Claymore's Global Timber ETF (CUT): A Possible Alternative for Today's Markets
25 June 2008 - 6:37AM
Business Wire
Claymore Securities Inc., the third fastest-growing exchange-traded
fund provider in 2007*, today announced that its Claymore/Clear
Global Timber Index ETF (AMEX: CUT) continues to gain momentum as
investors increasingly look for possible alternatives in today�s
volatile markets. Launched in November 2007, CUT was the first
U.S.-listed global timber ETF to offer investors exposure to the
timber asset class. Timber has traditionally been an asset class
valued by institutional investors such as endowments and pension
managers for its diversification benefits. �Timber investments tend
not to move in the same direction as traditional equity
investments,� said Christian Magoon, President of Claymore
Securities and Head of its ETF Group. �Since its launch, CUT has
gained wide acceptance�investors are increasingly recognizing that
timber may provide a unique diversification.� With $52 million in
assets under management as of June 23, 2008, CUT is the world�s
largest and most liquid ETF providing retail investors access to
timber, according to Bloomberg data. The Claymore/Clear Global
Timber Index ETF seeks investment results that correspond generally
to the performance, before the Fund's fees and expenses, of an
equity index called the Clear Global Timber Index (the �Index�)
(http://www.clearindexes.com/timber). Stocks in the Index are
selected from the universe of global timber companies and defined
by Clear Indexes LLC, the index provider, as firms that own or
lease forested land and harvest the timber from such forested land
for commercial use and sale of wood-based products, including
lumber, pulp or other processed or finished goods such as paper and
packaging. For more information about CUT and timber as a
historically non-correlated asset, please see www.claymore.com/CUT.
*Source: Claymore Securities, Inc., Bloomberg 2007 ETF data About
Claymore Securities Claymore Securities, Inc. is a privately-held
financial services company offering unique investment solutions for
financial advisors and their valued clients. Claymore entities have
provided supervision, management, servicing or distribution on
approximately $18.4 billion in assets as of April 30, 2008.
Claymore currently offers exchange-traded funds, unit investment
trusts and closed-end funds. Claymore Advisors, LLC, an affiliate
of Claymore Securities, Inc, serves as investment adviser to the
Fund. Risks and Other Considerations: There can be no assurance
that the Fund will achieve its investment objective. An investment
in the Fund is subject to investment risk, which is the possible
loss of the entire principal amount that you invest. There is a
risk that the value of the securities held by the Fund will fall
due to general market and economic conditions. The market value of
securities of global timber companies may be affected by numerous
factors, including, but not limited to, events occurring in nature,
international politics, global competition, supply and demand
issues and environmental, safety or health laws and regulations. As
the Fund is focused in the global timber industry, it may be
subject to more risks than if it were broadly diversified over
numerous industries and sectors of the economy. The Fund�s
investments in non-U.S. issuers may involve unique risks compared
to investing in securities of U.S. issuers, including, among
others, greater market volatility than U.S. securities and less
complete financial information than for U.S. issuers. Investment in
securities of issuers based in developing or �emerging market�
countries entails a heightened degree of risk. Non-diversified ETFs
invest a greater portion of assets in securities of individual
issuers than a diversified ETF and therefore, may cause greater
volatility. ETFs are not �actively� managed and would not
necessarily sell a stock because the stock�s issuer was in
financial trouble unless that stock is removed from the index. ETFs
are subject to potential tracking errors and returns may not match
the returns of the index. ETFs that focus on small and medium-sized
companies generally experience greater price volatility and risk
than investing in more established companies. In addition to the
risks described above, there are certain other risks related to
investing in ETFs. Please read the prospectus for more detailed
information. The Fund is not sponsored, endorsed, sold or promoted
by Clear Indexes LLC (�Licensor�). Licensor makes no representation
or warranty, express or implied, regarding the advisability of
investing in securities generally or in the Fund particularly or
the ability of the Clear Global Timber Index (�Index�) to track
general market performance. Licensor�s only relationship to the
Claymore Advisors, LLC (�Licensee�) is the licensing of the Index
which is determined, composed and calculated by Licensor without
regard to the Licensee or the Fund. Licensor has no obligation to
take the needs of the Licensee or the owners of the Fund into
consideration in determining, composing or calculating the Index.
Licensor shall not be liable to any person for any error in the
Index nor shall it be under any obligation to advise any person of
any error therein. Investors should consider the investment
objectives and policies, risk considerations, charges and expenses
of the ETF carefully before investing. The prospectus contains this
and other relevant information. Investors should read the
prospectus carefully before investing or sending money. For this
and more information, please contact a securities representative
or: NOT FDIC - INSURED � NOT BANK - GUARANTEED � MAY LOSE VALUE
Claymore Securities, Inc. � 2455 Corporate West Drive � Lisle,
Illinois 60532 1-888-949-3837 � www.claymore.com Member FINRA/SIPC
6/08
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