Claymore ETFs Receive 5- and 4-Star Morningstar Ratings upon Reaching Three-Year Milestones in 2009

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January 14, 2010 11:39am ETF BASIC NEWS

claymore-etfsClaymore Securities, Inc., a leading provider of innovative ETFs with over $3 billion in ETF assets, is pleased upon reaching their three-year milestones in 2009, four of Claymore’s ETFs


 received either 4- or 5-stars from Morningstar.

“We believe in the fresh approaches of our ETF’s underlying indices and their ability to analyze the market. Utilizing unique metrics and methodologies provides investors the potential to outpace broad-based indices.”

 
MORNINGSTAR OVERALL RATING as of 12/31/09

Claymore/BNY Mellon BRIC ETF
(NYSE Arca: EEB)

 

5-Star
Out of 440 Diversified Emerging Market funds

     

Claymore/Ocean Tomo Patent ETF
(NYSE Arca: OTP)

 

5-Star
Out of 2,260 Large Blend funds

     

Claymore/Sabrient Insider ETF
(NYSE Arca: NFO)

 

4-Star
Out of 520 Mid-Cap Blend funds

     

Claymore/Sabrient Defensive Equity Index ETF
(NYSE Arca: DEF)

 

4-Star
Out of 1375 Large Value funds

“When Claymore entered the ETF market in 2006, we sought to partner with innovative index providers” said William Belden, Managing Director of Claymore’s ETF division. “We believe in the fresh approaches of our ETF’s underlying indices and their ability to analyze the market. Utilizing unique metrics and methodologies provides investors the potential to outpace broad-based indices.”

Claymore/BNY Mellon BRIC ETF (NYSE Arca: EEB)

EEB seeks to replicate, before the Fund’s fees and expenses, the performance of the BNY Mellon BRIC Select ADR Index, an index comprised of American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) selected, based on liquidity, from a universe of all listed depositary receipts of companies from Brazil, Russia, India and China currently trading on U.S. exchanges. Brazil, Russia, India and China are sometimes considered to be the most dynamic of the Emerging Market countries world-wide and are commonly referred to as the BRIC countries.

                               
Average Annual Total Return         1-Year         3-Year         Since Inception

of 12/31/09

                           

(9/21/06)

Market Price         86.46%         12.19%         20.47%
After Tax on Shares Held         85.68%         11.41%         19.70%
After Tax on Shares Sold         56.20%         9.90%         17.26%
NAV         84.89%         12.43%         20.34%
After Tax on Shares Held         84.12%         11.66%         19.57%
After Tax on Shares Sold         55.18%         10.12%         17.15%
MSCI Emerging Markets Index         78.29%         4.96%         10.00%

Expense Cap/Gross Expense

       

0.60%3/0.69%4

Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. The investment return and principal value of an investment will fluctuate with changes in market conditions and other factors so that an investor’s shares, when sold, may be worth more or less than their original cost.

Claymore/Ocean Tomo Patent ETF (NYSE Arca: OTP)

OTP seeks to replicate, before the Fund’s fees and expenses, the performance of the Ocean Tomo 300® Patent Index. The Index, which is the first publicly available patent index, is designed to actively represent a group of domestically-traded securities that own quality patent portfolios. Historically many analysts tracked a company’s hard assets—goods produced, property, land, etc.—to estimate its potential value. However, as companies develop, their value may be more closely tied to their intellectual or patent values than their hard assets. OTP invests in companies that may offer the most significant opportunities based upon their patents.

                               
Average Annual Total Return         1-Year         3-Year         Since Inception

of 12/31/09

                           

(12/15/06)

Market Price         29.71%         -1.39%         -1.33%
After Tax on Shares Held         29.38%         -1.99%         -1.93%
After Tax on Shares Sold         19.32%         -1.53%         -1.47%
NAV         29.07%         -1.49%         -1.53%
After Tax on Shares Held         28.74%         -2.09%         -2.12%
After Tax on Shares Sold         18.90%         -1.61%         -1.64%
S&P 500 Index         26.47%         -5.61%         -5.71%

Expense Cap/Gross Expense

       

0.60%3/2.38%4

Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. The investment return and principal value of an investment will fluctuate with changes in market conditions and other factors so that an investor’s shares, when sold, may be worth more or less than their original cost.

Claymore/Sabrient Insider ETF (NYSE Arca: NFO)

NFO seeks to replicate, before the Fund’s fees and expenses, the performance of the Sabrient Insider Sentiment Index. The Index’s objective is to actively represent a group of securities currently reflecting favorable corporate insider buying trends―determined via the public filings of such corporate insiders―and Wall Street analyst earnings estimate increases. By investing in the constituents that comprise the Index—tracking insiders and analysts, who are considered to be the closest to the company—NFO has been able to outperform its broad market index over short- and long-term periods. Past performance does not guarantee future results.

                               
Average Annual Total Return         1-Year         3-Year         Since Inception

of 12/31/09

                           

(9/21/06)

Market Price         50.23%         0.58%         2.92%
After Tax on Shares Held         49.68%         -0.03%         2.35%
After Tax on Shares Sold         32.65%         0.11%         2.09%
NAV         47.74%         0.26%         2.61%
After Tax on Shares Held         47.20%         -0.34%         2.03%
After Tax on Shares Sold         31.03%         -0.15%         1.83%
S&P 500 Index         26.47%         -5.61%         -2.86%

Expense Cap/Gross Expense

       

0.60%3/1.14%4

Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. The investment return and principal value of an investment will fluctuate with changes in market conditions and other factors so that an investor’s shares, when sold, may be worth more or less than their original cost.

Claymore/Sabrient Defensive Equity Index ETF (NYSE Arca: DEF)

DEF seeks to replicate, before the Fund’s fees and expenses, the performance of the Sabrient Defensive Equity Index. The Index is designed to actively represent a group of securities reflecting low relative valuations, conservative accounting, dividend payments and a history of out-performance during bearish market periods. By investing in companies that may be viewed as having low relative valuations, the potential exists for limiting downside performance relative to broad markets during periods of market weakness, while participating in market recovery opportunities. The merits of a defensive strategy are more prevalent when viewed over a full market cycle.

                               
Average Annual Total Return         1-Year         3-Year         Since Inception

of 12/31/09

                           

(12/15/06)

Market Price         22.96%         -3.55%         -3.47%
After Tax on Shares Held         21.84%         -4.34%         -4.25%
After Tax on Shares Sold         14.93%         -3.45%         -3.38%
NAV         22.29%         -3.73%         -3.66%
After Tax on Shares Held         21.16%         -4.52%         -4.44%
After Tax on Shares Sold         14.49%         -3.60%         -3.54%
S&P 500 Index         26.47%         -5.61%         -5.71%

Expense Cap/Gross Expense

       

0.60%3/1.35%4

Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. The investment return and principal value of an investment will fluctuate with changes in market conditions and other factors so that an investor’s shares, when sold, may be worth more or less than their original cost.

For more information on Claymore ETFs visit www.claymore.com.

About Claymore Securities

Claymore Securities, Inc. is a privately-held financial services company offering unique investment solutions for financial advisors and their valued clients. Claymore entities have provided supervision, management, or servicing on approximately $15.2 billion in assets, as of December 31, 2009. Claymore currently offers closed-end funds, unit investment trusts and exchange-traded funds. Claymore Advisors, LLC, an affiliate of Claymore Securities, Inc., serves as the investment adviser.

1 ETF assets as of 1/6/10.2 The Morningstar Rating™ is provided for those exchange-traded funds (“ETFs”) with at least a three-year history. Ratings are based on the ETF’s Morningstar Risk-Adjusted Return measure which accounts for variation in monthly performance, placing more emphasis on downward variations and rewarding consistent performance. An ETF’ risk-adjusted return includes a brokerage commission estimate. This estimate is intended to reflect what an average investor would pay when buying or selling an ETF. PLEASE NOTE, this estimate is subject to change and the actual brokerage commission an investor pays may be higher or lower than this estimate. Morningstar compares each ETF’s risk-adjusted return to the open-end mutual fund rating breakpoints for that category. Consistent with the open-end mutual fund ratings, the top 10% of ETFs in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The overall rating for an ETF is based on a weighted average of the time-period ratings (e.g., the ETF’s 3, 5, and 10 year rating). The determination of an ETF’s rating does not affect the retail open end mutual fund data published by Morningstar. Past performance is no guarantee of future results. ©2010 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. 3 There is a contractual fee waiver currently in place for this Fund to the extent necessary in keeping the Fund operating expense ratio from exceeding the figure shown of average net assets per year. (See the Fund’s prospectus for end date of fee waiver.) Some expenses fall outside of this expense cap and actual expenses may be higher than the figure shown. Without this expense cap, actual returns would be lower. 4 The expense ratio reflects the Fund’s actual total annual operating expense ratio, gross of any fee waivers or expense reimbursements as of its most recent prospectus.

Risk Considerations

Investors should consider the following risk factors and special considerations associated with investing in the Funds, which may cause you to lose money, including the entire principal amount that you invest. Equity Risk: The risk that the value of the securities held by a fund will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by a fund participate, or factors relating to specific companies in which a fund invests. Foreign Investment Risk: Investing in non-U.S. issuers may involve unique risks such as currency, political, and economic risk, as well as less market liquidity, generally greater market volatility and less complete financial information than for U.S. issuers. Investment in securities of issuers based in developing or “emerging market” countries entails all of the risks of investing in securities of non-U.S. issuers, as previously described, but to a heightened degree. China Investment Risk: Investing in securities of Chinese companies involves additional risks, including, but not limited to: the economy of China differs, often unfavorably, from the U.S. economy in such respects as structure, general development, government involvement, wealth distribution, rate of inflation, growth rate, allocation of resources and capital reinvestment, among others; the central government has historically exercised substantial control over virtually every sector of the Chinese economy through administrative regulation and/or state ownership; and actions of the Chinese central and local government authorities continue to have a substantial effect on economic conditions in China. Brazil, Russia and India Risk: Brazil has experienced substantial economic instability, which has led to a high degree of price volatility in both the Brazilian equity and foreign currency markets. Securities of Russian companies are exposed to the absence of developed legal structures governing private or foreign investments and private property; the possibility of the loss of all or a substantial portion of a fund’s assets invested in Russia as a result of expropriation. Securities of Indian companies risk greater price volatility, substantially less liquidity and significantly smaller market capitalization of securities markets, more substantial governmental involvement, wealth distribution, rate of inflation, growth rate allocation of resources and capital reinvestment, among others. Sector Concentration Risk: A significant percentage of the above referenced indices are comprised of issuers in a single industry or sector of the economy, which presents more risk that if they were broadly diversified among industries and sectors of the economy. Please refer to the prospectus for a detailed discussion of the risk of investing in these particular sectors. In addition, each of the Funds is subject to: Limited Exposure Risk, Micro-, Small- and Medium-Sized Company Risk, Non-Correlation Risk, Replication Management Risk, Issuer-Specific Changes, and Non-Diversified Fund Risk. All risks noted above are discussed in more detail in the Funds’ prospectus.

No index provider guarantees the quality, accuracy and/or the completeness of the index or any data included therein. No index provider makes any warranty, express or implied, as to results to be obtained by licensee, owners of the product, or any other person or entity from the use of the index or any data included therein in connection with the rights licensed hereunder or for any other use. No index provider makes any express or implied warranties, and hereby expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the index or any data included therein. Without limiting any of the foregoing, in no event shall any index provider have any liability for any special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages. The individual index providers determine, compose and calculate the index without regard for the respective products. The products are not sponsored, endorsed, sold or promoted by any index provider. The index providers have no obligation or liability regarding the administration, marketing or trading of the products, and make no representation or warranty to the owners of the product, or to any member of the public, regarding investing in securities generally or in the products particularly.

Investors should consider the investment objectives and policies, risk considerations, charges and ongoing expenses of the ETFs carefully before they invest. The prospectus contains this and other information relevant to an investment in the ETFs. Please read the prospectus carefully before you invest or send money. For this and more information, please contact a securities representative or Claymore Securities, Inc.

NOT FDIC – INSURED • NOT BANK – GUARANTEED • MAY LOSE VALUE

Claymore Securities, Inc. • 2455 Corporate West Drive • Lisle, Illinois 60532

1-888-949-3837 • www.claymore.com

Member FINRA/SIPC 1/10

Contacts

Press Contact:
Marisha Mistry
Edelman
212.704.4592
[email protected]

 

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