8 More ETFs Join Deathwatch in December


NEW YORK (TheStreet) -- Eight new names are joining ETF Deathwatch for December, and nine products are coming off the list.

Six are leaving due to increased investor interest, and three ETFs are exiting because they are now dead, delisted, and liquidated. ETF Deathwatch now consists of 374 (274 ETFs and 100 ETNs) names from the 1,445 listed for trading.

Even though there is a risk these exchange-traded products (ETPs) could eventually close, liquidity risk is present today. For example, the iPath US Treasury 5-Year Yield Bull DFVL hasn't traded since Sept. 13. It is just one of eight Zombie products going the entire month of November with zero volume.

iPath Short Enhanced MSCI EAFE MFSA is quoted Friday with a bid price of $37.14 and an ask of $112.10 (a spread of $74.96). Even more troubling is the fact that there are only 100 shares available at each end of those extremes.

The average product on ETF Deathwatch is more than 31 months old and has $6.3 million in assets. Sponsor patience varies widely, with some closing non-profitable products within their first year while others seem willing to subsidize products forever.

There are currently 44 exchange-traded funds and exchanged-traded notes on the list that have been on the market for more than five years. The quantity of funds with less than $2 million in assets stands at 60. The complete list of 374 products on ETF Deathwatch for December 2012 can be found here.

The ETPs added to ETF Deathwatch for December:
    1. AdvisorShares Global Echo ETF GIVE 2. AlphaClone Alternative Alpha ETF ALFA 3. Credit Suisse Merger Arbitrage Liquid 2x Monthly ETN CSMB 4. C-Tracks Citi Volatility Index Total Return ETN CVOL 5. Guggenheim S&P Equal Weight Financials RYF 6. iShares MSCI Denmark Capped Investable Market EDEN 7. QuantShares U.S. Market Neutral Value CHEP 8. SPDR S&P 400 Mid Cap Value ETF MDYV

The ETPs removed from ETF Deathwatch due to improved health:
    1. Direxion Daily Healthcare Bull 3x CURE 2. ETRACS DJ-UBS Commodity 2-4-6 Blended Futures ETN BLND 3. iPath Seasonal Natural Gas ETN DCNG 4. iShares Asia/Pacific Dividend 30 DVYA 5. iShares MSCI China Small Cap Index Fund ECNS 6. ProShares Ultra MSCI Europe UPV

The ETPs removed from ETF Deathwatch due to death and delisting:
    1. QuantShares U.S. Market Neutral Anti-Momentum NOMO 2. QuantShares U.S. Market Neutral High Beta BTAH 3. QuantShares U.S. Market Neutral Quality QLT

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

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