2,910 | $87,617 |
| 136 | FTC | First Trust Large Cap Growth Op AlphaDEX | 25 | 4,925 | $88,458 |
| 137 | FXN | First Trust Energy AlphaDex | 25 | 6,965 | $90,351 |
| 138 | PDN | PowerShares Dev Markets ex-US Small-Mid | 20 | 5,795 | $92,394 |
| 139 | FXL | First Trust Technology AlphaDex | 25 | 7,520 | $93,532 |
| 140 | DFE | WisdomTree Europe SmallCap Dividend | 36 | 3,230 | $93,739 |
| 141 | DRF | WisdomTree Intl Financial | 32 | 7,655 | $94,044 |
| 142 | DPN | WisdomTree Intl Consumer Non-Cycl | 32 | 4,970 | $94,589 |
| 143 | DXJ | WisdomTree Japan Total Dividend | 36 | 2,595 | $95,541 |
| 144 | FUD | E-TRACS CMCI Food Total Return ETN | 14 | 4,475 | $95,882 |
| 145 | IFNA | iShares FTSE NAREIT North America | 19 | 4,170 | $95,915 |
| 146 | PBS | PowerShares Dynamic Media | 48 | 11,315 | $95,943 |
| 147 | BOM | PowerShares DB Base Metals Dbl Sh ETN | 12 | 2,170 | $96,053 |
| 148 | RYU | Rydex S&P; Equal Weight Utilities | 31 | 2,445 | $96,124 |
| 149 | TDX | TDX Independence In-Target | 20 | 4,000 | $96,764 |
| 150 | RYJ | Claymore/Raymond James Strong Buy Eq | 9 | 7,960 | $97,503 |
Disclosure: no positions.