Time May Be Right For The Luxury ETF

by: Carl T. Delfeld

With all the economists and gurus wringing their hands over the possibility of a drop in consumer spending, maybe it is a good time to take a look at the Claymore/Robb Report Global Luxury exchange-traded fund (ROB).

Two points may be eluding some analysts. First, roughly 60% of total US spending is by the top 20% income earners. Their purchasing power is unlikely to pull back sharply. Second, the number of wealthy individuals frlom emerging nations is absolutely staggering and they want the best. Just one, example is Mr. Carlos Slim, the wealthiest man in the world whose net worth goes up $52 million a day!

This ETF will hold from twenty to one hundred securities of firms that cater to the wealthy including retailers, manufacturers of automobiles, boats, aircraft, and consumer electronics as well as travel and leisure firms, and investment and other professional services firms. It currently has 42 firms in its basket and 72% of them are domiciled in the U.S., France and Switzerland.

Here are the top ten current holdings in the ETF and their weighting.

DAIMLERCHRYSLER AG NPV(REGD) 5.48 % GOLDMAN SACHS GROUP INC 5.16 % LVMH MOET HENNESSY LOUIS VUITTON 5.11 % COMPAGNIE FINANCIERE RICHEMONT-UTS 5.08 % PPR SA 5.03 % BAYERISCHE MOTOREN WERKE AG (BMW) 4.87 % PERNOD-RICARD SA 4.78 % CHRISTIAN DIOR SA 4.69 % UBS AG 4.53 % CREDIT SUISSE GROUP 4.37 %