Ziegler Capital Management is going to liquidate its sole exchange-traded fund in March.

The $3.6 million NYSE Arca Tech 100 ETF (NYSE: NXT) will stop trading on Dec.15, with distributions to shareholders scheduled for Dec. 26. NXT will be the 42nd ETF shut down in 2008.

NXT was launched in March 2007 as an alternative to the popular PowerShares NASDAQ-100 ETF (NasdaqGM: QQQQ). Many consider QQQQ a proxy for the Technology sector, but in reality, it holds a mix of Tech and non-Tech stocks. NXT, in contrast, holds 100 pure Technology stocks and offered a unique pure-play on the Technology sector. Apparently not unique enough, however.

NXT was the only ETF offered by Ziegler Capital. The company will now turn its attention back to its mainline business, where it manages approximately $3.1 billion in fixed-income and equity assets, including $700 million in mutual fund investments, through its fund family, North Track Funds.

Despite all the closings, the total number of ETFs continue to grow. This year, there have been 114 ETF launches, with an average market capitalization of $25 million, according to Morgan Stanley research.