Ron Rowland: Eight new names are joining ETF Deathwatch for December, and nine products are coming off the list. Six are leaving due to increased investor interest, and three ETFs are exiting because they are now dead, delisted, and liquidated. ETF Deathwatch now consists of 374 (274 ETFs and 100 ETNs) names from the 1,445 listed for trading.
Even though there is a risk these ETPs could eventually close, liquidity risk is present today. For example, the iPath US Treasury 5-Year Yield Bull (DFVL) hasn’t traded since September 13. It is just one of eight Zombie products going the entire month of November with zero volume. iPath Short Enhanced MSCI EAFE (MFSA) is quoted today with a bid price of $37.14 and an ask of $112.10 (a spread of $74.96). Even more troubling is the fact that there are only 100 shares available at each end of those extremes.
The average product on ETF Deathwatch is more than 31 months old and has $6.3 million in assets. Sponsor patience varies widely, with some closing non-profitable products within their first year while others seem willing to subsidize products forever. There are currently 44 ETFs and ETNs on the list that have been on the market for more than five years. The quantity of funds with less than $2 million in assets stands at 60.
The 8 ETPs added to ETF Deathwatch for December:
- AdvisorShares Global Echo ETF (GIVE)
- AlphaClone Alternative Alpha ETF (ALFA)
- Credit Suisse Merger Arbitrage Liquid 2x Monthly ETN (CSMB)
- C-Tracks Citi Volatility Index Total Return ETN (CVOL)
- Guggenheim S&P Equal Weight Financials (RYF)
- iShares MSCI Denmark Capped Investable Market (EDEN)
- QuantShares U.S. Market Neutral Value (CHEP)
- SPDR S&P 400 Mid Cap Value ETF (MDYV)
The 6 ETPs removed from ETF Deathwatch due to improved health:
- Direxion Daily Healthcare Bull 3x (CURE)
- ETRACS DJ-UBS Commodity 2-4-6 Blended Futures ETN (BLND)
- iPath Seasonal Natural Gas ETN (DCNG)
- iShares Asia/Pacific Dividend 30 (DVYA)
- iShares MSCI China Small Cap Index Fund (ECNS)
- ProShares Ultra MSCI Europe (UPV)
The 3 ETPs removed from ETF Deathwatch due to death and delisting:
- QuantShares U.S. Market Neutral Anti-Momentum (NOMO)
- QuantShares U.S. Market Neutral High Beta (BTAH)
- QuantShares U.S. Market Neutral Quality (QLT)
- ETF Deathwatch Criteria (objective criteria used to generate list)
- ETF Deathwatch Archives (past monthly issues)
Written By Ron Rowland From Invest With An Edge No positions in any of the securities mentioned.
Ron Rowland is the founder of Invest With An Edge and serves as the Executive Editor. He is also editor of AllStarInvestor.com and Chief Investment Officer of Capital Cities Asset Management (www.ccam.com). Quoted widely in the financial media, Ron is the industry go-to guy for sector rotation insight and investment strategies using ETFs and mutual funds.