Claymore Launches New High Income and Sudan Free ETFs

Claymore Securities launched another ETF on Monday. The Claymore/BBD High Income Index ETF (LVL) tracks the Benchmarks By Design Index that uses multi-factor proprietary selection rules to identify the securities.

They are chosen across all asset classes and include those that offer the greatest potential from an income and risk/return perspective, as the press release states. This ETF is highly liquid, income-oriented and comprises 110-150 securities selected by a proprietary measure.

The companies are U.S. listed common stocks, American Depository Receipts [ADRs], Real Estate Investment Trusts [REITs], Master Limited Partnership [MLPs], Closed End Funds [CEFs] and traditional preferred stocks that feature superior high risk/return profiles.

New Sudan Free ETF
Claymore also launched the first ETF based on the Sudan divestment issue on the American Stock Exchange. This socially responsible ETF is the Claymore/KLD Sudan Free Large-Cap Core ETF (KSF) that tracks the KLD Large-Cap Sudan Free Social Index, according to the press release.

Claymore is the first to offer an ETF based on an index with a Sudan-free mandate in the methodology. Citizens concerned about the crisis in Darfur have worked toward legislature and mandates to eliminate corporate support of Sudan's current regime. To be part of the KLD index, business involvement is screened for the following factors:

Owns or controls business or property in Sudan

Has employees or facilities in Sudan

Provides goods or services to companies domiciled in Sudan

Obtains goods/services from Sudan

Has distribution agreements with companies domiciled in Sudan

Issues credits or loans to companies domiciled in Sudan

Purchases goods or commercial paper issued by the government of Sudan