Guggenheim has filed paperwork with the SEC for a “Guggenheim Small-Mid Cap BRIC ETF.” The Fund seeks investment results that correspond generally to the performance, before the Fund’s fees and expenses of an equity index called the BNY Mellon Small-Mid BRIC 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 BNY Mellon Small-Mid BRIC Index. The BNY Mellon Small-Mid BRIC Index is a rules-based index comprised of, as of October 31, 2010, approximately 44 securities, which may include all common stocks, UK traded depositary receipts (“DRs”) and US exchange-listed American depositary receipts (“ADRs”) of companies from Brazil, Russia, India and China (“BRIC”) that are generally considered to be small and mid cap companies within their respective markets, as defined by BNY Mellon (“BNY Mellon” or the “Index Provider”). The depositary receipts included in the Index may be sponsored or unsponsored. A fact sheet containing the Index methodology is published at www.bnymellondrindex.com. The Fund will invest at least 80% of its total assets in common stocks and ADRs that comprise the Index and depositary receipts representing common stocks included in the Index (or underlying securities representing ADRs included in 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 strategies and other policies without shareholder approval, except as otherwise indicated.
The Fund may invest directly in one or more underlying securities represented by the ADRs included in the Index under the following limited circumstances: (a) when market conditions result in the underlying security providing more liquidity than the ADR; (b) when an ADR is trading at a significantly different price than its underlying security; or (c) the timing of trade execution is improved due to the local market in which an underlying security is traded being open at different times than the market in which the security’s corresponding ADR is traded.
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 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 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 complete filing click: HERE