Five New ETFs From... Claymore

Includes: CVY, EEB, NFO, WMCR, XRO
by: Roger Nusbaum

Roger Nusbaum submits: If you did not see the in depth 30 second segment on CNBC you may have missed the news: The five ETFs are the Claymore/Zacks Yield Hog ETF (NYSEARCA:CVY), the Claymore/Zacks Sector Rotation ETF (NYSE:XRO), Claymore/Sabrient Insider ETF (NYSEARCA:NFO), Claymore/Sabrient Stealth ETF (STH) and Claymore/BNY BRIC ETF (NYSEARCA:EEB). As a side note, Claymore listed essentially the same BRIC ETF in Toronto under ticker CBQ in the last couple of weeks.

I will be doing a write up on CVY for on Tuesday (it will be available for free). These ETFs have been in the pipeline for a while, and I have touched on them briefly in the past. The potential problem I see in utilizing some of these funds like Stealth, Insider and Sector Rotation, is difficulty in managing the capsize, style and sector weighting. The back tested performance has been very good, and while relying on back testing is not ideal, good results certainly are better than nothing. (Of course if the results stunk there'd be no fund.)

If you have interest in picking a strategy, similar to a stock screen, to include in a diversified portfolio, you need to check the balance of your fund in the context of your portfolio a little more often than most folks, if staying diversified is a priority.

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