Flexible Plan Investments started tracking non-viable ETFs a decade ago. Since then, their due diligence has revealed a shocking number of funds that never got the traction they needed to become credible investment solutions. Even now, as this recent update shows, hundreds of funds are going nowhere fast.
Forty-one exchange-traded products (“ETPs”) were added to the ETF Deathwatch list in June and 12 were removed, increasing the total to 322.
Eleven products were removed due to improved health and one was delisted.
Three products were added to the list in June due to low assets under management (“AUM”) and 38 were added due to low trading volume. The low volume in these products could be due to the nature of their investment product.
These ETPs may have enough AUM to keep them from closure. However, our system takes into account both AUM and volume. If both remain low, these funds may be considered for closure.
Forty-seven ETPs on Deathwatch this month have been in the market for at least 10 years. These include many short ETPs.
The average asset level of the threatened ETPs on ETF Deathwatch decreased from $9.60 million to $9.35 million, and 24 products had less than $2 million in assets.
The average age of products on the list decreased from 54.44 months to 51.52 months, and the number of products at least 5 years of age remained at 105. The largest ETP on the list had an AUM of $24.76 million, while the smallest had assets of just $487,312.80.
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