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The number of exchange-traded products (ETPs) on ETF Deathwatch fell again this month. The count now stands at just 86 (56 ETFs and 30 ETNs), the lowest level since the November 2008 ETF Deathwatch list.

Does this mean the ETF industry is at full health? I’m not ready to jump to that conclusion for a couple of reasons. First, our list is based on trading activity, and and trading activity across the entire ETF spectrum was up +57% last month. If you assume that all ETFs had a 57% increase in trading, then only 66 of the 99 names on the May ETF Deathwatch list would have carried over to this month.

Second, the closing of 12 leveraged ETFs from Rydex means fewer products were eligible this month. Third, 116 new ETFs and ETNs came out in the last six months that are currently excluded from eligibility. Many of those products will find their way to this list in the next few months.

I think this all adds up to a temporary decline in the number of products on the list. My guess is that the Deathwatch list will be back up in triple digits before the summer is over.

There were 28 new funds launched last November, and now that they are at least six months old, they have lost their Deathwatch immunity. It appears to have been a pretty good crop because 26 of the 28 managed to avoid the list. The two that entered Deathwatch status are PIMCO 3-7 Year U.S. Treasury Index ETF (NYSEARCA:FIVZ) and TXF Large Companies ETF (TXF).

Many observers may be surprised that PIMCO now has two products on ETF Deathwatch: FIVZ and TENZ. Both are adorned with the PIMCO name and both represent widely followed benchmark bond categories. So what went wrong? In a word, the problem is marketing. PIMCO 7-15 Year U.S. Treasury Index Fund (NYSEARCA:TENZ) was launched more than eight months ago, but PIMCO has never announced this product – not even a press release. If they are counting on a “build it, they will come” asset-gathering approach, they may need to rethink that plan.

Meanwhile, no one who has read this column before should be surprised that E-TRACS ETNs are again occupying the top three slots this month. E-TRACS CMCI Short Platinum Excess Return ETN (NYSEARCA:PTD) takes top honors. According to my data sources, there was only a single trade in PTD all month – 100 shares changed hands on May 7. Another data source I use shows zero volume for the month.

Listed below are the 68 products on ETF Deathwatch for June that failed to generate at least $100,000 in average daily value traded (ADVT) during the past month.

ETF Deathwatch - June 2010

Rank Ticker Name Age (mths) Avg Daily Volume Avg Daily Value Traded
1 PTD E-TRACS CMCI Short Platinum Exc Ret ETN 25 5 $150
2 UBC E-TRACS CMCI Livestock Total Return ETN 26 125 $2,501
3 UBN E-TRACS CMCI Energy Total Return ETN 26 315 $4,380
4 RFF Grail RP Financials ETF 8 205 $5,460
5 JEM Barclays GEMS Currency Index ETN 28 130 $5,603
6 GBB iPath GBP/USD Exchange Rate ETN 37 145 $5,781
7 ADZ PowerShares DB Agriculture Short ETN 26 230 $8,786
8 BVT Elements Ben Graham Total Mkt Value ETN 22 880 $9,130
9 JYN iPath JPY/USD Exchange Rate ETN 37 155 $10,060
10 BHH HOLDRS B2B Internet ETF 125 21,433 $10,768
11 BVL Elements Ben Graham Large Cap Value ETN 22 1,345 $11,114
12 AGF PowerShares DB Agriculture Long ETN 26 840 $11,903
13 PGD Barclays Asian&Gulf Currency Reval. ETN 24 245 $12,245
14 FUE Elements MLCX Biofuels ETN 28 1,845 $13,049
15 DOD Elements Dogs of the Dow Total Return ETN 31 1,825 $13,225
16 GWO Elements CS Global Warming ETN 26 2,650 $16,612
17 TXF TXF Large Companies ETF 7 465 $16,752
18 OOK OOK, Inc. 7 645 $20,499
19 DPU PowerShares DB Commodity Long ETN 25 1,480 $21,788
20 GVT Grail American Beacon Large Cap Value 13 690 $21,861
21 MKH HOLDRS Merrill Lynch Market 2000+ 119 480 $22,373
22 EEH Elements Spec LgCap US Sector Mo ETN 34 2,705 $22,510
23 USV E-TRACS CMCI Silver Total Return ETN 26 885 $23,149
24 EEN Claymore/BNY Mellon EW Euro-Pacific LDRs 40 1,415 $23,828
25 UBD Claymore U.S. Capital Markets Bond ETF 28 470 $24,503
26 PBTQ PowerShares Global Biotech Portfolio 21 1,070 $25,017
27 EXB Claymore/Beacon Gbl Exch, Brkrs, & Asst Mgrs 36 2,060 $25,047
28 RPX Grail RP Growth ETF 8 925 $25,355
29 TZD iShares S&P Target Date 2010 Index Fund 19 880 $25,574
30 WMH HOLDRS Wireless 117 605 $25,704
31 PMA PowerShares Active Mega-Cap Portfolio 26 1,140 $25,722
32 UBM E-TRACS CMCI Industrial Metals TR ETN 26 1,415 $27,295
33 EKH HOLDRS Europe 2001 114 495 $27,339
34 JJS iPath DJ-UBS Softs ETN 24 675 $28,366
35 TZO iShares S&P Target Date 2035 Index Fund 19 950 $28,458
36 JYF WisdomTree Dreyfus Japan Yen 25 1,070 $30,799
37 JFT First Trust Enhanced 130/30 Large Cap ETN 25 1,207 $35,633
38 GRN iPath Global Carbon ETN 24 1,260 $36,065
39 TDD TDX Independence 2010 32 1,595 $36,920
40 JVS Javelin DJ Islamic Market International 11 870 $37,147
41 RPQ Grail RP Technology ETF 8 1,305 $37,655
42 ULQ Claymore U.S. Cap Mkts Micro-Trm Fxd Inc 28 778 $38,726
43 BDH HOLDRS Broadband ETF 124 4,000 $43,965
44 FDD First Trust DJ STOXX European Select Div 34 3,950 $46,216
45 PQZ PowerShares Active Alpha Multi-Cap 26 3,020 $50,633
46 PJO PowerShares FTSE RAFI Japan 36 1,375 $50,852
47 TZE iShares S&P Target Date 2015 Index Fund 19 1,725 $50,957
48 IWL iShares Russell Top 200 Index Fund 8 1,995 $52,382
49 PQSC PowerShares FTSE Nasdaq Small Cap 26 2,220 $52,861
50 DJCI UBS E-TRACS DJ-UBS Commodity TR ETN 7 210 $53,586
51 CRBA Jefferies|TR/J CRB Global Agriculture Equity 7 1,470 $54,053
52 TZG iShares S&P Target Date 2020 Index Fund 19 1,860 $55,654
53 TZI iShares S&P Target Date 2025 Index Fund 19 1,900 $57,105
54 PAO PowerShares Auto Balanced Growth NFA 25 5,210 $58,117
55 TENZ PIMCO 7-15 Year U.S. Treasury Index Fund 9 770 $59,182
56 BSC Elements Ben Graham Small Cap Value ETN 22 5,285 $59,433
57 BDG PowerShares DB Base Metals Lng ETN 24 2,890 $59,723
58 GRES IQ ARB Global Resources ETF 7 2,340 $60,469
59 LD iPath DJ-UBS Lead ETN 24 1,350 $63,220
60 RWG Grail RP Focused Large Cap Growth ETF 8 2,425 $65,244
61 FIVZ PIMCO 3-7 Year U.S. Treasury Index ETF 7 870 $66,715
62 PTRP PowerShares Glb Progressive Transport. 21 2,690 $68,969
63 UAG E-TRACS CMCI Agriculture TR ETN 26 3,825 $70,290
64 TGR iShares S&P Target Date Retirement Inc. 19 2,545 $71,925
65 MCRO IQ Hedge Macro Tracker ETF 12 2,810 $72,970
66 PNXQ PowerShares Nasdaq Next Q 26 2,955 $74,635
67 DEF Claymore/Sabrient Defender 42 3,530 $75,060
68 ERO iPath EUR/USD Exchange Rate ETN 37 1,530 $75,144
69 UBG E-TRACS CMCI Gold Total Return ETN 26 2,305 $77,353
70 CRBI Jefferies|TR/J CRB Global Ind Metals Equity 7 2,145 $79,983
71 BWV iPath CBOE S&P 500 BuyWrite Index ETN 37 1,880 $81,047
72 TDX TDX Independence In-Target 32 3,234 $81,050
73 FUD E-TRACS CMCI Food Total Return ETN 26 4,400 $82,097
74 TZL iShares S&P Target Date 2030 Index Fund 19 2,790 $82,713
75 TDH TDX Independence 2020 32 4,002 $83,540
76 PLK PowerShares Active Low Duration 26 3,315 $84,045
77 TWQ ProShares UltraShort Russell3000 11 3,575 $84,860
78 RYU Rydex S&P Equal Weight Utilities 43 1,900 $85,761
79 RWV RevenueShares Navellier Overall A-100 16 2,740 $86,230
80 PZJ PowerShares Zacks Small Cap 52 4,535 $87,514
81 IPW SPDR S&P International Energy 23 3,785 $88,614
82 TDN TDX Independence 2030 32 4,831 $88,872
83 NUCL iShares S&P Global Nuclear Energy 24 2,520 $91,508
84 IFEU iShares FTSE EPRA/NAREIT Europe 31 3,755 $92,606
85 IFNA iShares FTSE NAREIT North America 31 2,560 $93,350
86 XGC Claymore/BNY Mellon Intl Small Cap LDRs 38 5,225 $97,928

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 for June 2010