Claymore Securities, known for its narrowly focused exchange-traded funds, has just launched the Claymore/Delta Global Shipping Index ETF (SEA). The ETF tracks companies from the global maritime shipping industry.
Index provider Delta Global selects companies that derive a significant portion (in excess of 80 percent) of their revenues from the seaborne transport of dry bulk goods and the leasing and/or operating of tanker ships, container ships, specialty chemical ships and vessels that transport liquid natural gas or dry bulk goods.
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.
Ron DeLegge is the San Diego-based editor of www.etfguide.com.