This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

ETF Deathwatch

Stocks in this article: EMMT PFI RXD GWO IWR IJH

Rowland says that some of the most likely candidates for liquidation are actively managed ETFs, which aim to outdo benchmarks. So far active funds have not gained large followings because ETF investors mainly prefer index funds.

Active funds on the Deathwatch include Grail RO Growth ETF (RPX) and PowerShares Active Alpha Multi-Cap (PQZ). All five of the active Grail funds are on the list, and the company has announced that it is putting itself up for sale. "Eventually people will leave active mutual funds and switch to active ETFs, but that will take some time to happen," Rowland says.

The number of names on the Deathwatch is likely to increase because money managers are planning to introduce hundreds of new funds. Big companies that have registered ETFs include Goldman Sachs (GS) , John Hancock and T. Rowe Price (TROW). "Major mutual fund companies are hurrying to bring out new issues because they are afraid that ETFs are stealing market share," says Matt Hougan, global head of editorial of indexuniverse.com.

Many of the new crop of ETFs target narrow niches, such as steel or smartphones. Not many of such narrow funds have succeeded in recent years. A noteworthy liquidation occurred when XShares Group closed all 19 of its specialized healthcare funds. The funds focused on fields such as cardiology. Most investors were not impressed and continued buying funds that track broad benchmarks.

TheStreet Tools
* Ex-Dividend Date Calendar
* Top-Rated Stocks
* Highest-Yielding Stocks
* 2011 Earnings Calendar

Stan Luxenberg is a freelance writer specializing in mutual funds and investing. He was executive editor of Individual Investor magazine.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs