{"id":1789,"date":"2021-07-12T10:48:16","date_gmt":"2021-07-12T10:48:16","guid":{"rendered":"https:\/\/investwithanedge.com\/?page_id=1789"},"modified":"2021-07-12T10:48:16","modified_gmt":"2021-07-12T10:48:16","slug":"etf-stats-for-september-2012-largest-decline-in-listings-ever","status":"publish","type":"page","link":"https:\/\/investwithanedge.com\/etf-stats-for-september-2012-largest-decline-in-listings-ever\/","title":{"rendered":"ETF Stats for September 2012 \u2013 Largest Decline In Listings Ever"},"content":{"rendered":"
The quantity of ETP listings at the end of September was 18 fewer for the month and 20 fewer for the quarter, the largest declines ever.\u00a0 The one-month closure tally of 24 also established a new record.\u00a0 The current ETP listing count now stands at 1,456 and consists of 1,252 ETFs and 204 ETNs.\u00a0 As stated a month ago \u2013\u00a0the consolidation has begun<\/a>.<\/p>\n It\u2019s not just due to the fact that closures have jumped \u2013 declines in new product launches are also a factor.\u00a0 The 61 new products coming to market during the past half year is the lowest 6-month count since October 2009.\u00a0 Only six new ETPs (five ETFs and one ETN) arrived on the market in September, the second month in a row for such a low total.<\/p>\n There are no signs of improvement either.\u00a0 October will set another new record for closures with 29 liquidations already announced.<\/p>\n Many ETF reports would lead you to believe\u00a0Russell has already closed 25 ETFs this year, pushing the year-to-date closure count above 80.\u00a0 However, the reality is\u00a0no Russell ETFs have been closed or liquidated yet.\u00a0 Back in August, Russell \u201cannounced plans<\/a>\u201d to close and liquidate all ETFs but one in its product line.\u00a0 Those plans provided for the\u00a0continued listing and trading of the affected ETFs through October 16.\u00a0 The 25 Russell ETFs are still in existence today, so don\u2019t count your\u00a0de-listings before they close.\u00a0 The year-to-date actual closure count now stands at 59.<\/p>\n The spike in closures and resulting product consolidation are not signs of industry weakness.\u00a0 Quite the opposite, they are traits of a healthy industry.\u00a0 Not every product will be a winner.\u00a0 A thoughtful pruning process is both necessary and beneficial.<\/p>\n Increasing assets under management is evidence of health, and assets grew another 5% in September to about $1.3 trillion. \u00a0The number of funds with more than $10 billion in assets rose from 24 to 28.\u00a0 ETPs exceeding the $1 billion threshold climbed from 166 to 173.<\/p>\n Trading activity finally picked up after months of declining results.\u00a0 Total dollar volume climbed back above $1 trillion, even though September had 17% fewer trading days than August (19 versus 23).\u00a0 SPDR S&P 500 (SPY) fell short of being responsible for a third of all ETP trading for the first time in memory.\u00a0 It managed to capture \u201conly\u201d a 33.2% share.<\/p>\n ETPs averaging more than $1 billion per day in trading added one member to their ranks and captured 53.4% of all ETP trading activity.\u00a0 Products averaging more than $100 million per day surged from 53 to 73 while capturing 88.0% of trading activity.\u00a0 The quantity with more than $10 million of daily trading also increased, jumping from 208 to 236 while grabbing 97.3% of trading dollars.\u00a0 Unfortunately, that means the remaining 1,200+ products, about 84%, had to fight for the last 2.7% of trading scraps.\u00a0 While the overall ETF industry is healthly, it\u2019s clearly a case of the haves and the have-nots.<\/p>\n <\/p>\n