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Complete List Of 79 ETP Closures For 2014

Seventy-nine exchange traded products bit the dust in 2014, marking the second highest annual death toll in the history of the ETF industry. The 72 ETF and 7 ETN closures were second only to the 102 closures of 2012. Broken down by major categories, the closures of 2014 consisted of 22 sector, 15 style and strategy, 14 global and international, 13 bond, 7 inverse, 4 leveraged, and 4 commodity. Of the 2,121 U.S. ETPs launched since the dawn of the industry in 1993, only 1,662 remain listed while 459 have closed. Said another way, the historic probability of ETP survivability is 78.4%. Closures affected 15 brands and sponsors in 2014. Pax World was the only sponsor to exit the ETF space completely, and it did so in a very strange fashion. ETF pundits have long discussed the possibility of a large quantity of mutual funds converting to ETFs. However, no one ever thought conversions might go the other direction, but that is exactly what happened when all $64 million of the assets in the Pax MSCI EAFE ESG Index ETF (NYSEARCA: EAPS ) suddenly became Institutional Class shares of the Pax World International ESG Index Fund (MUTF: PXNIX ), a traditional mutual fund. See ‘ This Wasn’t Supposed To Happen: ETF Converts To Mutual Fund ‘ for additional details. Goldman Sachs is highly regarded on Wall Street, and it is often thought of as a firm that can do no wrong when it comes to making money. However, it hasn’t figured out the ETF space yet. Goldman (NYSE: GS ) attached its name and investment strategies to four ETFs sponsored by ALPS in 2012. Apparently, the Goldman name carries no weight in ETF land , and all four ETFs closed in 2014 with combined assets of less than $11 million. For a number of reasons, the most notable closures of the year belong to iShares. First, 29 iShares ETFs had their last day of listed trading in 2014, giving iShares a 37% market share of closures. No other brands came close to this figure, with Direxion and EGShares tying for second-place “honors” with just six closures each. Second, iShares raised the bar on ETF survivability , as its 18 closings in October averaged more than $18 million in assets and two had about $70 million each. At the time, 49% of all listed ETFs and ETNs had fewer assets. Third, two of the liquidated funds (NY and NYC) had been on the market more than ten years. Longevity does not assure survival. Last, I can recall a BlackRock (NYSE: BLK ) representative questioning why there were iShares funds on ETF Deathwatch when none had ever closed. I reminded him that iShares practically invented ETF closures with three such occurrences in 2002. He rebutted that Barclays owned the iShares brand at that time, and BlackRock had never closed an ETF. Never say never. Some ETPs have maturation dates, namely target-date maturity bond ETFs and all ETNs. At their time of launch, these products inform investors of their likely closure and liquidation dates. For example, the Guggenheim BulletShares series of target maturity bond ETFs retire a couple of funds at the end of each calendar year. The two 2014 BulletShares ETFs (BSCE and BSJE) had their last day of trading on December 30, and next year we can expect the 2015 funds (BSCF and BSJF) to do the same. These are planned from the time of inception and are not indicative of unhealthy or failing products. Every ETN is also issued with a maturity date. Typically, ETNs are launched with 30-year or 20-year maturities. Since the first ETNs didn’t come to market until 2006, most investors thought they wouldn’t have to deal with ETN maturation for another 10 or 20 years. However, in 2009 there were five ETNs issued as 5-year notes scheduled to mature in 2014. Three of these five triggered early terminations, including Barclays ETN+ S&P 500 Short B ETN (NYSEARCA: BXDB ) last April. The two that escaped early termination, BXUC and BXUB, matured in November and were liquidated. Most of 2014’s closures had become Zombie ETFs, and 58 of the 79 (73%) were on ETF Deathwatch at the time of their closure announcements. The major exceptions included the maturing products discussed above and many of the iShares with large amounts of assets. The average age of funds that closed in 2014 was 45.8 months (3.8 years). This is greater than the 31.4-month average lifespan of all 459 closed products, suggesting sponsors are willing to subsidize these non-profitable products longer than in years past. The table below is currently sorted by product name. # Ticker Name Last Day Deathwatch Notes 1 GSAX ALPS/GS Momentum Builder Asia x-Japan Eq/US-T 08/27/2014 Yes 2 GSGO ALPS/GS Momentum Builder Growth Markets Eq/US-T 08/27/2014 Yes 3 GSMA ALPS/GS Momentum Builder Multi-Asset 08/27/2014 Yes 4 GSRA ALPS/GS Risk-Adjusted Return U.S. Large Cap 08/27/2014 Yes 5 BXUB Barclays ETN+ S&P 500 Long B Leveraged ETN 11/20/2014 Yes 2 6 BXUC Barclays ETN+ S&P 500 Long C Leveraged ETN 11/20/2014 – 2 7 BXDB Barclays ETN+ S&P 500 Short B Leveraged ETN 04/10/2014 Yes 3 8 BRZS Direxion Daily Brazil Bear 3x Shares 09/23/2014 Yes 9 EURZ Direxion Daily FTSE Europe Bear 3x Shares 09/23/2014 Yes 4 10 BARS Direxion Daily Gold Bear 3x Shares 12/26/2014 Yes 4 11 JPNS Direxion Daily Japan Bear 3x Shares 09/23/2014 Yes 12 GASX Direxion Daily Natural Gas Related Bear 3x 09/23/2014 – 13 KORZ Direxion Daily South Korea Bear 3x Shares 09/23/2014 Yes 14 CHXX EGShares China Infrastructure 09/29/2014 Yes 15 EMDG EGShares Emerging Markets Dividend Growth 12/24/2014 Yes 16 EMHD EGShares Emerging Markets Dividend High Income 12/24/2014 Yes 17 IEMF EGShares TCW EM Intermediate Term IG Bond 09/29/2014 Yes 4 18 LEMF EGShares TCW EM Long Term IG Bond 09/29/2014 Yes 4 19 SEMF EGShares TCW EM Short Term IG Bond 09/29/2014 Yes 4 20 OFF ETRACS Fisher-Gartman Risk Off ETN 05/18/2014 Yes 21 ONN ETRACS Fisher-Gartman Risk On ETN 05/18/2014 Yes 22 GASZ ETRACS Natural Gas Futures Contango ETN 01/22/2014 – 23 OILZ ETRACS Oil Futures Contango ETN 01/22/2014 Yes 24 CNPF Global X Canada Preferred 10/16/2014 Yes 25 GGGG Global X Pure Gold Miners 10/16/2014 Yes 26 BSCE Guggenheim BulletShares 2014 Corp Bond 12/30/2014 – 2 27 BSJE Guggenheim BulletShares 2014 HY Corp Bond 12/30/2014 – 2 28 GIY Guggenheim Enhanced Core Bond 03/07/2014 Yes 1 29 MUAC iShares 2014 AMT-Free Muni Term 08/15/2014 – 2 30 NUCL iShares Global Nuclear Energy 10/14/2014 Yes 31 FNIO iShares Industrial/Office Real Estate Capped 10/14/2014 Yes 32 AXDI iShares MSCI ACWI ex US Consumer Discretionary 03/25/2014 Yes 33 AXSL iShares MSCI ACWI ex US Consumer Staples 03/25/2014 Yes 34 AXEN iShares MSCI ACWI ex US Energy 03/25/2014 Yes 35 AXFN iShares MSCI ACWI ex US Financials 03/25/2014 Yes 36 AXHE iShares MSCI ACWI ex US Healthcare 03/25/2014 Yes 37 AXID iShares MSCI ACWI ex US Industrials 03/25/2014 Yes 38 AXIT iShares MSCI ACWI ex US Information Technology 03/25/2014 Yes 39 AXMT iShares MSCI ACWI ex US Materials 03/25/2014 Yes 40 AXTE iShares MSCI ACWI ex US Telecom Services 03/25/2014 Yes 41 AXUT iShares MSCI ACWI ex US Utilities 03/25/2014 Yes 42 EMFN iShares MSCI Emerging Markets Financials 10/14/2014 Yes 43 EMMT iShares MSCI Emerging Markets Materials 10/14/2014 Yes 44 FEFN iShares MSCI Far East Financials 10/14/2014 Yes 45 NY iShares NYSE 100 ETF 10/14/2014 – 46 NYC iShares NYSE Composite ETF 10/14/2014 – 47 RTL iShares Retail Real Estate Capped 10/14/2014 Yes 48 TZD iShares Target Date 2010 10/14/2014 – 49 TZE iShares Target Date 2015 10/14/2014 – 50 TZG iShares Target Date 2020 10/14/2014 – 51 TZI iShares Target Date 2025 10/14/2014 – 52 TZL iShares Target Date 2030 10/14/2014 – 53 TZO iShares Target Date 2035 10/14/2014 – 54 TZV iShares Target Date 2040 10/14/2014 – 55 TZW iShares Target Date 2045 10/14/2014 Yes 56 TZY iShares Target Date 2050 10/14/2014 – 57 TGR iShares Target Date Retirement Income 10/14/2014 – 58 RKH Market Vectors Bank and Brokerage 12/12/2014 Yes 59 COLX Market Vectors Colombia 12/12/2014 Yes 60 GERJ Market Vectors Germany Small-Cap 12/12/2014 Yes 61 LATM Market Vectors Latin America Small-Cap 12/12/2014 Yes 62 CHLC Market Vectors Renminbi Bond 12/12/2014 Yes 63 EAPS Pax MSCI EAFE ESG Index ETF 03/21/2014 – 5 64 AUD PIMCO Australia Bond Index 09/26/2014 – 65 TRSY PIMCO Broad U.S. Treasury Index 03/10/2014 Yes 66 BABZ PIMCO Build America Bond 09/26/2014 – 1 67 CAD PIMCO Canada Bond Index 09/26/2014 – 68 BUND PIMCO Germany Bond Index 09/26/2014 Yes 69 PIQ PowerShares Dynamic Magniquant 02/18/2014 Yes 70 KBWX PowerShares KBW International Financial 02/18/2014 Yes 71 PXN PowerShares Lux Nanotech 02/18/2014 Yes 72 PMNA PowerShares MENA Frontier Countries 02/18/2014 Yes 73 GEMS PureFunds ISE Diamonds/Gemstone 01/23/2014 Yes 74 MSXX PureFunds ISE Mining Service 01/23/2014 Yes 75 NAGS Teucrium Natural Gas 12/18/2014 Yes 76 CRUD Teucrium WTI Crude Oil 12/18/2014 Yes 77 ASDR VelocityShares Emerging Asia DR ETF 11/20/2014 Yes 78 EMDR VelocityShares Emerging Markets DR ETF 11/20/2014 Yes 79 RUDR VelocityShares Russia DR ETF 11/20/2014 Yes Notes: 1) actively managed, 2) reached planned maturity, 3) hit early termination trigger, 4) launched in 2014 and less than 1 year old at time of closure, 5) converted to mutual fund. All exchange traded notes are identified with “ETN” as part of their name description. 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.

Top-Rated Long-Term Government Bond Mutual Funds To Outperform

Conservative investors prefer debt instruments not only because they safeguard the capital invested but also for the regular income flows they provide. Bonds bring a great deal of stability to an equity-heavy portfolio while providing dividends more frequently than individual bonds. U.S government bonds mutual funds usually invest in Treasury bills, notes and securities issued by government agencies. They are considered to be the safest in the bond fund category and are ideal options for the risk-averse investor. Below we will share with you 3 top rated long-term government bond mutual funds . Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all long-term government bond funds, investors can click here to see the complete list of funds . Rydex Government Long Bond 1.2x Strategy Investor (MUTF: RYGBX ) invests largely in U.S. government backed fixed income instruments as well as derivative instruments such as future contracts, swaps and options. It seeks 1.2 times the return of daily price movement of the Long Treasury Bond for U.S. government instruments. This non-diversified government bond mutual fund returned 29.9% over the last one year period. The fund has an expense ratio of 0.97% as compared to category average of 1.50%. Vanguard Long-Term Treasury (MUTF: VUSTX ) seeks a high level of current income which is sustainable. The fund invests a large share of its assets in U.S. Treasury securities such as bills and bonds. It aims to have an average weighted maturity period between 15 to 30 years. This government bond mutual fund returned 20.7% over the last one year period. David R. Glocke is the fund manager and has managed this fund since 2001. Dreyfus US Treasury Long-Term (MUTF: DRGBX ) invests a majority of its assets in U.S. Treasury instruments. It may also invest in other instruments which are approved by the domestic government or issued by its entities. It generally has a duration of more than or equal to 7.5 years and minimum of 10 years of weighted duration of maturity. The fund seeks total return with capital growth and current income. This government bond mutual fund returned 19.8% over the last one year period. As of October 2014, this fund held 20 issues with 12.77% of its assets invested in US Treasury Bond 4.625%. Now that you’ve read this, are you Bullish or Bearish on ? Bullish Bearish Sentiment on ( ) Thanks for sharing your thoughts. Why are you ? Submit & View Results Skip to results » Share this article with a colleague

The ABCs Of Mutual Fund Share Classes

Originally published on Nov. 19, 2014 You don’t need to read a prospectus to benefit from knowing the basics about mutual fund share classes. It will help you uncover your actual investing costs (especially when dealing with a broker), avoid unnecessary fees, and boost long-term performance. As you will see, even after you select a fund, it is crucial that you choose the most appropriate share class of that fund. Bringing Funds to the Marketplace Just like a farmer needs to get their crops to market, mutual fund companies work through multiple distribution channels to sell their products. These could include direct sales via online brokerages, sales to pension plans, through a broker, a registered investment advisor, and so forth. Each of these channels has different end clients and associated costs; and because of this, companies have developed different versions (share classes) of the same mutual fund to suit each situation. Typical Mutual Fund Fees Annual Expense Ratio – The ongoing fee to manage and administer the fund. Most investors will never notice this cost since it’s a tiny fraction taken from the share price (NAV) each day. Trading fee – A fee charged by the executing brokerage company/custodian, typically $0 to $50 per buy or sell order. Front-end Load – A sales charge applied when a fund is bought; it typically declines for larger purchase amounts. Back-end Load – A sales charge applied when a fund is sold; it typically declines over several years. Fund Share Classes with an Example “A” shares have a front-end load. “B” shares have a back-end load, but have a lower expense ratio if held long enough. “C” shares have no load after a short time, but have a higher expense ratio. Other shares such as “D” or “Institutional” exist. These shares typically have no load, but may have limited availability. The well-known Pimco Total Return Fund (MUTF: PTRAX ) provides a great illustration of how one mutual fund offers many different share classes of the same fund. Broker Assisted Investors After considering the overall costs from the table above, you will see where the costs are built into the mutual fund structure and sales channels. Brokers are typically compensated by the A, B, or C share classes, but also can get residual compensation via fees built into the mutual fund expense ratio (e.g. 12b-1 fees). Remember, brokers do not have a legal obligation to put you in the “right” share class. So if you are using a broker, be sure to give them more information on how you plan to invest or you could end up paying them larger fees than you should. With a broker for example, if you knew you were going to buy $10,000 of the Pimco Total Return fund, but sell it within 3 years, you will probably be better off with the “C” shares. However, if you have no idea how long you will hold the fund, the “B” shares may be a better bet – since the costs to own will decrease over time. If you had a substantial amount to invest for a long time, the “A” shares may ultimately be the cheapest option even though you are paying the 3.75% front-end load. Advisor Clients Registered Investment Advisors like us typically have “Institutional” share classes available to them. At our firm, we pay close attention to fund expenses and transactions costs for our clients. Because of this, we will frequently use more than one share class of the same fund, or two slightly different funds in the same asset class – all in order to minimize the long-term costs for our clients. It is certainly more complex to juggle the various share classes in a portfolio, but we believe you can use them to your distinct advantage.