Bringing you live news and features since 2006 

“Natural selection” leads Claymore Securities to close 11 ETFs


Lisle, Illinois-based exchange-traded fund provider Claymore Securities has announced plans to liquidate several ‘lightly-followed’ ETFs representing less than 2 per cent of the firm’s US

Lisle, Illinois-based exchange-traded fund provider Claymore Securities has announced plans to liquidate several ‘lightly-followed’ ETFs representing less than 2 per cent of the firm’s US ETF assets later this month, but at the same time it says a new China small cap ETF will be the first of several launches this year.

‘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,’ says Christian Magoon, senior managing director and head of the ETF group at Claymore Securities. The funds to be closed have between USD1.2m and USD5.1m in assets.

Claymore, which provided supervision, management, servicing or distribution on some USD18.5bn in ETF, unit trust and closed-end fund assets at the end of last year, launched the Claymore/AlphaShares China Small Cap Index ETF on the American Stock Exchange on January 30 and says it plans to launch several further ETFs this year.

February 19 will be the last day of trading in the Claymore/BIR Leaders 50, Claymore/BIR Leaders Mid-Cap Value, Claymore/BIR Leaders Small-Cap Core, Claymore/Robeco Boston Partners Large-Cap Value, Claymore/LGA Green, Claymore/KLD Sudan Free Large-Cap Core, Claymore/Clear Mid-Cap Growth Index, Claymore/Zacks Growth & Income Index, Claymore/IndexIQ Small-Cap Value, Claymore/Robeco Developed World Equity and Claymore/Clear Global Vaccine Index ETFs.

The Amex will halt trading in the funds before the open of trading on February 20, and the funds will be closed to new investment on that date. Shareholders may sell their holdings prior to February 20 through their broker-dealers, otherwise all shareholders in the funds remaining on February 28 will receive the value of their shares as of that date, including any capital gains and dividends.

The Claymore/AlphaShares China Small Cap Index ETF is the first ETF focused on small-cap Chinese companies and Claymore’s second China-focused ETF. ‘Gaining exposure to Chinese small caps can be difficult because most other Chinese investment products are market-cap based,’ Magoon says.

‘In those ETFs, small caps represent only a small percentage of assets at best and in the most widely held Chinese ETF, small caps currently have no representation. But investors now have the opportunity to diversify among existing Chinese investments through exposure to small cap companies.’

The fund’s underlying index is provided by AlphaShares, whose chief investment officer, Princeton University economist Burton G. Malkiel, is the author of From Wall Street to the Great Wall: How Investors Can Profit from China’s Booming Economy (as well as of A Random Walk Down Wall Street).

‘China’s 1.3 billion residents are consuming more, creating more and with the country’s increasing economic clout, they’ve become important global consumers,’ Malkiel says. ‘This is an opportunity for retail investors to access the emerging small cap market in China. Because historically most investment has been in large cap Chinese stocks, we feel the valuations of small cap stocks are attractive and present good potential for long-term growth.’

The Claymore/AlphaShares China Small Cap Index ETF will normally invest at least 90 per cent of its total assets in common stock, American depositary receipts, American depositary shares, global depositary receipts and international depositary receipts that comprise the index, which is rebalanced and reconstituted annually.

The index, maintained by Standard & Poor’s, seeks to measure and monitor the performance of publicly-traded mainland China-based companies whose shares are open to foreign ownership. These include all Hong Kong-listed securities including China H-Shares and Red Chips, and N-Shares trading in New York and their equivalents in other foreign markets, but not China A-Shares or China B-Shares, nor debt or quasi-debt securities such as convertible securities.

A minimum float-adjusted market capitalisation of USD200m and a maximum of USD1.5bn are used to determine initial portfolio construction and eligibility, while a minimum capitalisation of USD150m and maximum of USD1.75bn are required for ongoing inclusion in the index.

Latest News

The August data from LSEG Lipper shows that the global ETF industry held USD10,547.4 billion in assets under management on..
HANetf has announced that their European Green Deal UCITS ETF (ticker: EUGD) has reached USD52 million (EUR49.9 million) in assets..
Legal & General Investment Management (LGIM) has announced the launch of the L&G Global Brands UCITS ETF. The firm writes..
Vienna Stock Exchange has launched three new thematic indices: CECE Reshoring, CECE Commodity Producers and CECE Clean Energy, writing that..

Related Articles

John Ciampaglia, Sprott Asset Management
Geo-political tensions and concerns about hitting clean energy targets have brought the focus back onto nuclear power in recent months,...
Nick King, Robeco
Europeam investment management giant Robeco has announced the appointment of Nick King as Head of Exchange Traded Funds (ETFs), in...
Kristof Gleich, Harbor Capital
Harbor Capital burst onto the ETF issuance world in 2021 and now has USD1.1 billion in assets in ETFs. But...
Europe’s thematic ETF provider, Rize ETF, has been acquired by ARK Invest LLC, the parent of ARK Investment Management LLC,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by