Claymore Exchange Traded Fund

By: EconomyWatch   Date: 23 November 2010

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The Claymore exchange traded fund can be found listed on the American Stock Exchange in a manner similar to shares belonging to a public trading company.

The Claymore exchange traded fund offers a convenient way to approach indices which are designed in order to provide investment solutions.

The Claymore exchange traded fund helps in tracking the best investment opportunities prevailing in the market. The Claymore exchange traded fund can be traded throughout the business hours of the American Stock Exchange.

The individuals investing on Claymore exchange traded fund in the secondary market are required to shell out transaction charges and costs for brokerage.

The cost of Claymore exchange traded fund varies owing to the variations in the trading volume of the Claymore exchange traded fund.

In order to invest in the Claymore exchange traded fund, one needs to carefully ascertain the risks involved in the investment.

The nature of the risks involved in trading Claymore exchange traded fund may include the following but is not necessarily restricted to the same.

  • Equity risk, foreign investment risk, risks associated with emerging markets, non-correlation risk, small sized company risk, medium sized company risk, risk related to micro cap, replication management index, risks associated with specific issuers, risk related to non diversified fund, risk related to patenting, risk related to industry
    Characteristics of Claymore exchange traded fund:

    • The Claymore exchange traded fund has the following characteristics:


  • Benefit of tax:
    The Claymore exchange traded fund are designed keeping in mind the benefits of tax an individual may avail.


  • Cost effective:
    Claymore exchange traded fund are cost effective. The Claymore exchange traded fund possess low annual expense ratio. The reason being that the Claymore exchange traded fund are based on indices.


  • Transparent working:
    The information on Claymore exchange traded fund stake is regularly made available to the investors.

    This transparency enables an investor to take a decision regarding investment in the exchange traded fund.


  • Liquidity:
    Claymore exchange traded fund allows an individual to trade on the stock exchange during all business hours of the stock exchange on a single day.

    In addition to the above mentioned characteristics of Claymore exchange traded fund, flexible trading of Claymore exchange traded fund and diversified method of trading is also facilitated.


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