Insider Buying For A Claymore ETF
December 13th at 7:58am by Tom Lydon
An exchange traded fund (ETF) that tracks an index of stocks with predominant insider buying sounds like a smart idea. Claymore/Sabrient Insider (NFO) is the first ETF that utilizes this theory. This is one of the first ETFs sponsored by Claymore that launched in September.
Insiders can be directors or those who own at least 10% of shares. Sabrient Systems created the 100-stock insider sentiment index based on data from public filings from corporate insiders, Trang Ho of Investors Business Daily reveals. The portfolio is equally weighted and re-balances every quarter.
Since owners sell shares for many reasons, insider selling is not considered predictive of performance as buying. Insiders are valuable because they know their company, and understand future prospects, regarding products, services or competitors.
