ETF’s That Are On DeathWatch For January 2010
Ron Rowland From InvestWithAnEdge puts out his monthly ETF Deathwatch Report: There are 118 ETFs and ETNs on Deathwatch as the new year begins. Last decade we witnessed phenomenal growth in exchange-traded products (ETPs). There were just 32 at the start of the 2000s and 925 at the end, for an annualized growth rate of 40%. The number would have been even higher if not for the 124 product closures.
The next ten years will likely be marked by rapid growth again, although nowhere near the 40% growth of the past. Even if the growth rate of new products slows to only 10% this decade, that means we will be looking at 2,400 ETPs in 2019. My guess is the actual number will be higher.
Fund closures are also likely to accelerate. In recent years, being “first to market” was a key ingredient in a product’s success. But the market is now more demanding. New products need to provide value in order to generate investor interest. Value can take many forms: lower cost, access to previously unavailable markets, or a novel approach to a particular market segment.
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It is still relatively inexpensive for a sponsor to launch a bunch of unproven ideas and see what works and what doesn’t. Therefore, as the number of new product launches accelerates, so do the prospects that many won’t survive. New ETPs must provide value and the sponsor must market them effectively.
Elements Ben Graham Large Cap Value ETN (BVL) heads the list for January, as it has many times in the past. BVL traded on only four days in December. I should probably remind you that the table below does not have any zeros missing. The volume and dollar figures represent the actual amounts, not millions or thousands (or even hundreds). BVL trades just 164 shares a day on average. But then again, since its actual volume was zero shares 82% of the time, a truly average/typical day would not have any trades.
While most investors are familiar with the name “Ben Graham”, unless you are a regular reader of this column then you are probably not familiar with the “Elements” brand. And therein resides one of BVL’s problems – lack of awareness. I don’t recall ever seeing an ad for Elements ETNs.
Another problem is that although it sounds like a stock fund, what you are really buying is an unsecured debt obligation, otherwise known as an ETN. Yet another potential problem is not knowing who is standing behind that debt, because it’s not Elements. In the case of BVL, Deutsche Bank is the note issuer, but the same is not true of all Elements ETNs.
Listed below are the 118 products on ETF Deathwatch for January. The 78 ETFs and 40 ETNs that failed to generate at least $100,000 in average daily value traded (ADVT) during the past month. The 90 new ETPs introduced in the past six months are granted an exclusion.
ETF Deathwatch – January 2010
| Rank | Ticker | Name | Age (mths) | Avg Daily Volume | Avg Daily Value Traded |
|---|---|---|---|---|---|
| 1 | (BVL) | Elements Ben Graham Large Cap Value ETN | 17 | 164 | $1,544 |
| 2 | (PQSC) | PowerShares FTSE Nasdaq Small Cap | 21 | 95 | $2,074 |
| 3 | (UBC) | E-TRACS CMCI Livestock Total Return ETN | 21 | 209 | $3,786 |
| 4 | (PNXQ) | PowerShares Nasdaq Next Q | 21 | 168 | $3,985 |
| 5 | (AYT) | Barclays GEMS Asia 8 ETN | 16 | 127 | $5,927 |
| 6 | (EEH) | Elements Spec LgCap US Sector Mo ETN | 29 | 777 | $6,308 |
| 7 | (TZD) | iShares S&P Target Date 2010 Index Fund | 14 | 223 | $6,474 |
| 8 | (BHH) | HOLDRS B2B Internet ETF | 120 | 16,132 | $6,578 |
| 9 | (PBTQ) | PowerShares Global Biotech Portfolio | 16 | 323 | $7,472 |
| 10 | (STH) | Claymore/Sabrient Stealth | 40 | 553 | $8,434 |
| 11 | (JPX) | ProShares UltraShort MSCI Pacific ex-Japan | 7 | 482 | $9,401 |
| 12 | (UBD) | Claymore U.S. Capital Markets Bond ETF | 23 | 223 | $10,851 |
| 13 | (UBN) | E-TRACS CMCI Energy Total Return ETN | 21 | 768 | $11,390 |
| 14 | (PGD) | Barclays Asian&Gulf Currency Reval. ETN | 19 | 232 | $11,672 |
| 15 | (GBB) | iPath GBP/USD Exchange Rate ETN | 32 | 277 | $12,162 |
| 16 | (PJO) | PowerShares FTSE RAFI Japan | 31 | 336 | $12,270 |
| 17 | (PTD) | E-TRACS CMCI Short Platinum Exc Ret ETN | 20 | 377 | $12,341 |
| 18 | (BVT) | Elements Ben Graham Total Mkt Value ETN | 17 | 1,214 | $12,507 |
| 19 | (FUE) | Elements MLCX Biofuels ETN | 23 | 1,523 | $12,693 |
| 20 | (JFT) | First Trust Enhanced 130/30 Large Cap ETN | 20 | 507 | $13,837 |
| 21 | (MKH) | HOLDRS Merrill Lynch Market 2000+ | 114 | 295 | $14,741 |
| 22 | (GWO) | Elements CS Global Warming ETN | 21 | 2,150 | $15,390 |
| 23 | (JEM) | Barclays GEMS Currency Index ETN | 23 | 355 | $15,981 |
| 24 | (EXB) | Claymore/Beacon Global Exch, Brkrs, & Asst Mgrs | 31 | 1,227 | $16,369 |
| 25 | (JJT) | iPath DJ-UBS Tin ETN | 19 | 445 | $16,464 |
| 26 | (TZV) | iShares S&P Target Date 2040 Index Fund | 14 | 555 | $16,768 |
| 27 | (KME) | SPDR KBW Mortgage Finance ETF | 8 | 445 | $17,862 |
| 28 | (PAO) | PowerShares Auto Balanced Growth NFA | 20 | 1,709 | $19,513 |
| 29 | (TGR) | iShares S&P Target Date Retirement Inc. | 14 | 700 | $19,623 |
| 30 | (FAD) | First Trust Multi Cap Growth AlphaDEX | 32 | 877 | $20,485 |
| 31 | (DOD) | Elements Dogs of the Dow Total Return ETN | 26 | 2,986 | $20,537 |
| 32 | (UAG) | E-TRACS CMCI Agriculture TR ETN | 21 | 1,018 | $22,416 |
| 33 | (IIH) | HOLDRS Internet Infrastructure | 120 | 8,995 | $23,103 |
| 34 | (AGA) | PowerShares DB Agriculture Dbl Short ETN | 21 | 768 | $26,868 |
| 35 | (JPP) | SPDR Russell/Nomura PRIME Japan | 38 | 723 | $26,938 |
| 36 | (EEN) | Claymore/BNY Mellon EW Euro-Pacific LDRs | 35 | 1,514 | $27,087 |
| 37 | (URR) | Market Vectors Double Long Euro ETN | 20 | 781 | $28,016 |
| 38 | (TZE) | iShares S&P Target Date 2015 Index Fund | 14 | 950 | $28,023 |
| 39 | (USV) | E-TRACS CMCI Silver Total Return ETN | 21 | 1,123 | $28,820 |
| 40 | (IRY) | SPDR S&P International Health Care | 17 | 986 | $29,266 |
| 41 | (INR) | Market Vectors Indian Rupee/USD ETN | 22 | 795 | $30,208 |
| 42 | (PMA) | PowerShares Active Mega-Cap Portfolio | 21 | 1,355 | $30,769 |
| 43 | (UBM) | E-TRACS CMCI Industrial Metals TR ETN | 21 | 1,582 | $32,369 |
| 44 | (AGF) | PowerShares DB Agriculture Long ETN | 21 | 1,877 | $32,626 |
| 45 | (ADZ) | PowerShares DB Agriculture Short ETN | 21 | 1,041 | $32,669 |
| 46 | (TZL) | iShares S&P Target Date 2030 Index Fund | 14 | 1,105 | $33,261 |
| 47 | (TZO) | iShares S&P Target Date 2035 Index Fund | 14 | 1,109 | $33,563 |
| 48 | (GRN) | iPath Global Carbon ETN | 19 | 1,355 | $33,661 |
| 49 | (PCA) | PowerShares Auto Balanced NFA | 20 | 2,814 | $33,767 |
| 50 | (IPN) | SPDR S&P International Industrial | 17 | 1,456 | $34,443 |
| 51 | (DPC) | WisdomTree Intl Consumer Cyclical | 39 | 1,823 | $35,717 |
| 52 | (BOM) | PowerShares DB Base Metals Dbl Sh ETN | 19 | 2,136 | $36,531 |
| 53 | (PTO) | PowerShares Auto Growth NFA | 20 | 3,327 | $36,538 |
| 54 | (EKH) | HOLDRS Europe 2001 | 109 | 636 | $40,083 |
| 55 | (CRO) | Claymore/Zacks Country Rotation | 30 | 2,491 | $41,321 |
| 56 | (PQY) | PowerShares Active AlphaQ | 21 | 1,891 | $42,785 |
| 57 | (CZA) | Claymore/Zacks Mid-Cap Core ETF | 33 | 1,857 | $43,296 |
| 58 | (ERO) | iPath EUR/USD Exchange Rate ETN | 32 | 768 | $43,413 |
| 59 | (PTRP) | PowerShares Glb Progressive Transport. | 16 | 1,632 | $43,855 |
| 60 | (BSC) | Elements Ben Graham Small Cap Value ETN | 17 | 4,214 | $45,297 |
| 61 | (RTW) | Rydex Inverse 2x S&P Technology | 19 | 2,354 | $45,396 |
| 62 | (TDX) | TDX Independence In-Target | 27 | 1,828 | $45,994 |
| 63 | (OTR) | Claymore/Ocean Tomo Growth | 33 | 1,955 | $47,075 |
| 64 | (REC) | Rydex Inverse 2x S&P Energy | 19 | 8,673 | $47,462 |
| 65 | (RHO) | Rydex Inverse 2x S&P Health Care | 19 | 1,473 | $48,490 |
| 66 | (IFNA) | iShares FTSE NAREIT North America | 26 | 1,491 | $48,920 |
| 67 | (IPD) | SPDR S&P International Consumer Discr | 17 | 2,064 | $51,201 |
| 68 | (WMW) | Elements Mrngstr Wide Moat Focus ETN | 27 | 4,755 | $51,378 |
| 69 | (PJM) | PowerShares Dynamic Small Cap | 38 | 2,905 | $52,377 |
| 70 | (PQBW) | PowerShares Nasdaq 100 Buy/Write | 19 | 2,327 | $52,386 |
| 71 | (TZG) | iShares S&P Target Date 2020 Index Fund | 14 | 1,823 | $54,527 |
| 72 | (WMH) | HOLDRS Wireless | 112 | 1,218 | $57,448 |
| 73 | (PQZ) | PowerShares Active Alpha Multi-Cap | 21 | 3,432 | $58,658 |
| 74 | (IRO) | Claymore/Zacks Dividend Rotation | 27 | 3,173 | $59,262 |
| 75 | (ROB) | Claymore/Robb Report Global Luxury | 30 | 3,427 | $59,701 |
| 76 | (GCE) | Claymore CEF Index GS Connect ETN | 25 | 3,700 | $61,099 |
| 77 | (FDD) | First Trust DJ STOXX European Select Dividend | 28 | 4,509 | $63,026 |
| 78 | (BDG) | PowerShares DB Base Metals Lng ETN | 19 | 2,745 | $63,510 |
| 79 | (TDD) | TDX Independence 2010 | 27 | 2,773 | $64,489 |
| 80 | (TZI) | iShares S&P Target Date 2025 Index Fund | 14 | 2,159 | $64,953 |
| 81 | (PYH) | PowerShares Value Line Industry Rotation | 38 | 3,591 | $65,489 |
| 82 | (XRO) | Claymore/Zacks Sector Rotation | 40 | 3,199 | $66,081 |
| 83 | (XGC) | Claymore/BNY Mellon Intl Small Cap LDRs | 33 | 3,329 | $67,142 |
| 84 | (ADRU) | BLDRS Europe 100 ADR | 87 | 3,200 | $68,049 |
| 85 | (RGI) | Rydex S&P Equal Weight Industrials | 38 | 1,566 | $68,431 |
| 86 | (FUD) | E-TRACS CMCI Food Total Return ETN | 21 | 3,136 | $68,818 |
| 87 | (RHS) | Rydex S&P Equal Weight Cons Staples | 38 | 1,427 | $70,865 |
| 88 | (RYF) | Rydex S&P Equal Weight Financial | 38 | 3,127 | $70,912 |
| 89 | (UBG) | E-TRACS CMCI Gold Total Return ETN | 21 | 2,318 | $71,012 |
| 90 | (PEJ) | PowerShares Dynamic Leisure & Enter | 55 | 5,405 | $71,477 |
| 91 | (JYN) | iPath JPY/USD Exchange Rate ETN | 32 | 1,109 | $71,895 |
| 92 | (FVI) | First Trust Value Line Equity Allocation | 37 | 4,268 | $72,901 |
| 93 | (SMK) | ProShares UltraShort MSCI Mexico | 7 | 2,873 | $74,982 |
| 94 | (USY) | WisdomTree U.S. Short-Term Govt Income | 20 | 2,996 | $74,992 |
| 95 | (TDN) | TDX Independence 2030 | 27 | 4,004 | $75,613 |
| 96 | (DPN) | WisdomTree Intl Consumer Non-Cycl | 39 | 3,141 | $78,685 |
| 97 | (RWW) | RevenueShares Financials Sector Fund | 14 | 2,886 | $79,784 |
| 98 | (UCI) | E-TRACS CMCI Total Return ETN | 21 | 4,164 | $80,853 |
| 99 | (DEF) | Claymore/Sabrient Defender | 37 | 3,836 | $81,223 |
| 100 | (CMD) | ProShares UltraShort DJ-UBS Commodity | 13 | 5,314 | $82,024 |
| 101 | (BWV) | iPath CBOE S&P 500 BuyWrite Index ETN | 32 | 1,836 | $82,556 |
| 102 | (RMS) | Rydex Inverse 2x S&P MidCap 400 | 26 | 2,668 | $83,689 |
| 103 | (JYF) | WisdomTree Dreyfus Japan Yen | 20 | 2,923 | $84,397 |
| 104 | (DBR) | WisdomTree Intl Health Care | 39 | 3,468 | $84,428 |
| 105 | (PKN) | PowerShares Global Nuclear Energy | 21 | 4,505 | $84,670 |
| 106 | (PKW) | PowerShares Buyback Achievers | 37 | 4,127 | $84,790 |
| 107 | (PWO) | PowerShares Dynamic OTC | 81 | 2,141 | $85,002 |
| 108 | (BDH) | HOLDRS Broadband ETF | 119 | 6,968 | $86,253 |
| 109 | (SJL) | ProShares UltraShort Russell Midcap Value | 35 | 3,191 | $86,808 |
| 110 | (TLL) | ProShares UltraShort Telecom | 21 | 6,042 | $89,602 |
| 111 | (MCRO) | IQ Hedge Macro Tracker ETF | 7 | 3,409 | $91,379 |
| 112 | (DEE) | PowerShares DB Commodity Dbl Short ETN | 20 | 1,727 | $93,412 |
| 113 | (PZJ) | PowerShares Zacks Small Cap | 47 | 5,436 | $94,629 |
| 114 | (DPU) | PowerShares DB Commodity Long ETN | 20 | 6,068 | $96,457 |
| 115 | (ROI) | WisdomTree LargeCap Growth | 13 | 2,855 | $97,600 |
| 116 | (JJP) | iPath DJ-UBS Precious Metals ETN | 19 | 1,650 | $98,270 |
| 117 | (ICI) | iPath Optimized Currency Carry ETN | 21 | 2,159 | $98,357 |
| 118 | (DDP) | PowerShares DB Commodity Short ETN | 20 | 2,545 | $99,813 |
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