The number of exchange traded product ("ETP") listings increased in November, ending the record-breaking three-month streak of declines. Nine new introductions and three closures put the month-end count at 1,445 (1,235 ETFs and 210 ETNs). This is below the quantity of 1,457 at the end of April, putting product growth in negative territory the past seven months. It is also 45 less than the all time high of 1,490 established on August 15, 2012.
Does this imply the recent consolidation is over? Not by a long shot. There are currently 359 products with less than $10 million in assets. Some analysts believe the break-even point for ETFs could be as high as $75 million to $100 million. There are clearly hundreds of unprofitable ETFs and ETNs on the market. Additional closures are inevitable. It would be premature to claim the industry consolidation is over.
The calendar year closure count stands at 92 as of the end of November. At least six more products intend to close in December. If two more decide to admit defeat, then the 2012 count could reach 100. Assets increased +2.1% in November to $1.3 trillion. Only 26 ETFs have assets exceeding $10 billion, but they account for more than half (50.4%) of all ETP assets. The quantity of ETPs above the $1 billion threshold now number 179, six more than a month ago. These 179 represent just 12.4% of the quantity of listed products while grabbing 88.1% of the assets.
Trading activity picked up for the third month in a row with total dollar volume reaching $1.2 trillion. SPDR S&P 500 (NYSEARCA:SPY) was responsible for 35.2% of all ETP dollars traded. ETPs averaging more than $1 billion per day in dollar volume held steady at six, while capturing a 54.0% share. Products averaging more than $100 million per day declined from 68 to 63 while capturing 87.4% of trading activity.
|November 2012 Month End||ETFs||ETNs||Total|
|Currently Listed U.S.||1,235||210||1,445|
|Listed as of 12/31/2011||1,166||203||1,369|
|New Introductions for Month||4||5||9|
|Delistings/Closures for Month||3||0||3|
|Net Change for Month||+1||+5||+6|
|New Introductions 6 Months||45||10||55|
|New Introductions YTD||145||23||168|
|Net Change YTD||+69||+7||+76|
|Assets Under Mgmt ($ billion)||$1,298||$16.6||$1,314|
|% Change in Assets for Month||+2.2%||-3.8%||+2.1%|
|Qty AUM > $10 Billion||26||0||26|
|Qty AUM > $1 Billion||176||3||179|
|Qty AUM > $100 Million||549||22||571|
|Monthly $ Volume ($ billion)||$1,167||$32.3||$1,200|
|% Change in Monthly $ Volume||+7.8%||+20.5%||+8.2%|
|Avg Daily $ Volume > $1 Billion||5||1||6|
|Avg Daily $ Volume > $100 Million||61||2||63|
|Avg Daily $ Volume > $10 Million||216||9||225|
Data sources: Daily prices and volume of individual ETPs from Norgate Premium Data. Fund counts and all other information compiled by Invest With An Edge.
New products launched in November (sorted by launch date):
- Pyxis/iBoxx Senior Loan ETF (NYSEARCA:SNLN) [Pyxis Enters ETF Arena With Senior Junk Fund]
- RBS RogersEnhanced Agriculture ETN (NYSEARCA:RGRA) [RBS Rolls Out Five Rogers Enhanced Commodity ETNs]
- RBSRogersEnhanced Commodity Index ETN (NYSEARCA:RGRC)
- RBSRogersEnhanced Energy ETN (NYSEARCA:RGRE)
- RBSRogersEnhanced Industrial Metals ETN (NYSEARCA:RGRI)
- RBSRogersEnhanced Precious Metals ETN (NYSEARCA:RGRP)
- PureFunds ISE Diamonds/Gemstone ETF (NYSEARCA:GEMS) [Three New Pure Play ETFs From FactorShares PureFunds]
- PureFunds ISE Mining Service ETF (NYSEARCA:MSXX)
- PureFunds ISE Junior Silver ETF (NYSEARCA:SILJ)
Product closures/delistings in November (sorted by name):
- QuantShares U.S.Mkt Neutral Anti-Momentum (NOMO) [QuantShares Closing 3 Market Neutral ETFs]
- QuantSharesU.S.Market Neutral High Beta (BTAH)
- QuantSharesU.S.Market Neutral Quality (QLT)
Product changes in November:
- iShares MSCI Belgium Investable Market Index Fund (NYSEARCA:EWK) changed its name and underlying index effective November 9, 2012. The new name is iShares MSCI Belgium Capped Investable Market Index Fund (EWK).
Announced Product Changes for Coming Months:
- WisdomTree will close three ETFs (two actively managed currency funds and an earnings weighted large cap growth fund) with December 3 being the last of trading for JYF, SZR, and ROI.
- IndexIQ will close the IQ Emerging Markets Mid Cap ETF (EMER) with the last day of trading set for December 18 (EMER press release).
- Guggenheim will terminate on or about December 31 the Guggenheim BulletShares 2012 Corporate Bond (NYSEARCA:BSCC) and the Guggenheim BulletShares High Yield Corporate Bond (NYSE:BSJC) ETFs due to their planned maturity and liquidation.
- Vanguard fired MSCI as the underlying index provider for 22 of its funds. During the first half of 2013, six international funds will move from MSCI to FTSE indexes while 16 domestic products will transition from MSCI to CRSP indexes.
Disclosure covering writer, editor, publisher, and affiliates: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.