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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.

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

Past issues of ETF Deathwatch are available here.

Disclosure covering writer, editor, and publisher: 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.

Source: ETF Deathwatch, January 2010: 118 for the New Year