Claymore has filed paperwork with the SEC for a “WILSHIRE LARGE-CAP ETF.” There was no symbol listed at this time. The Fund will seek investment results that correspond generally to the performance, before the Fund’s fees and expenses, of an equity index called the Wilshire US Large-Cap Index(SM) (the “Wilshire Large-Cap” or the “Index”).
PRINCIPAL INVESTMENT STRATEGIES
The Fund, using a low cost “passive” or “indexing” investment approach, will seek to replicate, before the Fund’s fees and expenses, the performance of the Wilshire Large-Cap. The Wilshire Large-Cap is a rules-based index comprised of, as of February 28, 2010, approximately 746 securities of large-capitalization companies, as defined by Wilshire Associates Incorporated (“Wilshire” or the “Index Provider”). The Wilshire Large-Cap is designed to represent large-sized companies and is a subset of the Wilshire 5000 Total Market Index(SM) (the “Wilshire 5000”). The Wilshire Large-Cap represents a float-adjusted, market capitalization-weighted index of the largest 750 issues by market capitalization of the Wilshire 5000. Under normal conditions, the Fund will invest at least 80% of its assets in securities of large-capitalization companies, as determined by the Index Provider. In addition, the Fund will normally invest at least 80% of its total assets in equity securities that comprise the Index and investments that have economic characteristics that are substantially identical to the economic characteristics of the component securities that comprise the Index. The Fund has adopted a policy that requires the Fund to provide shareholders with at least 60 days notice prior to any material change in this policy or the Index. The Board of Trustees of the Trust may change the Fund’s investment strategy and other policies without shareholder approval, except as otherwise indicated. Claymore Advisors, LLC (the “Investment Adviser”) seeks a correlation over time of 0.95 or better between the Fund’s performance and the performance of the Index. A figure of 1.00 would represent perfect correlation.
The Fund generally will invest in all of the securities comprising the Index in proportion to their weightings in the Index. However, under various circumstances, it may not be possible or practicable to purchase all of the securities in the Index in those weightings. In those circumstances, the Fund may purchase a sample of the securities in the Index in proportions expected by
the Investment Adviser to replicate generally the performance of the Index as a whole. There may also be instances in which the Investment Adviser may choose to overweight another security in the Index, purchase (or sell) securities not in the Index which the Investment Adviser believes are appropriate to substitute for one or more Index components, or utilize various combinations of other
available investment techniques, in seeking to accurately track the Index. In addition, from time to time securities are added to or removed from the Index. The Fund may sell securities that are represented in the Index or purchase securities that are not yet represented in the Index in anticipation of their removal from or addition to the Index.