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Claymore Filing: Equal-Weighting The Wilshire 5000?
By Matt Hougan | December 23, 2009 8:16 am

Related ETFs: HAO / EEB / TAN / RSP

 

Claymore, a company known for providing interesting “satellite” exchange-traded funds, is making a play for the core section of the market.

The company, which was recently acquired by Guggenheim Partners, filed papers with the Securities and Exchange Commission yesterday to launch four ETFs addressing core sections of investor portfolios:
  • Wilshire 5000 Total Market ETF
  • Wilshire 4500 Completion ETF
  • Wilshire US REIT ETF
  • Wilshire 5000 Equal-Weighted ETF

Claymore would not be first to market with either the Wilshire 5000 or Wilshire 4500 Completion ETFs, but it would be the only one to currently do so. ETFs offered by State Street and Vanguard that once tracked those indexes have since switched to similar indexes offered by other providers.

The REIT ETF and the Wilshire 5000 Equal-Weighted ETF would also be unique, and among the four ETFs, the equal-weighted fund is likely to attract the most buzz. A large number of equal-weighted ETFs already exist, including the $1.7 billion Rydex S&P Equal Weight ETF (NYSEArca: RSP). Investors seem to like the fund’s regular rebalancing schedule, and use it as an alternative to S&P 500 ETFs when they want to take on additional risk in their portfolios.

An equal-weighted Wilshire 5000 ETF would be unique in that it would significantly skew the portfolio to small- and mid-cap names.

Combined, the funds will give Claymore a core suite of products to supplement its existing satellite offerings. As of Nov. 30, 2009, Claymore had $1.7 billion in assets under management. Its largest funds were the Claymore/BNY Mellon BRIC (NYSEArca: EEB), Claymore/AlphaShares China Small Cap (NYSEArca: HAO) and Claymore/MAC Global Solar Energy (NYSEArca: TAN) ETFs.

You can access the new filing here.

 

 

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