Friday, November 1, 2013

November ETFG Liquidation Watch List

Today is the 1st of November and therefore marks the release of the ETF Global ETP Liquidation Watch List.  The ETFG Liquidation Watch List is not meant to predict that each month’s listings are those ETPs on the brink of closing.  Rather, the list is intended to assist investors and financial professionals to simply be aware that these funds contain all three characteristics which we think would reasonably bring them under the scrutiny of their respective issuer.

These three criteria are simple and very straightforward:

·         Assets Under Management – ETP currently has AUM of less than $5M
·         Age – ETP has been in existence more than 2 years
·         Performance – ETP has negative trailing twelve month performance

Combined, these parameters identify those ETPs that have had enough time (2 years) to gather meaningful assets ($5M) in order to become profitable but have not done so and additionally have had losing performance for the last twelve month period.

November Highlights: On the November List there are 80 ETPs which is significantly more than the 61 that were on the October List.  Interestingly, out of the approximately 1,500 ETPs in the universe, there were 200 that had less than $5M in assets under management, 465 that had negative performance for the trailing twelve month period and 1,195 that were eligible because they were issued more than two years ago. Please be sure to check the entire list as you are selecting ETPs for your and/or your clients’ portfolios.

Thank you for reading ETFG Daily Perspectives and please be sure to see our monthly commentary on this topic at

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