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Sixty-seven exchange traded products ("ETPs") saw their last day of listed trading in 2013. This is the second highest annual death toll for the relatively young industry, surpassed only by the 102 closures of the prior year. The departed are a mixture of 50 ETFs and 17 ETNs, and the lifetime count now stands at 380 (324 ETFs and 56 ETNs).

Closures affected 16 different brands, with FactorShares, KEYnotes, and STREAM becoming brands that are no longer with us. We welcomed the closure of FactorShares, as it removed an industry blight due to these ETFs having ludicrous expense ratios as high as 33%. JPMorgan closed out its only KEYnotes ETN in October along with two other ETNs under the JPMorgan brand. However, it did not liquidate the KEYnotes product at the time. JPMorgan is now down to a single ETP, the JPMorgan Alerian MLP Index ETN (NYSEARCA:AMJ). AMJ has ceased creating new shares though, rendering it a broken product subject to price premiums.

BNP Paribas entered the U.S. ETF market in 2012 with the introduction of the STREAM S&P Dynamic Roll Global Commodities ETF (NYSEARCA:BNPC). BNP Paribas committed ETF sponsor suicide in April of 2013 by closing and delisting the fund without any plan to liquidate the assets and return the money to shareholders. Eventually, BNP Paribas came around, but it took 199 days to render payments, providing an excellent example of why investors should sell shares prior to delisting and avoid the liquidation process. That may seem extreme, but Credit Suisse finally got around to liquidating three ETNs in 2013 that it delisted in 2009, taking 1,422 days for shareholders to get their money.

Most of 2013's closures had become Zombie ETFs, and 57 of the 67 (85%) were on ETF Deathwatch at the time of their closure announcements. Typically, closures are the result of failing to attract enough assets, and in turn, not generating enough revenue for the sponsor. There were some exceptions, like the triggering of an early termination event to prevent the price from going to zero for two ETNs. Three bond ETFs had graceful closings due to reaching their planned maturity and liquidation dates. Guggenheim had the most closures of funds not on ETF Deathwatch, suggesting the firm has been aggressive in removing unprofitable products from its lineup.

The average age of funds that closed in 2013 was 37.7 months (3.1 years). This is greater than the 28.4-month average and much greater than the 18.9-year median lifespan of all 380 closed products. Sponsors were apparently willing to subsidize these non-profitable products a little longer in the hopes the bull market would help them attract more assets.

The table below is currently sorted by product name.

ETF and ETN Closures of 2013


#TickerNameLast DayDeathwatchNotes
1SSAMAdvisorShares Rockledge SectorSAM06/14/2013Yes1
2BXDCBarclays ETN+ S&P 500 Lvrgd 2x Short C ETN01/10/2013Yes3
3INSDDirexion Large Cap Insider Sentiment01/18/2013Yes
4VSPRDirexion S&P 1500 DRRC Volatility Response01/18/2013Yes
5VLATDirexion S&P Latin America 40 DRRC Vlty Res01/18/2013Yes
6LGEMEGShares Basic Materials GEMS10/04/2013Yes
7GGEMEGShares Consumer Goods GEMS10/04/2013Yes
8VGEMEGShares Consumer Services GEMS10/04/2013Yes
9EMTEGShares Emerging Markets Metals & Mining10/04/2013Yes
10OGEMEGShares Energy GEMS10/04/2013Yes
11FGEMEGShares Financials GEMS10/04/2013Yes
12AGEMEGShares GEMS Composite10/04/2013Yes
13HGEMEGShares Health Care GEMS10/04/2013Yes
14IGEMEGShares Industrials GEMS10/04/2013Yes
15QGEMEGShares Technology GEMS10/04/2013Yes
16TGEMEGShares Telecom GEMS10/04/2013Yes
17UGEMEGShares Utilities GEMS10/04/2013Yes
18GWOELEMENTS CS Global Warming ETN02/25/2013Yes
19PTDETRACS CMCI Short Platinum ER ETN06/05/2013Yes
20BLNDETRACS DJ-UBS Comdty 2-4-6 Blnd Fut ETN06/05/2013Yes
21SSDDETRACS ISE Solid State Drive ETN06/05/2013Yes
22LSKYETRACS Mth 2x ISE Cloud Computing ETN06/05/2013Yes
23SSDLETRACS Mth 2x ISE Solid State Drive ETN06/05/2013Yes
24EIPLETRACS Mth 2x Next Generation Internet ETN06/05/2013Yes
25EIPOETRACS Next Generation Internet ETN06/05/2013Yes
26FSGFactorShares 2X: Gold Bull/S&P500 Bear11/21/2013Yes
27FOLFactorShares 2X: Oil Bull/S&P500 Bear11/21/2013Yes
28FSEFactorShares 2X: S&P500 Bull/TBond Bear11/21/2013Yes
29FSUFactorShares 2X: S&P500 Bull/USD Bear11/21/2013Yes
30FSAFactorShares 2X: TBond Bull/S&P500 Bear11/21/2013Yes
31RSUGuggenheim 2x S&P 50003/15/2013-
32ABCSGuggenheim ABC High Dividend03/15/2013Yes
33FAAGuggenheim Airline03/15/2013-
34BSCDGuggenheim BulletShares 2013 Corp Bond12/30/2013-2
35BSJDGuggenheim BulletShares 2013 HY Bond12/30/2013-2
36RSWGuggenheim Inverse 2x S&P 50003/15/2013-
37EWEFGuggenheim MSCI EAFE Equal Weight03/15/2013-
38EWMDGuggenheim S&P MidCap 400 Equal Weight03/15/2013Yes
39EWSMGuggenheim S&P SmallCap 600 Equal Weight03/15/2013Yes
40WXSPGuggenheim Wilshire 4500 Completion03/15/2013Yes
41WFVKGuggenheim Wilshire 5000 Total Market03/15/2013-
42RMBGuggenheim Yuan Bond06/14/2013Yes
43MFSAiPath Short Enh -2x MSCI EAFE Index ETN09/16/2013Yes3
44MUABiShares 2013 S&P AMT-Free Muni Term ETF08/15/2013-2
45ALTiShares Diversified Alternative Trust05/28/2013-1
46DSXJJPM Qtrly Dbl Short US 10-Yr Treas Futures ETN10/02/2013Yes
47DSTJJPM Qtrly Dbl Short US Long Treas Futures ETN10/02/2013Yes
48JFTKEYnotes FT Enhanced 130/30 Large Cap ETN10/09/2013Yes
49NASIPax MSCI North America ESG03/13/2013Yes
50PLKPowerShares Active Low Duration02/26/2013Yes1
51PMAPowerShares Active Mega-Cap Portfolio02/26/2013Yes1
52CVRTPowerShares Convertible Securities Portfolio02/26/2013Yes
53PJBPowerShares Dynamic Banking02/26/2013Yes
54PICPowerShares Dynamic Insurance02/26/2013Yes
55PKOLPowerShares Global Coal Portfolio02/26/2013-
56PKNPowerShares Global Nuclear Energy02/26/2013Yes
57PSTLPowerShares Global Steel Portfolio02/26/2013Yes
58PWNDPowerShares Global Wind Energy02/26/2013Yes
59PTOPowerShares Ibbotson Alternative Completion02/26/2013Yes
60PYHPowerShares Morningstar StockInvestor Core02/26/2013Yes
61PAOPowerShares Riverfront Tactical Bal Growth02/26/2013Yes
62PCAPowerShares Riverfront Tactical Gr & Inc02/26/2013Yes
63BNPCSTREAM S&P Dynamic Roll Global Commodities04/12/2013Yes
64IPLTVelocityShares 2x Inverse Platinum ETN12/26/2013Yes
65LPLTVelocityShares 2x Long Platinum ETN12/26/2013Yes
66DOILVelocityShares 3x Inverse Brent Crude ETN12/26/2013Yes
67UOILVelocityShares 3x Long Brent Crude ETN12/26/2013Yes

Showing 1 to 67 of 67 entries

Notes: 1) actively managed, 2) reached planned maturity, 3) hit early termination trigger, 4) less than 6 months at time of closure announcement. All exchange traded notes are identified with "ETN" as part of their name description.

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.

Source: Complete List Of 67 ETP Closures For 2013