Claymore Securities, an exchange-traded fund firm known mostly for its niche investment strategies, plans to launch 10 broadly focused ETFs that again use indexes from Wilshire Associates, and follow the launch of three broad-based funds by the two firms earlier this month.
The new offerings represent the latest move by Lisle, Ill.-based Claymore’s away from its roots as a purveyor of specialty funds, such as the solar power industry ETF (NYSEArca: TAN), and toward a firm offering a full line of ETFs. The new broad strategy comes on the heels of Claymore’s acquisition by Guggenheim Partners in October, the company has said.
The first filing with the Securities and Exchange Commission outlined plans for nine ETFs covering a full spectrum of sizes and investment styles, while the second was for a fund focusing on non-U.S. real estate investment trusts.
The nine funds covered in the first filing include the Wilshire Large-Cap ETF; the Wilshire Large-Cap Growth ETF; the Wilshire Large-Cap Value ETF; the Wilshire Mid-Cap ETF; the Wilshire Mid-Cap Growth ETF, the Wilshire Mid-Cap Value ETF; the Wilshire Small-Cap ETF; the Wilshire Small-Cap Growth ETF and the Wilshire Small-Cap Value ETF, the March 19 filing said. The 10th fund is called the Wilshire Ex-U.S. Real Estate ETF. Both filings were dated March 19.
Claymore disclosed neither fees of the new funds nor any of their trading symbols. They will all be based on similarly named indexes licensed by Los Angeles-based Wilshire.
Competing On Price
The most broadly focused ETF Claymore launched on March 9, the Wilshire 5000 Total Market Index ETF (NYSEArca: WFVK), is based the Wilshire 5000, the most well known of the firm’s indexes.
WFVK’s annual fee of 0.12 percent a year reflects Claymore’s willingness to compete on price, William Belden, a managing director at the firm who oversees new product development, has said. The ETF most like WFVK is the SPDR Dow Jones Total Market ETF (NYSEArca: TMW), and it has an expense ratio of 0.21 percent. Until about a year ago, TMW was based on the same Wilshire index as WFVK, and even today tracks a very similar benchmark.
The other two funds that went live on that day are the Wilshire 4500 Completion Index ETF (NYSEArca: WXSP) and the Wilshire US Real Estate Investment Trust Index ETF (NYSEArca: WREI).
Belden said that while the presence of Guggenheim will allow Claymore to continue broadening its horizons, it won’t turn its back on its reputation as a purveyor of sector funds.
Claymore has $2.8 billion in ETF assets under management in the