Sixteen new names join the ETF Deathwatch for February. The new arrivals represent a wide cross-section of the exchange traded product landscape. Twelve are ETFs, four are ETNs, three are actively managed, four invest in bonds, three are commodity related, four invest in international equities, three are less than a year old, and two are more than five years old.
Meanwhile, 10 products came off the list due to increased assets, a pickup in trading activity, or both. They too represent a variety of product types, making it more art than science as to which products capture the attention of investors and which ones don't. Another three came off the list because they effectively died - their sponsors delisted, closed and liquidated them.
A net increase of three produces a current count of 315, consisting of 213 ETFs and 102 ETNs. From a percentage standpoint, 20% of all products are now on ETF Deathwatch. That number drops to 16% when looking at just ETFs and zooms to 50% for ETNs. Investors still overwhelmingly prefer the asset-backed structure of ETFs to the uncollateralized, unsecured debt structure of ETNs.
Age is no guarantee that a product will survive, as two of the funds added to the list of vulnerable products have been on the market for more than five years. United States Diesel-Heating Oil (UHN), launched in April 2008, seems to be tailor-made as a weather play, yet it can't even attract new assets during one of the coldest winters on record.
It's perhaps understandable why iShares Global Nuclear Energy (NUCL), launched in June 2008, is losing favor with investors. The outlook for nuclear energy is uncertain at best, and investors tend to favor industries that are growing versus those that appear to be dwindling.
The average age of products on Deathwatch increased from 41.4 to 42.2 months with 82 of them more than five years old. The average asset size held steady at $6.6 million, and 54 products have less than $2 million in assets. Eight products had zero volume throughout the month of January, and 160 (10%) saw no action on the last day of the month.
Here is the Complete List of 315 Products on ETF Deathwatch for February 2014 compiled using the objective ETF Deathwatch Criteria.
The 16 ETPs added to ETF Deathwatch for February:
- AdvisorShares Athena International Bear ETF (HDGI)
- AdvisorShares Madrona Domestic (FWDD)
- AdvisorShares Madrona International (FWDI)
- Credit Suisse Long/Short Liquid ETN (CSLS)
- EGShares Emerging Markets Dividend Growth (EMDG)
- Forensic Accounting ETF (FLAG)
- iShares Financials Bond (MONY)
- iShares Global Nuclear Energy (NUCL)
- iShares MSCI Colombia Capped (ICOL)
- KraneShares CSIChinaFive Year Plan ETF (KFYP)
- Market Vectors Renminbi Bond (CHLC)
- PowerShares DB 3x Italian T-Bond Futures ETN (ITLT)
- PowerShares DB German Bund Futures ETN (BUNL)
- RBS RogersEnhanced Commodity Index ETN (RGRC)
- Teucrium Soybean (SOYB)
- United StatesDiesel-Heating Oil (UHN)
The 10 ETPs removed from ETF Deathwatch due to improved health:
- AdvisorShares Meidell Tactical Advantage (MATH)
- AdvisorShares Pring Turner Business Cycle (DBIZ)
- Barclays ETN+ S&P 500 2x Long C 2009 ETN (BXUC)
- FlexShares Quality Dividend Dynamic (QDYN)
- iPath Pure Beta Cocoa ETN (CHOC)
- iPath Pure Beta Coffee ETN (CAFE)
- iShares Target Date 2010 (TZD)
- SPDR MSCI ACWI IMI (ACIM)
- SPDR S&P Telecom (XTL)
- WisdomTree Commodity Currency Strategy (CCX)
The 3 ETPs removed from ETF Deathwatch due to delisting:
- ETRACS Oil Futures Contango ETN (OILZ)
- PureFunds ISE Diamonds/Gemstone (GEMS)
- PureFunds ISE Mining Service (MSXX)
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.