FUND SUMMARY
The Claymore Broad Emerging Markets ETF has been designed to provide investors with exposure to the return and performance of an Emerging Markets Benchmark Index, net of expenses. The Claymore Broad Emerging Markets ETF currently tracks the MSCI® Emerging Markets Index and is invested in the Vanguard Emerging Markets ETF. The Manager may, in its discretion and without unitholder approval, change the Emerging Markets Benchmark Index to another widely recognized emerging markets index, such as the FTSE RAFI Emerging Index, in order to provide investors with exposure to an Emerging Markets Benchmark Index.
Hedging currency exposure to reduce the impact of fluctuations in exchange rates on the Claymore Broad Emerging Markets ETF is intended to reduce the direct exposure to non-Canadian dollar currency risk for unitholders of such fund.
Overview of Emerging Markets
The Claymore Broad Emerging Markets ETF invests in companies domiciled in emerging markets countries. The International Bank for Reconstruction and Development (World Bank) defines an emerging markets country as one whose economy has low-to-middle per capita income. Such countries constitute approximately 80% of the global population, representing about 20% of the world’s economies. The Index Provider of an Emerging Markets Benchmark Index may apply its own quantitative and/or qualitative criteria for determining qualification as an emerging markets country.
By way of illustration, among other countries, the MSCI Emerging Markets Index and the FTSE RAFI Emerging Index include securities issued by companies domiciled in Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.