{"id":1245,"date":"2021-07-12T10:48:16","date_gmt":"2021-07-12T10:48:16","guid":{"rendered":"https:\/\/investwithanedge.com\/?page_id=1245"},"modified":"2021-07-12T10:48:16","modified_gmt":"2021-07-12T10:48:16","slug":"final-etf-death-toll-for-2008-58","status":"publish","type":"page","link":"https:\/\/investwithanedge.com\/final-etf-death-toll-for-2008-58\/","title":{"rendered":"Final ETF Death Toll for 2008 = 58"},"content":{"rendered":"

The ETF industry was 10 years old before it had its first casualty in 2003.\u00a0 A total of four funds closed that year, a group of bond ETFs known as FITRs.\u00a0 Three years passed before the next ETF fell by the wayside with the departure of the SPDR O-Strip in 2006.\u00a0\u00a0At the end of 2007, the U.S. ETF industry had seen a grand total of only five ETFs meet their demise.<\/p>\n

All that changed in 2008 with the delisting of 58 ETFs and ETNs.\u00a0 The industry\u2019s lifetime toll surged from 5 to 63.\u00a0 A casual observer might blame this on the financial crisis that engulfed the market during the last quarter of the year, but in fact more than 80% of the closures were announced before the end of September.\u00a0 The market crisis didn\u2019t cause the ETF death toll to surge this year; it was more a\u00a0simple case of supply and demand.<\/p>\n

A record number of new ETFs, more than 290, came to market in 2007.\u00a0 An industry of less than 200 products in 2004 exceeded the 800 level in early 2008.\u00a0 A four-fold increase in the number of ETFs in just three years was too much, too fast.\u00a0 There were simply more products than the market could absorb.\u00a0 The demise of 58 ETFs this year is nothing more than Economics 101\u00a0at work.\u00a0 There is still too much supply, and there will be more closures in 2009.<\/p>\n

The 58 delisted ETFs of 2008 are itemized in the table below.\u00a0 A common theme for the failures: basing a product on a very narrow slice of the market.\u00a0 XShares Advisors suffered the most casualties, losing 26 products with the closure of seven Adelante real estate ETFs in July, 15 HealthShares in September, and another four HealthShares in December.\u00a0 Claymore lost a total of 13 during the year.<\/p>\n

Most ETFs closures are purely economic – the product failed to attract enough fee-paying assets to make it viable for its sponsor.\u00a0 However, that is not the only reason.\u00a0 Two ETFs were closed by design this year.\u00a0 The prospectus for Claymore\u2019s MacroShares Oil Up and MacroShares Oil Down stated that if crude oil traded above a certain price ($111) for three days in a row, then the funds would be closed and liquidated.\u00a0 That of course happened in April, forcing a shut down and eventual liquidation of those two ETFs.<\/p>\n

Three other products met their demise in a somewhat surprising way, at least to those who own them.\u00a0 Exchange Traded Notes (ETNs) are different from ETFs, but they are generally lumped together when discussing ETFs.\u00a0 ETNs are actually bonds (typically with a 30-year maturity) that pay no interest, and their daily value is linked to the performance of an index.\u00a0 Because they are bonds, they also have a risk of default.\u00a0 That is exactly what happened on September 12 when Lehman Brothers declared bankruptcy.\u00a0 Lehman was the bond issuer for Opta Lehman Agriculture Pure Beta ETN, Opta Lehman Commodity Index ETN, and Opta S&P Private Equity Notes ETN.\u00a0 Owners of these three ETNs may one day get about 10 cents on the dollar if they are lucky.\u00a0 Chances are, they will wait a long time to learn that they will receive nothing.<\/p>\n

Yes, the final ETF death toll was high in 2008, but it is likely to be higher in 2009.\u00a0 Look for my first ETF Deathwatch\u00a0of 2009 to be published in just a few days to see if your ETF is on the list.<\/p>\n

ETF Death Toll\u00a0– 2008<\/h3>\n

 <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Number<\/th>\nTicker<\/th>\nName<\/th>\nR.I.P.<\/th>\n<\/tr>\n<\/thead>\n
1<\/td>\nBST<\/td>\nClaymore\/BIR Leaders 50<\/td>\n02\/12\/2008<\/td>\n<\/tr>\n
2<\/td>\nCLV<\/td>\nClaymore\/Robeco Boston Partners Large-Cap Value<\/td>\n02\/12\/2008<\/td>\n<\/tr>\n
3<\/td>\nCZG<\/td>\nClaymore\/Zacks Growth & Income Index<\/td>\n02\/12\/2008<\/td>\n<\/tr>\n
4<\/td>\nSCV<\/td>\nClaymore\/IndexIQ Small-Cap Value<\/td>\n02\/13\/2008<\/td>\n<\/tr>\n
5<\/td>\nBES<\/td>\nClaymore\/BIR Leaders Small-Cap Core<\/td>\n02\/14\/2008<\/td>\n<\/tr>\n
6<\/td>\nBMV<\/td>\nClaymore\/BIR Leaders Mid-Cap Value<\/td>\n02\/15\/2008<\/td>\n<\/tr>\n
7<\/td>\nMCG<\/td>\nClaymore\/Clear Mid-Cap Growth Index<\/td>\n02\/15\/2008<\/td>\n<\/tr>\n
8<\/td>\nKSF<\/td>\nClaymore\/KLD Sudan Free Large-Cap Core<\/td>\n02\/15\/2008<\/td>\n<\/tr>\n
9<\/td>\nJNR<\/td>\nClaymore\/Clear Global Vaccine Index<\/td>\n02\/19\/2008<\/td>\n<\/tr>\n
10<\/td>\nGRN<\/td>\nClaymore\/LGA Green<\/td>\n02\/19\/2008<\/td>\n<\/tr>\n
11<\/td>\nEEW<\/td>\nClaymore\/Robeco Developed World Equity<\/td>\n02\/19\/2008<\/td>\n<\/tr>\n
12<\/td>\nGKA<\/td>\nAmeristock Ryan 1-Year Treasury<\/td>\n06\/10\/2008<\/td>\n<\/tr>\n
13<\/td>\nGKB<\/td>\nAmeristock Ryan 2-Year Treasury<\/td>\n06\/10\/2008<\/td>\n<\/tr>\n
14<\/td>\nGKC<\/td>\nAmeristock Ryan 5-Year Treasury<\/td>\n06\/10\/2008<\/td>\n<\/tr>\n
15<\/td>\nGKD<\/td>\nAmeristock Ryan 10-Year Treasury<\/td>\n06\/10\/2008<\/td>\n<\/tr>\n
16<\/td>\nGKE<\/td>\nAmeristock Ryan 20-Year Treasury<\/td>\n06\/10\/2008<\/td>\n<\/tr>\n
17<\/td>\nDCR<\/td>\nClaymore\/MacroShares Oil Down<\/td>\n06\/25\/2008<\/td>\n<\/tr>\n
18<\/td>\nUCR<\/td>\nClaymore\/MacroShares Oil Up<\/td>\n06\/25\/2008<\/td>\n<\/tr>\n
19<\/td>\nACB<\/td>\nAdelante Real Estate Composite<\/td>\n07\/24\/2008<\/td>\n<\/tr>\n
20<\/td>\nAKB<\/td>\nAdelante Real Estate Kings<\/td>\n07\/24\/2008<\/td>\n<\/tr>\n
21<\/td>\nACK<\/td>\nAdelante Shares RE Classics<\/td>\n07\/24\/2008<\/td>\n<\/tr>\n
22<\/td>\nAGV<\/td>\nAdelante Shares Real Estate Growth<\/td>\n07\/24\/2008<\/td>\n<\/tr>\n
23<\/td>\nAQS<\/td>\nAdelante Shares Real Estate Shelter<\/td>\n07\/24\/2008<\/td>\n<\/tr>\n
24<\/td>\nAVU<\/td>\nAdelante Shares Real Estate Value<\/td>\n07\/24\/2008<\/td>\n<\/tr>\n
25<\/td>\nATY<\/td>\nAdelante Shares Real Estate Yield Plus<\/td>\n07\/24\/2008<\/td>\n<\/tr>\n
26<\/td>\nEOH<\/td>\nOpta Lehman Agriculture Pure Beta ETN<\/td>\n09\/12\/2008<\/td>\n<\/tr>\n
27<\/td>\nRAW<\/td>\nOpta Lehman Commodity Index ETN<\/td>\n09\/12\/2008<\/td>\n<\/tr>\n
28<\/td>\nPPE<\/td>\nOpta S&P; Private Equity Notes 2038 ETN<\/td>\n09\/12\/2008<\/td>\n<\/tr>\n
29<\/td>\nHHA<\/td>\nHealthShares Autoimmune-Inflammation<\/td>\n09\/19\/2008<\/td>\n<\/tr>\n
30<\/td>\nHHE<\/td>\nHealthShares Cardio Devices<\/td>\n09\/19\/2008<\/td>\n<\/tr>\n
31<\/td>\nHRD<\/td>\nHealthShares Cardiology<\/td>\n09\/19\/2008<\/td>\n<\/tr>\n
32<\/td>\nHHQ<\/td>\nHealthShares Composite<\/td>\n09\/19\/2008<\/td>\n<\/tr>\n
33<\/td>\nHRW<\/td>\nHealthShares Dermatology & Wound<\/td>\n09\/19\/2008<\/td>\n<\/tr>\n
34<\/td>\nHHJ<\/td>\nHealthShares Emerging Cancer<\/td>\n09\/19\/2008<\/td>\n<\/tr>\n
35<\/td>\nHHT<\/td>\nHealthShares European Medical Prod & Devices<\/td>\n09\/19\/2008<\/td>\n<\/tr>\n
36<\/td>\nHHU<\/td>\nHealthShares GI\/Gender Health<\/td>\n09\/19\/2008<\/td>\n<\/tr>\n
37<\/td>\nHHG<\/td>\nHealthShares Infectious Diseases<\/td>\n09\/19\/2008<\/td>\n<\/tr>\n
38<\/td>\nHHM<\/td>\nHealthShares Metabolic-Endocrine Dis.<\/td>\n09\/19\/2008<\/td>\n<\/tr>\n
39<\/td>\nHHN<\/td>\nHealthShares Neuroscience<\/td>\n09\/19\/2008<\/td>\n<\/tr>\n
40<\/td>\nHHZ<\/td>\nHealthShares Ophthalmology<\/td>\n09\/19\/2008<\/td>\n<\/tr>\n
41<\/td>\nHHP<\/td>\nHealthShares Orthopedic Repair<\/td>\n09\/19\/2008<\/td>\n<\/tr>\n
42<\/td>\nHHB<\/td>\nHealthShares Patient Care Services<\/td>\n09\/19\/2008<\/td>\n<\/tr>\n
43<\/td>\nHHR<\/td>\nHealthShares Respiratory\/Pulmonary<\/td>\n09\/19\/2008<\/td>\n<\/tr>\n
44<\/td>\nYYY<\/td>\nBear Stearns Current Yield<\/td>\n10\/01\/2008<\/td>\n<\/tr>\n
45<\/td>\nMYP<\/td>\nFocusShares ISE CCM Homeland Security<\/td>\n10\/17\/2008<\/td>\n<\/tr>\n
46<\/td>\nSAW<\/td>\nFocusShares ISE Homebuilders<\/td>\n10\/17\/2008<\/td>\n<\/tr>\n
47<\/td>\nPUF<\/td>\nFocusShares ISE SINdex Fund<\/td>\n10\/17\/2008<\/td>\n<\/tr>\n
48<\/td>\nWSI<\/td>\nFocusShares ISE-REVERE WalMart Suppliers<\/td>\n10\/17\/2008<\/td>\n<\/tr>\n
49<\/td>\nADE<\/td>\nElements Australian Dollar AUD\/USD ETN<\/td>\n11\/17\/2008<\/td>\n<\/tr>\n
50<\/td>\nEGB<\/td>\nElements British Pound GBP\/USD ETN<\/td>\n11\/17\/2008<\/td>\n<\/tr>\n
51<\/td>\nCUD<\/td>\nElements Canadian Dollar CAD\/USD ETN<\/td>\n11\/17\/2008<\/td>\n<\/tr>\n
52<\/td>\nERE<\/td>\nElements Euro EUR\/USD ETN<\/td>\n11\/17\/2008<\/td>\n<\/tr>\n
53<\/td>\nSZE<\/td>\nElements Swiss Franc CHF\/USD ETN<\/td>\n11\/17\/2008<\/td>\n<\/tr>\n
54<\/td>\nNXT<\/td>\nNYSE Arca Tech 100 ETF<\/td>\n12\/15\/2008<\/td>\n<\/tr>\n
55<\/td>\nHHK<\/td>\nHealthShares Cancer<\/td>\n12\/23\/2008<\/td>\n<\/tr>\n
56<\/td>\nHHD<\/td>\nHealthShares Diagnostics<\/td>\n12\/23\/2008<\/td>\n<\/tr>\n
57<\/td>\nHHV<\/td>\nHealthShares Drug Discovery Tools<\/td>\n12\/23\/2008<\/td>\n<\/tr>\n
58<\/td>\nHRJ<\/td>\nHealthShares European Drugs<\/td>\n12\/23\/2008<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The ETF industry was 10 years old before it had its first casualty in 2003.\u00a0 A total of four funds closed that year, a group of bond ETFs known as FITRs.\u00a0 Three years passed before the next ETF fell by the wayside with the departure of the SPDR O-Strip in 2006.\u00a0\u00a0At the end of 2007, …<\/p>\n","protected":false},"author":4,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"acf":[],"_links":{"self":[{"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/pages\/1245"}],"collection":[{"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/comments?post=1245"}],"version-history":[{"count":0,"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/pages\/1245\/revisions"}],"wp:attachment":[{"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/media?parent=1245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}