ETF Deathwatch For May 2018

Seeking Alpha

By Jason Teed

ETF Deathwatch for May had 62 additions, 16 exits due to improved health, and 52 closures. Our suspicion is that first-quarter market volatility and ETN failures led many fund managers to reassess the risk of their entire lines, leading to a large number of closures.

Of the exits, 38 were ETNs and 10 were ETFs. The exit of more ETNs may signify that fund families are reconsidering the profitability and risks of their fund lineups.

More than two-thirds of the new additions to the list were young funds that recently exited our six-month grace period for new funds. All but two were added to the list due to low volume (less than $1 million). The other two had less than $5 million in AUM for three consecutive months. Additions included more global ETFs than domestic, possibly due to tariff considerations among other global events.

The majority of closures were ETNs, and iPath ETNs closed the most. This was largely due to the issuer’s (Barclays (NYSE:BCS)) wish to restructure these products. They have been relaunched as new funds with new tickers and new symbols. As their fee structure and creation/redemption structures are significantly different from the original funds, we’ve chosen to treat them as new funds with regard to ETF Deathwatch. We may see some of these products again, but only after their initial six-month period expires.

Fifty ETFs and ETNs on Deathwatch this month have been in the market for more than 10 years. These funds include BLDRS Asia 50 ADR ETF (NASDAQ:ADRA) and BLDRS Europe 100 ADR (NASDAQ:ADRU).

The average asset level of the threatened ETFs on ETF Deathwatch increased from $6.78 million to $7.75 million, and the number of products with less than $2 million in assets decreased from 83 to 52. The average age decreased from 54.84 to 49.01 months, and the number of products more than 5 years of age dropped from 168 to 131. The largest ETF on the list had an AUM of $24.263 million, while the smallest had assets of just $400,800.

Here is the Complete List of 422 ETFs and ETNs on ETF Deathwatch for May 2018 compiled using the objective ETF Deathwatch Criteria.

The 54 ETFs added to ETF Deathwatch for May:

  1. iShares Russell 1000 Pure Growth US Revenue ETF (NASDAQ:AMCA)
  2. Bernstein US Research (BATS:BERN)
  3. Bernstein Global Research (BATS:BRGL)
  6. AAM S&P Emerging Markets Sect (NYSEARCA:EEMD)
  7. iShares MSCI Emerging Markets ex China (NASDAQ:EMXC)
  8. Elkhorn S&P High Quality Preferred (BATS:EPRF)
  9. First Trust Brazil AlphaDEX ETF (NASDAQ:FBZ)
  10. Franklin FTSE Australia ETF (NYSEARCA:FLAU)
  11. Franklin FTSE Canada ETF (NYSEARCA:FLCA)
  12. Franklin FTSE France ETF (NYSEARCA:FLFR)
  13. Franklin FTSE United Kingdom (NYSEARCA:FLGB)
  14. Franklin FTSE Germany ETF (NYSEARCA:FLGR)
  15. Franklin FTSE Italy (NYSEARCA:FLIY)
  16. Franklin FTSE Mexico (NYSEARCA:FLMX)
  17. iShares Edge MSCI Multifactor Financials ETF (BATS:FNCF)
  18. Sage ESG Intermediate Credit ETF (BATS:GUDB)
  19. Wisdom Tree Middle East Dividend ETF (NASDAQ:GULF)
  20. Invesco High Income 2024 Target (NYSE:IHTA)
  21. Hancock Multifactor Material (NYSEARCA:JHMA)
  22. KraneShares MSCI China Environment ETF (NYSEARCA:KGRN)
  23. iShares 10+ Year Investment Grade Corp Bond ETF (BATS:LLQD)
  24. Global X Longevity ETF (NASDAQ:LNGR)
  25. Global X Iconic US Brands ETF (BATS:LOGO)
  26. IQ MacKay Shields Municipal Insured ETF (NYSEARCA:MMIN)
  27. Oppenheimer Russell 2000 Dynamic Multifactor ETF (BATS:OMFS)
  28. Oppenheimer Russell 1000 Momentum Factor ETF (BATS:OMOM)
  29. O’Shares FTSE Russell Intl Quality Dividend (NYSEARCA:ONTL)
  30. Oppenheimer Russell 1000 Quality Factor ETF (BATS:OQAL)
  31. The Organics ETF (NASDAQ:ORG)
  32. Oppenheimer Russell 1000 Size Factor ETF (BATS:OSIZ)
  33. Oppenheimer Russell 1000 Value Factor ETF (BATS:OVLU)
  34. Oppenheimer Russell 1000 Low Volatility Factor ETF (BATS:OVOL)
  35. Oppenheimer Russell 1000 Yield Factor ETF (BATS:OYLD)
  36. Invesco FTSE RAFI Asia Pac ex-Japan ETF (NYSE:PAF)
  37. Direxion Daily Pharmaceutical and Medical 3x ETF (NYSEARCA:PILL)
  38. VanEck Vectors Poland ETF (NYSEARCA:PLND)
  39. Principal Sustainable Momentum ETF (NASDAQ:PMOM)
  40. Principal Contrarian Value ETF (NASDAQ:PVAL)
  41. Principal International Multi-Factor ETF (NASDAQ:PXUS)
  42. Oppenheimer International Revenue ETF (BATS:REFA)
  43. First Trust Developed Intl Equity Select ETF (NASDAQ:RNDM)
  44. First Trust US Equity Dividend Select ETF (NASDAQ:RNDV)
  45. First Trust Large Cap US Equity Select ETF (NASDAQ:RNLC)
  46. Reverse Cap Weighted US Large Cap ETF (BATS:RVRS)
  47. First Trust SMID Cap Rising Dividend Achievers ETF (NASDAQ:SDVY)
  48. Global X Fertilizers/Potash ETF (NYSEARCA:SOIL)
  49. iShares Edge MSCI Multifactor Tech ETF (BATS:TCHF)
  50. ProShares Ultra Consumer Services (NYSEARCA:UCC)
  51. United States Diesel-Heating Oil (UHN
  52. ProShares Ultra Utilities (NYSEARCA:UPW)
  53. Virtus WMC Global Factor Opportunities ETF (NYSEARCA:VGFO)
  54. Spirited Funds/ETFMG Whiskey & Spirits ETF (NYSEARCA:WSKY)

The 8 ETNs added to ETF Deathwatch for May:

  1. VelocityShares VIX Tail Risk ETN (NYSEARCA:BSWN)
  2. UBS ETRACS Monthly Pay 2x Diversified High Income ETN (NYSEARCA:DVHL)
  3. VelocityShares VIX Variable ETN (NYSEARCA:LSVX)
  4. UBS ETRACS Monthly Pay 2x Mortgage REIT ETN (NYSEARCA:MRRL)
  5. Credit Suisse X-Links WTI Crude Oil ETN (NYSEARCA:OIIL)
  6. VelocityShares Long LIBOR ETN (NYSEARCA:ULBR)
  7. UBS ETRACS ProShares Daily 3x Inverse Crude Oil ETN (NYSEARCA:WTID)
  8. iPath S&P 500 Dynamics VIX ETN (NYSEARCA:XVZ)

The 16 ETFs removed from ETF Deathwatch due to improved health:

  1. First Trust Nasdaq Oil and Gas ETF (NASDAQ:FTXN)
  2. Xtrackers MSCI All World Ex-US High Dividend Yield ETF (NYSEARCA:HDAW)
  3. WisdomTree Negative Duration High Yield (NASDAQ:HYND)
  4. iShares Edge Investment Grade Advanced (BATS:IGEB)
  5. NuShares Short-Term REIT ETF (BATS:NURE)
  6. NuShares EY 1-5 Year US Aggregate Bond ETF (NYSEARCA:NUSA)
  7. Hartford Multifactor REIT ETF (NYSEARCA:RORE)
  8. WisdomTree Bloomberg Floating Rate ETF (NYSEARCA:USFR)
  9. ProShares Inflation Expectations (NYSEARCA:RINF)
  10. Hartford Multifactor Global SmallCap (NYSEARCA:ROGS)
  11. iShares Russell 2500 ETF (BATS:SMMD)
  12. Direxion Daily S&P 500 Bull 2x ETF (NYSEARCA:SPUU)
  13. ETF Industry Exposure & Financial Service (NYSEARCA:TETF)
  14. FlexShares Currency Hedged Morningstar ex-US Factor Tilt Index ETF (NYSEARCA:TLDH)
  15. WBI BullBear Global Rotation ETF (NYSEARCA:WBIR)
  16. ProShares Short FTSE China 50 ETF (NYSEARCA:YXI)

The 52 ETFs/ ETN that were closed:

  1. DB Agriculture Double Short ETN (NYSEARCA:AGA)
  2. Amplify Yields Shares Oil Hedged (BATS:AMLX)
  3. Aytu Bioscience (NYSEARCA:AYT)
  4. Belon Public Joint Stock Company (NYSEARCA:BLNG)
  5. Guggenheim BulletShares 2017 Corp Bond ETF (NYSEARCA:BSCH)
  6. CBOE S&P 500 BuyWrite Index ETN (NYSEARCA:BWV)
  7. iPath Pure Beta Coffee ETN (CAFÉ)
  8. iPath Pure Beta Cocoa ETN (NYSEARCA:CHOC)
  9. iPath Pure Beta Cotton ETN (NYSEARCA:CTNN)
  10. iPath Pure Beta Copper ETN (NYSEARCA:CUPM)
  11. Xtrackers MSCI Brazil Hedged Equity (NYSEARCA:DBBR)
  12. Xtrackers MSCI EAFE Small Cap Hedged (BATS:DBES)
  13. Xtrackers MSCI Mexico Hedged Equity (NYSEARCA:DBMX)
  14. iPath Seasonal Natural Gas ETN (NYSEARCA:DCNG)
  15. iPath Pure Beta Agriculture ETN (NYSEARCA:DIRT)
  16. Elkhorn Commodity Rotation Strategy (NASDAQ:DWAC)
  17. iPath Long Enhanced MSCI Emerging Markets Index (NYSEARCA:EMLB)
  19. iPath Pure Beta Aluminum (NYSEARCA:FOIL)
  20. First Trust Taiwan AlphaDEX Fund (FTW)
  21. Barclays Capital Inc iPath GBP/USD Exchange Rate ETN (NYSEARCA:GBB)
  22. Global Carbon ETN (NYSEARCA:GRN)
  23. iPath Pure Beta Softs (NYSEARCA:GRWN)
  24. iPath Pure Beta (NYSEARCA:HEVY)
  25. Optimized Currency Carry ETN (NYSEARCA:ICI)
  26. iPath Inverse S&P 500 Inverse (NYSEARCA:IVOP)
  28. iPath Bloomberg Energy Total Return (NYSEARCA:JJE)
  29. Bloomberg Precious Metals Sub TR ETN (NYSEARCA:JJP)
  30. iPath Bloomberg Softs SubIndex Total Return (NYSEARCA:JJS)
  31. iPath Bloomberg Tin SubIndex To (NYSEARCA:JJT)
  32. iPath Bloomberg Aluminum SubIndex Total Return (NYSEARCA:JJU)
  33. JPY/USD Exchange Rate ETN (NYSEARCA:JYN)
  34. iPath Pure Beta Lead ETN (NYSEARCA:LEDD)
  35. iPath Pure Beta Livestock ETN (NYSEARCA:LSTK)
  36. Meidell Tactical Advantage ETF (NYSEARCA:MATH)
  37. Long Enhanced MSCI EAFE Index ETN (NYSEARCA:MFLA)
  38. iPath Pure Beta Nickel ETN (NYSEARCA:NINI)
  39. iPath Pure Beta Energy ETN (NYSEARCA:ONG)
  40. iPath Asian & Gulf Currency Revaluation ETN (NYSEARCA:PGD)
  41. iPath Bloomberg Platinum Sub TR ETN (NYSEARCA:PGM)
  42. UBS ETRACS CMCI Long Platinum Total Return ETN (NYSEARCA:PTM)
  43. Reliance Communications Ltd (BATS:RCOM)
  44. iPath Long Extended Russell 1000 TR ETN (NYSEARCA:ROLA)
  45. iPath Long Extended Russell 200 (NYSEARCA:RTLA)
  46. iPath Pure Beta S&P GSCI Weighted ETN (NYSEARCA:SBV)
  47. iPath Long Extended S&P 500 TR Index ETN (NYSEARCA:SFLA)
  48. iPath Pure Beta Sugar ETN (NYSEARCA:SGAR)
  49. Active Alts Contrarian ETF (NASDAQ:SQZZ)
  50. iPath Pure Beta Grains ETN (NYSEARCA:WEET)
  51. Elevation ETF (NYSEARCA:WTRX)
  52. iPath Inverse S&P 500 VIX ST Fut ETN (NYSEARCA:XXV)

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