Ron Rowland: Ten new names joined the ETF Deathwatch and four left. The net increase of six puts the count at 332, consisting of 223 ETFs and 109 ETNs. The average product on the list is 38 months old. BLDRS Europe 100 ADR (ADRU) is the oldest product on the list at 130 months, and 75 of these ETPs have been on the market more than five years.
Age is one thing, but product asset levels are where the rubber meets the road for ETF sponsors. The median asset level of the ETF Deathwatch membership list is $4.2 million, and the median expense ratio is 0.75%. Therefore, the typical product on this list generates less than $32k in revenue, far short of what is required to be profitable. The iPath US Treasury 5-Year Yield Bull ETN (DFVL) is currently the smallest with less than $0.5 million in assets.
iPath Short Enhanced MSCI Emerging Markets ETN (EMSA) is the least actively traded ETP and has not traded since November of 2012. Its bid/ask spread of $46.75/$140.23 is beyond ridiculous. I thought the NYSE would have a little more pride than to let something like this be a listed-security, but I guess the exchange is satisfied as long as the listing fee check doesn’t bounce. EMSA is the only ETP that hasn’t logged a trade in 2013, but eight others went the entire month of August without any activity and 164 generated zero volume on the last day of the month.
Here is the Complete List of 332 Products on ETF Deathwatch for September 2013 based on the objective ETF Deathwatch Criteria.
The 10 ETPs added to ETF Deathwatch for September:
- Direxion All Cap Insider Sentiment (KNOW)
- Direxion Daily 7-10 Year Treasury Bull 3x (TYD)
- EGShares India Consumer (INCO)
- First Trust ISE Global Engineering & Construction (FLM)
- First Trust ISE Global Platinum (PLTM)
- iPath DJ-UBS Energy ETN (JJE)
- PowerShares KBW Capital Markets (KBWC)
- ProShares Global Listed Private Equity (PEX)
- RevenueShares ADR (RTR)
- SPDR S&P International Technology (IPK)
The 4 ETPs removed from ETF Deathwatch due to improved health:
- Direxion Daily Total Bond Market Bear 1x (SAGG)
- Guggenheim Russell 2000 Equal Weight (EWRS)
- iShares MSCI Denmark Capped (EDEN)
- PowerShares Fundamental Pure Large Value (PXLV)
This article is brought to you courtesy of Ron Rowland from Invest With an Edge.