Claymore Securities, Inc., an innovator of investment product solutions and wholly-owned subsidiary of Guggenheim Partners, LLC, and BNY Mellon, the global leader in asset management and securities servicing, today announced that the
Claymore/BNY Mellon Frontier Markets ETF
(the “Fund”) has surpassed $130 million in total assets. The Fund launched in June 2008 and trades on the NYSE Arca under the symbol “FRN.”
The Fund seeks investment results that correspond generally to the performance, before the Fund’s fees and expenses, of an equity index called the BNY Mellon New Frontier DR Index (the “Index”). Currently, the Index contains 47 constituents from 15 countries, including Argentina, Chile, Colombia, Czech Republic, Egypt, Georgia, Kazakhstan, Lebanon, Nigeria, Oman, Pakistan, Peru, Poland, Qatar and Ukraine. Sectors currently represented in the Index include financials, utilities, energy, telecom, materials, industrials, consumer staples and consumer discretionary. As such, the Fund provides investors access to a broad range of countries in the very early stages of development—a market segment that may offer an attractive risk/return profile and a lower correlation to the developed and emerging markets. The expense cap for the Fund is 0.65%.
“Unlike more developed or emerging economies, frontier markets offer risk-tolerant investors a source of untapped economic potential,” said Steven A. Baffico, senior managing director and head of U.S. Retail for Claymore Securities, Inc. “Investors are recognizing the potential growth opportunities many of these markets currently offer, such as the early development of effective harvest and management of natural resources, advancing their sovereign balance sheets, trade surpluses, infrastructure expansion, rising per capita GDP and the corresponding growth of the consumer. FRN offers investors the benefit of accessing these investment themes.”
“Investors and managers continue to seek new ways to diversify their portfolios during these times of market uncertainty,” said Michael Cole-Fontayn, chief executive officer of BNY Mellon’s Depositary Receipts group. “It wasn’t so long ago that people considered Brazil, Russia, India and China as ‘frontier markets’. Over the past 10 years, we’ve seen those countries become major drivers of global economic growth.”