FUND SUMMARY
The Claymore Canadian Fundamental Index ETF has been designed to replicate the performance of the FTSE RAFI Canada Index, which comprises those Canadian companies with the highest fundamental weightings. The index weights constituents using four accounting factors, rather than market capitalization. These four factors include:
- Total cash dividends (five-year average of all regular and special distributions)
- Free cash flow (five-year average cash flow)
- Total sales (five-year average total sales)
- Book equity value (current period book equity value)
The Claymore Canadian Fundamental Index ETF offers the advantages of an active management strategy with the highlights of a passive investment: lower turnover costs and transparent rules-based selection, while retaining high investment capacity. By using these factors rather than market cap to weight stocks, the Fundamental Index takes advantage of price movements by reducing the index’s holdings in constituents whose prices have risen relative to other constituents, and increasing holdings in companies whose prices have fallen behind. In addition, fundamentals-weighting decreases exposure to high P/E stocks during episodes of unsustainable P/E expansion. Therefore, this approach avoids over-exposure to the more overvalued stocks.
Fund Statistics
as of 2/8/10
| |
MARKET PRICE |
NAV |
| Close |
$10.63 |
$10.61 |
| Change |
$0.10 |
($0.06) |
| 52-Week High |
$11.34 |
$11.33 |
| 52-Week Low |
$6.49 |
$6.47 |
| Bid/Ask Midpoint |
$10.62 |
| Bid/Ask Premium (Discount) |
0.06 % |
| Volume |
41,079 |
| Shares Outstanding |
10,303,000 |
| Total Managed Assets |
$109,303,338 |
| Total Managed Assets (Common and Advisor) |
$140,607,749 |
Price History
Figures are based on market close.
INDEX CHARACTERISTICS
as of 12/31/09
| Number of Securities | 65 |
| FTSE RAFI Canada Index | FRCAN |
| Average Market Capitalization | $ 31.33 Bil |
| Average Price/Earnings1 | 20.0 x |
| Average Price/Book2 | 1.88 x |
| Current Dividend Yield | $ 2.63 % |
| Index Provider | ftse.com |
1 Price/Earnings is a valuation ratio of a company's current share price compared to its per-share earnings.
2 A ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share.
RISKS AND OTHER CONSIDERATIONS
Morningstar Rating
The Morningstar Risk-Adjusted Rating, commonly referred to as the Star Rating, relates the risk-adjusted performance of a fund to its peers in the category. Morningstar calculates ratings only for categories with at least 20 funds. To determine a fund's rating, the fund and its peers are ranked by their MRARs. If a fund scores in the top 10% of its fund category, it receives five stars (High); if it falls in the next 22.5%, it receives four stars (Above Average); a place in the middle 35% earns a fund three stars (Neutral or Average); those in the next 22.5% receive two stars (Below Average); and the lowest 10% get one star (Low). Morningstar also accounts for instances where a fund is sold in multiple versions, whether multi-class, both trust and segregated, etc. In order to prevent one fund from unfairly taking up many places in a portion of the ratings scale, Morningstar treats multiple versions of a fund as "fractional funds". The multiple versions of a fund are all rated, but they collectively count as one and so leave more room for other deserving funds.
The overall Star Rating for a fund is a weighted combination of its three, five, and ten year ratings. If a fund has less than three years' performance history, it is not rated. If it has at least three but less than five years' history, its overall rating is equal to its three-year rating. If it has at least five but less than ten years' history, its overall rating is equal to 60% five-year rating and 40% three-year rating. If it has at least ten years' history, its overall rating is equal to 50% ten-year rating, 30% five-year rating and 20% three-year rating.
Morningstar Risk-Adjusted Ratings are recalculated monthly.
There is no assurance the Fund will achieve its investment objective. Past performance does not guarantee future results. Index returns do not represent Fund returns. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed. Their values change frequently and past performance may not be repeated.
An investment in the Fund will be subject to certain risk factors, including: there can be no assurance that the Fund will be able to achieve its distribution or total return objectives; Risk of Error in Replicating the FTSE RAFI Canadian Index; Equity Risk; Index Investment Strategy Risk; Tracking Error; Rebalancing and Adjustment Risk; Calculation and Termination of the FTSE RAFI Canada Index; Cease Trading of Constituent Securities; Illiquid Securities; Use of Derivative Instruments; Securities Lending; Trading Price of Units; Potential Conflicts of Interest; Changes in Legislation; Taxation of the Fund; Absence of an Active Market for the Units and Lack of Operating History.