Fade

<script src="//code.jquery.com/jquery-1.11.1.min.js"></script>
<script type='text/javascript'>
(function($){
  $.fn.list_ticker = function(options){

    var defaults = {
      speed:4000,
   effect:'slide',
   run_once:false
    };

    var options = $.extend(defaults, options);

    return this.each(function(){

      var obj = $(this);
      var list = obj.children();
      var count = list.length - 1;

      list.not(':first').hide();

      var interval = setInterval(function(){

        list = obj.children();
        list.not(':first').hide();

        var first_li = list.eq(0)
        var second_li = list.eq(1)

  if(options.effect == 'slide'){
   first_li.slideUp();
   second_li.slideDown(function(){
    first_li.remove().appendTo(obj);

   });
  } else if(options.effect == 'fade'){
   first_li.fadeOut(function(){
    obj.css('height',second_li.height());
    second_li.fadeIn();
    first_li.remove().appendTo(obj);
   });
  }

  count--;

  if(count == 0 && options.run_once){
   clearInterval(interval);
  }

      }, options.speed)
    });
  };
})(jQuery);
 </script>
<script type='text/javascript'>
 $(document).ready(function(){
  $('#fade').list_ticker({
   speed:5000,
   effect:'fade'
  });
})
 </script>