The company, based in Chicago, had $33 million in assets at the end of last year. The board of trustees decided to close all 17 of the NETS funds, citing current market conditions, the inability of the funds to attract significant market interest and their future viability.

Their final day of trading will be Feb. 9, and any investor holding shares after that date will receive a cash distribution equal to the net asset value (NAV) of their shares as determined on Feb. 20.

If funds aren’t grabbing market share, closing them is the responsible thing to do.

The ETF provider was the first to launch a line of funds that tracked the major foreign market indexes. Some of their funds included:

Rising Home Demand. The combination of Australian benchmark interest rate of 4.25%, a six-year low, and increased government grants to first-time home buyers is likely to increase demand for housing this year, reports Jacob Greber for Bloomberg.

Expansionary Policy. The monetary policy is slated as “expansionary” in a response to low business and consumer confidence. On Feb. 3, it is antcipated that Reserve Bank of Australia will cut overnight cash rate targets by 0.75%.

But it is noted that a rising unemployment rate, currently 4.5%, coupled with slow economic growth may keep demand for home loans down.

Mining Cuts. The world’s third-largest mining company, Rio Tinto (RTP), is expected to cut 14,000 jobs, reduce capital spending and sell “significant assets” in response to diminished global metal demands, writes Jacob Greber in another article for Bloomberg.

Tourism Decline. The Australian tourism sector is also struggling as the government ignores the pleas for aid and places the sector at the “back of the line,” reports Nicola Berkovic for The Australian.

Foreign visitors to Australia fell 5.1% in November compared to the previous year with a tourist deficit of 35,000. The industry is entreating the government for tax incentives to boost domestic travel, and US$60 million in funding to develop tourism in emering overseas markets.

• iShares MSCI Australia Index (EWA): down 21.8% in the last 3 months; holdings of 4.4% in Rio Tinto

• NETS S&P/ASX 200 Index (AUS): down 14.8% in the last 3 months; holdings of 3.6% in Rio Tinto

Reserve Bank Governor Glenn Stevens noted that while our own banks are struggling, Australia’s banks continue to weather the storm, reports Paul Kelly for the Australian.

However, the country is facing a challenge ahead in the next few months, with local banks less likely to pass on any cuts to official interest rates, says the Canberra Times. If volatility continues in the United States, it’s likely the pressure will mount on the Reserve Bank of Australia to cut its rate when it meets next Tuesday.

The Achilles’ Heel of the Australian economy is the current account deficit. Australia has the world’s fourth largest current account in dollar terms after the United States, Spain and Britain. Moreover, Rudd must reduce expectations for handouts within Aussie society for both banks and business.

ETFs that will not go “down under”:

• iShares MSCI Australia Index (EWA), down 28.8% year-to-date
• NETS S&P/ASX200 Index (AUS), down 26.2% since April 10 inception

After the Dow Jones lost more than 340 points, Europe’s FTSE-100, Germany’s DAX and France’s CAC all fell by mid-afternoon. In Moscow, reports Louise Watt for the Associated Press, the RTS benchmark was down more than 6% to lows not seen in more than two years.

Asia wasn’t immune, either. In Japan, the Nikkei 225 sank 2.8%, while the Hong Kong Hang Seng index fell more than 2% to its lowest point in more than a year. India, Australia and Singpapore also fell sharply.

Among the funds that track these major benchmarks are:

• NETS S&P/ASX 200 (AUS), down 20.4% since April 10 inception
• NETS Hang Seng China Enterprises Index Fund (SNO), down 21% since May 22 inception
• NETS CAC40 Index Fund (FRC), down 14.9% since April 16 inception
• NETS FTSE Singapore Straits Times Index Fund (SGT), down 8.9% since July 22 inception

Obviously, market turbulence is not just confined to U.S. borders, and international markets and ETFs are showing major signs of distress. The global benchmarks are enough to make any investor wince, with negatives across the board: iShares S&P Europe 350 Fund (IEV) is down 27.5%, while the FTSE China 25 Index Fund (FXI) has plummeted 43%.

These numbers make Gary Gordon at ETF Expert ponder if the bigger bear right now is financials or international. The U.S. credit crisis has penetrated much of the globe now. Remember that the dollar has been in recovery, and that a turnaround takes much longer than a crisis. Sit tight and stay tuned, and remember to be opportunistic on an international level. Here are some other numbers:

• Dow Jones Industrials: 21% off its high of Oct. 9, 2007
• S&P 500: 21% off its high of Oct. 9, 2007
• NASDAQ: 20.7% off its high of Oct. 31, 2007

Global ETFs:

• iShares MSCI South Korea Index (EWY), 46.9% off its Oct. 31, 2007, high
• Vanguard FTSE All-World ex US ETF (VEU), 25.5% off its Oct. 31, 2007, high

Financials:

• Financial Select Sector SPDR (XLF), 44.8% off its June 1, 2007, high
• iShares Dow Jones US Financial Services (IYG), 46.3% off its Feb. 20, 2007, high
• KBW Insurance Fund (KIE), 30.8% off May 16, 2007, high

Overall, it’s a tough call. Investors should protect themselves by staying out until the trend shows up again and these funds cross above their 200-day moving averages before getting back in.

The world’s largest mining company said that its net profit for the year ending June 30 rose 14.7% to $15.39 billion, reports the Associated Press. It was what analysts had been expecting, and was helped along by both increased production and higher prices for oil, copper, iron ore, coal and manganese.

BHP Billiton is in the midst of a hostile takeover bid of Rio Tinto, since they believe that a global slowdown shouldn’t affect demand for these commodities, reports Stacey Vanek-Smith for Marketplace.

There are questions about BHP’s $130 billion all-share bid, though. Some analysts think both companies are doing well enough on their own and don’t need to merge. Others feel that Rio could hold out for an even better offer. If the merger were to go through, the two companies would control one-third of the iron ore market.

• Market Vectors Steel (SLX): down 9.1% year-to-date; Rio Tinto is 12.5%
• iShares MSCI Australia (EWA): down 20% year-to-date; BHP is 16.8%; Rio Tinto is 4.4%
• NETS S&P/ASX 200 Index Fund (AUS): down 15.9% since April 10 inception; BHP is 14%; Rio Tinto is 3.6%

Australians have been tapped out by rising fuel costs and increasing mortgage rates, says Carl Delfeld for ETFXray. Consistent growth still reigns, but there have been some signs of slowing.

Evidence of a hesitant consumer and a sluggish economy is chipping away at the Australian dollar, which has fallen to a three-month low, taking the New Zealand dollar with it. The Reserve Bank of Australia left borrowing costs at 7.25%, reports Ron Harui for Bloomberg. On the news, the New Zealand dollar dropped to its lowest since Sept. 19, while the Aussie fell to its lowest since April 14.

Australia’s central bank showed signs of cutting borrowing costs, a first in almost 7 years. The slower economic growth has helped to stave off inflation. This has been a trend of banks around the world, as bakers try to cushion their economies from slower growth, reports Jacob Greber for Bloomberg.

ETFs that can relate down under:

• iShares MSCI Australia Index (EWA), down 16.1% year-to-date
• CurrencyShares Australian Dollar Trust (FXA), up 7.8% year-to-date
• Australia NETS Trust (AUS), down 11.1% since April 10 inception
• WisdomTree Dreyfus New Zealand Dollar (BNZ), launched on July 8
• Elements Australian Dollar (ADE), up 1.2% since April 4 inception

Read the disclosure, as Tom Lydon is a board member of Rydex Funds.

National Australia Bank Ltd., the country’s biggest bank by assets, said that most investors in its $812 million bond sale pulled out after the company raised provisions for mortgage-related losses, reports Laura Cochrane and Stuart Kelly for Bloomberg.

Around 70% of investors lost interest in the bank’s offering, one of the largest by any Aussie bank in a month. National Australia’s shares plunged by the most since they have in October 1987.

NETS S&P ASX 200 (AUS) lost 3.2% yesterday, andholds 4.6% of assets in National Australia Bank. iShares MCSI Australia (EWA) lost 3.7% yesterday, and holds 5.5% in National Australia.

The better news is Australia is in a good position to resist an economic downturn, said the country’s treasurer. While other countries have slowed, the finely tuned banking sector down under will keep them ahead. The nation is rumored to have a substantial surplus to act as a buffer during trying economic conditions, reports Angela Macdonald-Smith for Bloomberg. Commodity exports are golden right now and Australia continues to receive high prices for its exports, as well.

AUS launched on April 10, and is down 8.5% since then. EWA is down 14.6% year-to-date.