On January 11, 2012, Claymore Investments, Inc. (“Claymore”), the manager of the Claymore exchange traded funds, announced that BlackRock, Inc. (“BlackRock”) entered into a definitive agreement with subsidiaries of Guggenheim Partners, LLC (“Guggenheim”) to acquire all of Guggenheim’s interest in Claymore (the “Transaction”). The Transaction closed on March 7, 2012. As of March 7, 2012, Claymore is owned and controlled by BlackRock, Inc.

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Basics & Benefits of ETFs : Understanding Liqudity

Exchange-traded funds offer the same level of liquidity as individual stocks. They can be bought and sold on stock exchanges at intraday prices at any time during market hours. Unlike common stocks or closed-end mutual funds, however, the liquidity of ETFs is not based on the trading volume of a finite number of shares, but on the liquidity of the constituent stocks in the index being tracked. This further enhances their liquidity potential, allowing for a risk-adjusted performance not available with either stocks or mutual funds.

ETF Structure Provides Two Levels of Liquidity

Exchange-traded funds offer unparalleled liquidity relative to mutual funds and stocks. This occurs at two levels:

Market supply and demand. As with stocks, the natural trading of ETFs among individual investors and/or traders which takes place on the stock exchange during market hours provides one level of liquidity.
Designated brokers. Designated brokers (DBs), who hold a contractual agreement with the ETF provider allowing them to trade directly with the fund, provide the second layer of liquidity. DBs also assist in maintaining an orderly market for the ETF by keeping the market price of the underlying portfolio of securities in line with the intraday net asset value of the ETF.

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The information on this web site is intended for Canadian residents only. The information and opinions provided herein are subject to change and should not be construed as a solicitation or offering of units of any fund or other security in any jurisdiction to any person to whom it is not lawful to make such an offer. All rights reserved. Market information used on this website is obtained from non-proprietary market sources. While we believe this information to be accurate, Claymore Investments, Inc. (expected to be renamed BlackRock Investments Canada Inc.) and its affiliates cannot attest to the validity of information culled from other sources. The Claymore logos and "Claymore Investments, Inc." are protected under various Trademark Registrations in International Class 36 and are the sole property of Claymore Investments, Inc.

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