Basics & Benefits of ETFs : Benefits of Claymore ETFs

Innovative

Claymore ETFs provide access to innovative indexes distinctly designed as investment solutions. Unlike ETFs that track traditional indexes representing market participation, the indexes Claymore ETFs track seek to best capture the investment potential of unique strategies.

Strategy Driven

Claymore believes that a strategy-driven, quantitative process provides a disciplined investment approach that may offer the potential for superior performance over market cycles.

Best-in-Class Index Providers

The indexes Claymore ETFs seek to track are designed by best-in-class index providers with defined investment philosophies. These index providers have backgrounds in areas including financial analysis, academic research and investment research and management.

Features of Claymore ETFs

  • Tax-efficient operation: ETFs are designed with tax-efficiency in mind, meaning they may make substantially lower capital gains distributions relative to actively managed funds, however there is no guarantee this will occur.
  • Intraday Liquidity:ETFs can be bought and sold throughout the day on a stock exchange during normal trading hours.
  • Flexibility:Similar to stock trading, ETFs can be purchased on margin, sold short and can have stop and limit orders placed on them.
  • Transparency:ETFs post their holdings on a daily basis, thereby enabling investors to know what they own and to make more informed investment decisions.
  • Cost efficiency:ETFs have relatively low annual expense ratios compared to other traditional mutual funds. This is because ETFs are index-based and generally do not experience the amount of portfolio turnover and trading costs that other products may have.
  • Diversification:ETFs represent an investment in an index or basket of securities, thus providing a convenient approach to achieve diversification. This level of diversification would be time consuming (and expensive) to replicate using individual stocks and bonds.
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