The number of exchange traded product (“ETP”) listings increased in November, ending the record-breaking three-month streak of declines. Nine new introductions and three closures put the month-end count at 1,445 (1,235 ETFs and 210 ETNs). This is below the quantity of 1,457 at the end of April, putting product growth in negative territory the past seven months. It is also 45 less than the all time high of 1,490 established August 15, 2012.
Does this imply the recent consolidation is over? Not by a long shot. There are currently 359 products with less than $10 million in assets. Some analysts believe the break-even point for ETFs could be as high as $75 million to $100 million. There are clearly hundreds of unprofitable ETFs and ETNs on the market. Additional closures are inevitable. It would be premature to claim the industry consolidation is over.
The calendar year closure count stands at 92 as of the end of November. At least six more products intend to close in December. If two more decide to admit defeat, then the 2012 count could reach 100.
Assets increased +2.1% in November to $1.3 trillion. Only 26 ETFs have assets exceeding $10 billion, but they account for more than half (50.4%) of all ETP assets. The quantity of ETPs above the $1 billion threshold now number 179, six more than a month ago. These 179 represent just 12.4% of the quantity of listed products while grabbing 88.1% of the assets.
Trading activity picked up for the third month in a row with total dollar volume reaching $1.2 trillion. SPDR S&P 500 (NYSEARCA:SPY) was responsible for 35.2% of all ETP dollars traded.
ETPs averaging more than $1 billion per day in dollar volume held steady at six while capturing a 54.0% share. Products averaging more than $100 million per day declined from 68 to 63 while capturing 87.4% of trading activity.
|November 2012 Month End||ETFs||ETNs||Total|
|Currently Listed U.S.||1,235||210||1,445|
|Listed as of 12/31/2011||1,166||203||1,369|
|New Introductions for Month||4||5||9|
|Delistings/Closures for Month||3||0||3|
|Net Change for Month||+1||+5||+6|
|New Introductions 6 Months||45||10||55|
|New Introductions YTD||145||23||168|
|Net Change YTD||+69||+7||+76|
|Assets Under Mgmt ($ billion)||$1,298||$16.6||$1,314|
|% Change in Assets for Month||+2.2%||-3.8%||+2.1%|
|Qty AUM > $10 Billion||26||0||26|
|Qty AUM > $1 Billion||176||3||179|
|Qty AUM > $100 Million||549||22||571|
|Monthly $ Volume ($ billion)||$1,167||$32.3||$1,200|
|% Change in Monthly $ Volume||+7.8%||+20.5%||+8.2%|
|Avg Daily $ Volume > $1 Billion||5||1||6|
|Avg Daily $ Volume > $100 Million||61||2||63|
|Avg Daily $ Volume > $10 Million||216||9||225|