LISLE, Ill.–(BUSINESS WIRE)–The Claymore/AlphaShares China All-Cap ETF (YAO) which launched on October 19th, posted trading volume totaling over 1.3 million shares on its first full day of trading. This marks a record first-day volume for any US-listed ETF launched to date in 2009 and the 11th largest first day volume for an US-listed ETF ever.1
“The popularity of this product acknowledges investor interest in an all-cap China ETF that provides exposure to every sector, including Technology and Consumer Discretionary,” said Christian Magoon, President of Claymore Securities, Inc. “We’re very pleased with the robust investor interest so far in YAO, which gives investors access to the world’s highest expected GDP growth opportunity for 2009 and 20102.”
YAO is Claymore’s third China-focused ETF, joining the Claymore/AlphaShares China Small Cap Index ETF (HAO), a China small cap ETF, and the Claymore/AlphaShares China Real Estate ETF (TAO), a China real estate ETF. YAO seeks to replicate the AlphaShares China All Cap Index (Index Ticker: ACNAC) (the “Index”), an index that seeks to measure and monitor the performance of the investable universe of publicly-traded companies based in mainland China of all capitalizations. As of September 30, 2009 the Index included 99 securities from all market capitalizations with approximately 57% in large capitalization securities, 33% in mid capitalization securities and 10% in small capitalization securities, based on free-float adjusted market capitalizations. In addition, YAO provides broad sector diversification which includes exposure to all 10 S&P GICS sectors. At each reconstitution, the companies included in the Index must have a float-adjusted market capitalization of $500 million or greater for initial inclusion and $400 million or greater for ongoing inclusion. The Index utilizes a modified market capitalization weighting methodology. For more information on YAO please visit www.claymore.com/yao.
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, and/or servicing on approximately $13.3 billion in assets, as of September 30, 2009. Claymore currently offers closed-end funds, unit investment trusts and exchange-traded funds. Additional information on Claymore’s exchange-traded funds is available by calling 888.WHY.ETFS (888.949.3837) or visiting www.claymore.com/ETFs. Registered investment products are sold by prospectus only and investors should read the prospectus carefully before investing.
AlphaShares, LLC is an investment management firm dedicated to providing investors with strategies and products to participate in China’s fast growing economy. AlphaShares investment philosophy and strategies are based on the beliefs and research of co-founder and Chief Investment Officer, Dr. Burton G. Malkiel.
Investors should consider the following risk factors and special considerations associated with investing in the Fund, 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 the Fund will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by the Fund participate, or factors relating to specific companies in which the 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. In addition, previously the Chinese government has from time to time taken actions that influence the prices at which certain goods may be sold, encourage companies to invest or concentrate in particular industries, induce mergers between companies in certain industries and induce private companies to publicly offer their securities to increase or continue the rate of economic growth, control the rate of inflation or otherwise regulate economic expansion. From time to time, certain of the companies comprising the Index that are located in China may operate in, or have dealings with, countries subject to sanctions or embargoes imposed by the U.S. government and the United Nations and/or in countries identified by the U.S. government as state sponsors of terrorism. Micro-, Small- and Medium-Sized Company Risk: Investing in securities of these companies involves greater risk as their stocks may be more volatile and less liquid than investing in more established companies. These stocks may have returns that vary, sometimes significantly, from the overall stock market. Micro-cap companies may be newly formed, less developed and there may be less available information about the company. In addition, the Fund is subject to: Non-Correlation Risk, Replication Management Risk, Issuer-Specific Changes, and Non-Diversified Fund Risk. Please read the Fund’s prospectus for more detailed information on these risks and considerations.
The Fund is not sponsored, endorsed, sold or promoted by AlphaShares, LLC (“Licensor”). Licensor makes no representation or warranty, express or implied, regarding the advisability of investing in securities generally or in the Fund particularly or the ability of the AlphaShares China All Cap Index (“Index”) to track general market performance. Licensor’s only relationship to Claymore Advisors, LLC (“Licensee”) is the licensing of the Index which is determined, composed and calculated by Licensor without regard to Licensee or the Fund. Licensor has no obligation to take the needs of the Licensee or the shareholders of the Fund into consideration in determining, composing or calculating the Index. Licensor shall not be liable to any person for any error in the Index nor shall it be under any obligation to advise any person of any error therein.
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.
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Lisle, Illinois, 60532
Member FINRA/SIPC 10/09
1 Source Claymore using Bloomberg data
2 China is predicted to be the world’s highest GDP growth in both 2009 and 2010 according to World Economic Outlook Update (October 2009) © International Monetary Fund (IMF).
Marisha Mistry, 212.704.4592