Guggenheim has filed paperwork with the SEC for a “Guggenheim China Yuan Bond ETF.” The Fund seeks investment results that correspond generally to the performance, before the Fund’s fees and expenses, of a China Yuan bond index called the China Yuan Bond Index. They did not specify a trading symbol or operating expenses in the initial filing.
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 [ China Yuan Bond Index]. The Index is a rules-based index comprised of, as of December 31, 2010, approximately [ ] securities, which includes publicly-available bonds that are eligible for investment by U.S. investors and denominated in Chinese Yuan, whether issued by Chinese or non-Chinese issuers. The Fund will not invest in securities traded in mainland China. The Index includes only bond issuances with a minimum of Yuan 250 million outstanding par value, and bond issuances and/or issuers that have a Standard & Poor’s Ratings Services (“S&P”) or Fitch Ratings’ rating of BBB- or better and/or Moody’s Investors Service (“Moody’s”) rating of Baa3 or better (or equivalent). The Index was created by [ ] (“[ ]” or the “Index Provider”) and is maintained by [ ] (the “Index Administrator”). The Index methodology is published at[ ]. The Fund will invest at least 80% of its total assets in fixed income 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 Claymore Exchange-Traded Fund Trust 2 (the “Trust”) may change the Fund’s investment strategies and other policies without shareholder approval, except as otherwise indicated.
Guggenheim Funds Investment 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 expects to use a sampling approach in seeking to achieve its investment objective. Sampling means that the Investment Adviser uses quantitative analysis to select securities from the Index universe to obtain a representative sample of securities that resemble the Index in terms of key risk factors, performance attributes and other characteristics. These include maturity, credit quality, duration and other financial characteristics of securities. The quantity of holdings in the Fund will be based on a number of factors, including asset size of the Fund. However, the Fund may use replication to achieve its objective if practicable. There may also be instances in which the Investment Adviser may choose to overweight another security in the Index, or purchase (or sell) securities not in the Index which the Investment Adviser believes are appropriate to substitute for one or more Index components, 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.
For the comlpete filing click: HERE