ETF News Archive

Claymore Acquired by Guggenheim Partners

Claymore Group, a leading sponsor of exchange traded funds, has agreed to be acquired by Guggenheim Partners.

Guggenheim is a diversified financial services firm with more than $100 billion in assets under supervision. The firm’s businesses include investment management, investment advisory, investment banking and capital markets services.

Claymore Group is a $13 billion sponsor of exchange-traded funds (ETFs), unit investment trusts (UITs) and closed-end funds (CEFs).

The deal is expected to close in Q3.

See the ETF Directory for a complete list of Claymore exchange traded funds.

Claymore ETF Changes Name and Focus

Claymore Securities has changed the name and focus of the Claymore/Great Companies Large-Cap Growth Index ETF (XGC).

The ETF is now the Claymore/BNY Mellon International Small Cap LDRs ETF (XGC).  The fund will now track The Bank of New York Mellon Small Cap Select ADR Index.

The annual expense ratio of the funds was lowered from 0.65% to 0.45%.

As of June 30, 2009, the Index consisted of 100 securities with a market capitalizations ranging between $282 million and $3.1 billion. The five largest country weights as of the same date were Brazil 23.55%, China 22.93%, United Kingdom 6.00%, Chile 5.82% and Australia 5.73%.

See the Claymore ETF Directory for a complete list of Claymore exchange traded funds.

European Manager Enters US Market with Silver ETF

One of the world's leading providers of Exchange Traded Products entered the US ETF market on Friday with the launch of the ETFS Silver Trust (SIVR).

Introduced by ETF Securities Ltd (ETFS), the ETFS Silver Trust reflects the performance of the price of silver bullion, less the Trust’s operating expenses. The open-ended Trust is designed for investors who want a cost-effective and convenient way to invest in Silver as well as diversify their silver holdings.
ETFS Silver Trust is backed by physical silver bullion held by HSBC in London, one of the world's leading Custodians for precious metals. The Shares represent an interest in physical silver bullion owned by the Trust.

AirShares EU Carbon Allowances Fund to Liquidate

The AirShares EU Carbon Allowances Fund (ASO) will halt trading and liquidate effective July 31, 2009.

XShares Advisors determined that, as a result of the Fund’s small size, inability to attract significant market interest since its inception and future viability, as well as the prospects for growth in the Fund’s assets in the foreseeable future, it was advisable and in the best interests of the Fund and its shareholders to liquidate the Fund.

Emerging Markets Sector Composite ETF Launches

Emerging Global Advisors expanded its line-up of emerging markets sector Exchange-Traded Funds with the introduction of the Emerging Global Shares Dow Jones Emerging Markets Titans Composite Index Fund (EEG).

The new fund tracks the Dow Jones Emerging Markets Titans Composite 100 Index which includes the 10 top-ranked stocks from each of the 10 Dow Jones Emerging Markets Sector Titan Indexes – Basic Materials, Consumer Goods, Consumer Services, Financials, Healthcare, Industrials, Oil & Gas (energy), Technology, Utilities, and Telecommunications.

The top five countries represented in the Dow Jones index are China Offshore (20.94 percent); Brazil (20.02 percent); India (17.89 percent); Russia (15.95 percent); and <

FINRA Clarifies Position on Leveraged and Inverse ETFs

After issuing an overly broad regulatory statement on the suitability of inverse and leveraged ETFs, the Financial Industry Regulatory Authority (FINRA) has clarified its position.

In June, FINRA issued a notice that said "...inverse and leveraged ETFs are typically not suitable for retail investors who plan to hold them for more than one trading session..."

After industry push back on the sweeping nature of the statement, FINRA posted a podcast on July 13 in which it confirmed that FINRA member firms could reasonably recommend that a retail investor hold these ETFs for longer than one day, provided a suitability assessment is conducted with respect to such an investor and the ETF.

The podcast specifically addresses the use of inverse and leveraged ETFs as part of sophistic

3x Real Estate ETFs Start Trading

ETFs that return 300% of the daily performance of the Real Estate Investment Trust (REIT) market have started trading.

The Direxion Daily Real Estate Bull 3x Shares (DRN) and Direxion Daily Real Estate Bear 3x Shares (DRV) seek 300% of the daily performance and 300% of the inverse of the daily performance of the MSCI U.S. REIT Index respectively.  The MSCI index represents 85% of the U.S. REIT universe.

See the Direxion ETF Directory or Investing in REITS with Exchange Traded Funds for more information.

ETF Assets Grow $6 billion in June

ETF assets grew $5.7 billion or 1% in June according to State Street Global Advisors. ETF assets now total $593 billion across 740 ETFs.

Fixed income ETFs saw the biggest growth in June, increasing $3.8 billion or 5%.  Inverse and leveraged ETFs also realized 5% growth, increasing assets by $1.7 billion.

ProShares Adds 130/30 ETF

ProShares has launched the first 130/30 ETF.  The ProShares Credit Suisse 130/30 (CSM) tracks an index designed to replicate an investment strategy that establishes either long or short positions in certain of the 500 largest U.S. market cap equities.

Short positions will approximate 30% of index portfolio value. Short sale proceeds are used to purchase 30% more in long positions using leverage

The index was designed by Dr. Andrew Lo, in collaboration with Mr. Pankaj Patel, CFA. Dr. Lo is Chairman and Chief Scientific Officer of AlphaSimplex Group and Harris & Harris Group Professor at the MIT Sloan School of Management. Mr. Patel is Director of Quantitative Research at Credit Suisse.

Dr. Lo and Mr.

ALPS Launches Equal Sector Weight ETF

ALPS launched the first Equal Sector ETF (EQL).  The new fund is an ETF of ETFs that tracks the Banc of America Securities – Merrill Lynch Equal Sector Weight Index by owning each of the nine Select Sector SPDR ETFs in equal weights.

The nine Select Sector SPDR ETFs will be rebalanced back to equal weight on a quarterly basis.

The logic of the equal sector weighting strategy is that it minimizes the negative impact of any one sector by diversifying over multiple sectors.

At the same time by offering meaningful exposure to each sector of the market, it allows investors the ability to participate in market rallies regardless of where they occur.