ETF Stats for May 2010 – Listings Decline for First Time in a Year

Nine new ETFs launched in May and no new ETNs.  A dozen ETFs  closed, producing a net decline of three exchange traded products (ETPs) for the month.  This is the first drop in the number of listings since May of 2009 when the count fell by 14, the largest monthly decline ever.

A total of 93 new ETPs launched in the first five months of 2010, which falls far short of the pace set in 2007 when 153 new products had come to market by this point.  Calendar year 2008 had 107 new ETP introductions through May, so 2010 is shaping up to be the third most prolific year for new product launches.

The number of US-listed ETPs now stands at 995 (902 ETFs and 93 ETNs).  The number of listings briefly topped 1,000 for the first time ever during May before dropping back to 994.  In addition to the 93 launches, there have been 23 closures this year, leaving a net increase of just 70.  The 12 May delistings were the result of Rydex closing a dozen leveraged ETFs.

Notional trading of ETPs surged +57% in May to $2.28 trillion, the highest level in more than a year.  With 20 trading days in the month, this produced an average daily value traded (ADVT) of nearly $119 billion.  SPDR S&P 500 (SPY) had its most active month since October 2008 with $832 billion worth of shares changing hands.  The extremely heavy volume, coupled with an 8% decline for the S&P 500, will likely have a negative impact on ETP assets when the fund flow reports for May become available.

The increased volume also pushed membership in the ETF Billion Dollar Club to 19 this month, the highest level since April 2009.  The iPath S&P 500 VIX Short-Term Futures ETN (VXX) joined the ranks, the first time an ETN has ever made this exclusive club.

Meanwhile, the number of products on Deathwatch (ADVT below $100,000 after more than six months on the market) dropped from 99 to 86.

New products launched in May (in chronological order)

1. iShares MSCI Ireland Capped Investable Market Index Fund (EIRL) [Ireland, Indonesia, and USA ETFs Launched by iShares]
2. iShares MSCI Indonesia Investable Market Index Fund (EIDO)
3. iShares MSCI USA Index Fund (EUSA)
4. One Fund ETF (ONEF) [New Sponsor U.S. One Enters the ETF Ring Unprepared]
5. SPDR Nuveen Barclays Capital Build America Bond ETF (BABS) [BABS: Build America Bond ETF From SPDR]
6. ESG Shares North American Sustainability Index ETF (NASI) [New ETF Sponsor Offers Sustainable Shares]
7. IQ Taiwan Small Cap ETF (TWON) [TWON: Taiwan Small-Cap ETF From IndexIQ]
8. SPDR Barclays Capital International Corporate Bond ETF (IBND) [IBND: The First International Corporate Bond ETF]
9. iShares MSCI Poland Investable Market Index Fund (EPOL)  [New iShares Poland ETF (EPOL) Inferior to Market Vectors Poland (PLND)]

Product closures/delistings in May:

1. Rydex 2x S&P MidCap 400 ETF (RMM) [Rydex to Close 12 ETFs in May]
2. Rydex Inverse 2x S&P MidCap 400 ETF (RMS)
3. Rydex 2x Russell 2000 ETF (RRY)
4. Rydex Inverse 2x Russell 2000 ETF (RRZ)
5. Rydex 2x S&P Select Sector Energy ETF (REA)
6. Rydex Inverse 2x Select Sector Energy ETF (REC)
7. Rydex 2x S&P Select Sector Financial ETF (RFL)
8. Rydex Inverse 2x Select Sector Financial ETF (RFN)
9. Rydex 2x S&P Select Sector Health Care ETF (RHM)
10. Rydex Inverse 2x Select Sector Health Care ETF (RHO)
11. Rydex 2x S&P Select Sector Technology ETF (RTG)
12. Rydex Inverse 2x Select Sector Technology ETF (RTW)

Previous monthly statistics reports are available here.

Disclosure covering writer, editor, publisher, and affiliates: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned.  No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.