Claymore/KLD Sudan-Free Large-Cap Core ETF

Claymore Securities launched two new exchange-traded funds on the American Stock Exchange on Monday, June 25: the Claymore BBD/High Income ETF Index Fund (AMEX: LVL) and Claymore/KLD Sudan-Free Large-Cap Core ETF (AMEX: KSF). These new funds bring Claymore’s total ETF product lineup to 23 ETFs.

The Claymore/KLD Sudan-Free Large-Cap Core fund is the first socially responsible ETF tied to a Sudan-free mandate.

KSF seeks to track KLD Investment & Analytics’ Large-Cap Sudan-Free Social Index [LCSF]. KLD constructs this index by selecting stocks from the Russell 1000 Index with market caps greater than $1 billion. Chosen stocks are screened for environmental, social and governance factors, as well as business involvement in the tumultuous Sudan region. The fund charges 50 basis points (0.50%) in expenses.

KSF’s average market capitalization is $65.8 billion and the ETF currently holds 724 securities. The fund has an average P/E of 26.03x.

As more attention is drawn to the humanitarian crisis in Darfur, this ETF may gain traction among socially responsible investors looking to remove corporations with business activities in Sudan from their portfolios.