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.