Save Darfur, Win Big

For example, KLD says PepsiCo (PEP Quote) sells beverage concentrates to an independent bottler in Sudan. So even though it doesn't have equity interest in the bottler, Pepsi is out of the index.

Schlumberger(SLB Quote) is too. KLD says the company provides support services to oil companies operating in Sudan.

The ETF's top 10 holdings are Microsoft(MSFT Quote), AT&T(T Quote), Bank of America (BAC Quote), Procter & Gamble (PG Quote), Johnson & Johnson (JNJ Quote), Cisco Systems (CSCO Quote), IBM(IBM Quote), Intel(INTC Quote), Verizon(VZ Quote) and Google(GOOG Quote).

In contrast, the top 10 holdings of the Russell 1000 include five stocks excluded from the Sudan Free ETF: Exxon Mobil (XOM Quote), General Electric (GE Quote), Citigroup(C Quote), Pfizer(PFE Quote) and Chevron(CVX Quote).

The KLD Large-Cap Sudan Free SocialSM Index currently has approximately 640 stocks.

The Sudan-Free ETF can only benefit as the Sudan divestment movement garners wider support. A number of state governments are enacting legislation to prohibit their public pension systems from investing in companies doing business with the African nation.

Just last week, Texas and Hawaii signed divestment legislation, bringing the total to 18 states, according to the Sudan Divestment Task Force. If that keeps up, managers of state pension plans wanting an easy way to follow the law will probably consider it a no brainer to put assets into Claymore's Sudan Free ETF.