Not all ETFs are created equal, and some ideas are outright dumb. While an ETF might look good on paper, the fund's success is the result of a number of factors. Invent the greatest product of all time? It won't matter much if no one wants to buy it.

The ETF market has expanded dramatically in the last few years, and while some ideas have caught on, others have floundered or even shut their doors. Whether it is lack of investor interest, bad design or plain redundancy, these ETFs do not make the grade.

No. 1. PowerShares NXQ Portfolio ( PNXQ). Think that most ETF names are painfully descriptive? Here's one that will keep you on your toes. PNXQ tracks the Nasdaq Q-50 Index that is designed to track the performance of the 50 securities that are "next in line" to replace the securities currently included in the Nasdaq 100.

This ETF gives investors exposure to stocks on the verge, but this fund is on the verge of flat-lining. The three-month average daily trading volume of this fund is just 1,200 shares.

Investors just don't seem to like next-in-line investments, and because of natural reshuffling, shareholders never know what they're going to get. PNXQ gives investors exposure to whatever happens to be next, which could dramatically change over time.

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