Topic: How To Invest

Pat: I would like to know what your thoughts are on the following: Claymore BRIC ETF. Regards.

Article Excerpt

The Claymore BRIC exchange-traded fund (ETF), $27.60, symbol CBQ on Toronto (Shares outstanding: 10.9 million; Market cap: $300.5 million), invests in the BNY (Bank of New York) Mellon BRIC Select ADR Index. This index tracks the performance of companies from the so-called “BRIC” countries: Brazil, Russia, India and China. The companies in this index trade on U.S. stock exchanges as American or global depositary receipts. The Claymore BRIC ETF hedges its exposure to U.S. dollars in order to lower the impact of fluctuations in foreign-exchange rates. The fund selects companies using a system, developed by the Bank of New York Mellon, that is based on several criteria, including liquidity, share price and market capitalization. There are currently about 87 securities in the fund’s portfolio. Its managers seek to hold the largest-capitalization stocks in the volatile markets in which it invests. The Claymore BRIC ETF was launched in September 2006, at an initial price of $20 per unit. It has an MER of…