Claymore Launches Fixed Income ETF’s (UEM, UBD, ULQ)

Claymore Securities Inc., has just launched three broad market exchange traded funds that are designed to track the value of the U.S. capital markets (bonds). The Claymore Capital Markets ETFs have launched on the American Stock Exchange and include the following:

• Claymore U.S.-1–The Capital Markets Index ETF (AMEX: UEM); The Capital Markets Index (the "CPMKTS Index") includes equity, fixed income and money market securities and is designed to be a long term measure of the three segments of the U.S. investment grade capital markets.
• Claymore U.S. Capital Markets Bond ETF (AMEX: UBD); The Capital Markets Bond Index (the "CPMKTB Index") is designed to be a long-term measure of the performance of the U.S. investment grade bond markets.
• Claymore U.S. Micro-Term Fixed Income ETF (AMEX: ULQ); The Capital Markets Liquidity Index (the "CPMKTL Index") represents the U.S. money markets and in the micro-term fixed income capital markets, but the Fund is not a money market fund and thus does not seek to maintain a stable net asset value of $1.00 per share.

ETF launches have been muted so far this year.  It is not just that the market has been volatile and adverse to new issuances.  The merger between the NYSE & AMEX has likely created some confusion over listings and future fees for being listed.  Hopefully this won’t be the last group of new ETF’s we see, even if these might be a bit thinner in trading volume than some of the other fixed income ETF’s.

Jon C. Ogg
February 12, 2008