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The ETF Deathwatch list decreased in size in December. Eleven exchange-traded products (\u201cETPs\u201d) were added to the list, and 21 funds were removed. Of the removals, 13 were removed due to increased health and eight were due to asset managers closing their funds. During December, the bull market of 2019 continued with a strong, positive trend in equities, so the decrease was to be expected.<\/p>\n
The funds added in December were a mix of actively managed, international, fixed-income, and niche products. Two funds were added because their assets under management (AUM) were consistently below $5 million for three months. The rest were added due to low average daily volume. These additions may have enough AUM to keep them from closure; however, our system takes into account both AUM and volume, so it\u2019s likely that should volume and interest remain low, these funds may be considered for closure. The low volume in these funds could be due to the nature of the investment product. Many of the funds on the Deathwatch list are actively managed funds or hedge funds. Because equity markets have remained strong for the majority of last year, investors may be opting to stick with passive equity funds rather than actively managed funds.<\/p>\n
The addition of niche ETF products to the list wasn\u2019t a surprise. The returns in the overall U.S. equity market have been very strong, giving investors less reason to move money to actively managed and niche products. China and the U.S. made progress toward a phase-one trade agreement in December, leading to an increase in investor and business confidence in the near term. Unemployment also clocked in at about 3.5% in December, indicating continued resilience in the job market. This could have led to an increase in consumer confidence, which, in turn, leads to investor and business confidence as well. The fewer additions to the Deathwatch list compared to removals points toward last year\u2019s strong economic performance, which continued through December.<\/p>\n
Fifty-two ETFs and ETNs on Deathwatch this month have been in the market for more than 10 years. This is a long time for ETPs to exist while remaining on our Deathwatch list. Leveraged and short ETF instruments, as well as a number of commodity ETPs, dominate our list of funds older than 10 years. It\u2019s possible that the fund companies managing these products will allow them to remain active, as they may play a larger role for their clients that are interested in active management.<\/p>\n
The average asset level of the threatened ETFs on ETF Deathwatch increased from $8.29 million to $8.35 million, and 63 products had less than $2 million in assets. The average age of products on the list increased from 49.41 to 50.53 months, and the number of products more than 5 years of age increased from 130 to 131. The largest ETF on the list had an AUM of $24.95 million, while the smallest had assets of just $492,000.<\/p>\n
Here is the Complete List of 481 ETFs and ETNs on ETF Deathwatch for December 2019<\/a> compiled using the objective ETF Deathwatch Criteria<\/a>.<\/p>\n The 11 ETFs\/ETNs added to ETF Deathwatch for December:<\/strong><\/p>\n The 8 ETFs\/ETNs that were closed:<\/strong><\/p>\n The 13 ETFs\/ETNs removed from ETF Deathwatch due to improved health:<\/strong><\/p>\n Disclosure: No communication by Dynamic Performance Publishing or our employees to you should be deemed as personalized investment advice. Any investment recommended in this newsletter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Dynamic Performance Publishing, its affiliates, and clients may hold positions in the recommended securities. Results are not indicative of holdings for clients of Flexible Plan Investments. Forwarding, copying, or otherwise duplicating this information for the use by anyone other than the intended recipient is expressly forbidden. These results are not representative of those achieved by clients of Flexible Plan Investments, Ltd. (FPI) due to differences in security selection, timing of trades, transaction fees, and FPI\u2019s management fees.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" The ETF Deathwatch list decreased in size in December. Eleven exchange-traded products (\u201cETPs\u201d) were added to the list, and 21 funds were removed. Of the removals, 13 were removed due to increased health and eight were due to asset managers closing their funds. During December, the bull market of 2019 continued with a strong, positive …<\/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\/2477"}],"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=2477"}],"version-history":[{"count":0,"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/pages\/2477\/revisions"}],"wp:attachment":[{"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/media?parent=2477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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