Positive NPV

I Just Don't Get These New Claymore ETFs

I haven't read the Claymore material, so I don't claim to understand their intention. However I can see the point of an ETF that tries to capture the totality of the capital markets.

If one believes in some form of the efficient market hypothesis, then one rational approach would be to construct a portfolio with exposure to all asset classes that exist in the world. And, depending on how strong one believes in the EMH, one might desire a capitalization-weighte... exposure to the asset classes.

The Claymore product, if constructed appropriately, could be the proxy for the capital markets assets. (I don't know if they've constructed it to represent the world, just the US, the US and EU, etc.) That could be the end of the job for some people.

However, if you want true exposure to all the assets in the world, then that would leave a portfolio builder the the job of filling in the holes with securities that provide exposure to all the remaining asset classes (commodities, RE, collectibles, currency, capital markets that may not be in the Claymore ETFs such as certain emerging markets, etc.).