Claymore Securities, known for its narrowly focused exchange-traded funds (ETFs), has just launched the Claymore/Delta Global Shipping Index ETF (SEA). The ETF tracks companies from the global maritime-shipping industry.
Delta Global (the index provider) selects companies that derive more than 80 percent of revenues from the seaborne transport of dry bulk goods and the leasing and/or operating of tanker ships, container ships, specialty chemical ships and ships that transport liquid natural gas or dry bulk goods.
Market cap and volume (or liquidity) filters are applied to the qualifying group. U.S. traded stocks and ADRs are preferred for inclusion in the index. If there are fewer than 30 U.S. listed securities, securities listed on global developed market exchanges will be included.
Current holdings include Seaspan, Euroseas, Knightsbridge, Teekay Tank, Teekay LNG, Alexander & Baldwin and Mitsui OSK Lines. Holdings registered in Greece represent 35 percent of the fund, while U.S.-registered companies account for 20 percent.
This is the first Claymore ETF that carries a dividend-weighted "engine under the hood". A modified dividend-weighting mechanism is applied to constitute the final index, with higher-yielding securities based on their indicated dividend yield being more highly weighted according to a proprietary methodology. No single security weight will exceed 4 percent of the index at the time of each rebalance. The index is reconstituted annually, with rebalancing occurring quarterly.
The expense ratio is set at 0.65 percent. The ETF traded near 20 on September 18.