Claymore is first with US-listed frontier ETF
Claymore Securities has become the first exchange traded fund provider to offer a frontier index ETF that will be listed in a US exchange, following the trail of European rivals.
Claymore is launching the ETF that will track the Bank of New York Mellon’s New Frontier DR Index and will be listed on the NYSE Arca options exchange.
The index has exposure to 41 countries that are less developed than emerging markets and includes companies with a market capitalisation of more than $100m (€65m).
The companies have depository receipts that are traded either on US exchanges or the London Stock Exchange.
Christian Magoon, head of Claymore’s ETF Group, said: “Frontier markets have been referred to as the next generation of emerging markets and may potentially offer attractive risk and return ratios, as well as lower correlations to developed and emerging markets."
The first frontier ETF was launched earlier this year by Deutsche Bank, which actually launched two of them in February. They are traded on various stock exchanges in Europe, including the London Stock Exchange and SWX Swiss Exchange.
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