One week after announcing 11 ETF closures, Claymore Securities introduced three new funds. The new products are designed to follow broad markets representing the value of the U.S. capital markets as a whole.
The Claymore U.S.-1 — The Capital Markets Index ETF (UEM) includes coverage of equity, fixed income and money market securities. The underlying index aims to be a long-term measure of these three segments of the U.S. investment-grade capital markets. The fund is unusual in the ETF universe in offering exposure across multiple asset classes.
The Claymore U.S. Capital Markets Bond ETF (UBD) is designed to be a long-term measure of the performance of the U.S. investment-grade bond markets. The Claymore U.S. Micro-Term Fixed Income ETF (ULQ) has the goal of measuring the investment-grade securities in the U.S. money markets and in the micro-term fixed-income capital markets.
ULQ is not a money market fund and doesn’t attempt to keep a stable net asset value of $1.00 per share. Claymore’s ETFs will follow the CPMKTS Capital Markets Index and were developed by Dorchester Capital Management.
“Claymore is pleased to be the first to offer investors core ETFs that provide exposure to the broad U.S. investment-grade capital markets. UEM offers access to all three segments of the capital markets in one investment vehicle,” said Christian Magoon, senior managing director and head of the ETF Group for Claymore Securities.
“Investment products based on the Capital Markets Indexes provide transparent low-cost options with … broad diversification,” stated Warren Schmalenberger, founder and CEO of Dorchester Capital Management. He added, “The CPMKTS Index is the first to represent the entire investment grade capital markets — including stocks, bonds and income securities with maturities of less than one year.”
In February, Claymore, based in Lisle, Ill., announced it would liquidate 11 lightly followed ETFs representing less than 2 percent of the firm’s U.S. ETF assets. “There is a natural selection process when it comes to investment options and we will continue to offer products where there’s the potential for marketplace appeal,” said Magoon.
The liquidations affected the following ETFs:o Claymore/BIR Leaders 50 ETF (BST)o Claymore/BIR Leaders Mid-Cap Value ETF (BMV)o Claymore/BIR Leaders Small-Cap Core ETF (BES)o Claymore/Robeco Boston Partners Large-Cap Value ETF (CLV)o Claymore/LGA Green ETF (GRN)o Claymore/KLD Sudan Free Large-Cap Core ETF (KSF)o Claymore/Clear Mid-Cap Growth Index ETF (MCG)o Claymore/Zacks Growth & Income Index ETF (CZG)o Claymore/IndexIQ Small-Cap Value ETF (SCV)o Claymore/Robeco Developed World Equity ETF (EEW)o Claymore/Clear Global Vaccine Index ETF (JNR)
Ron DeLegge is the San Diego-based editor of www.etfguide.com.