Claymore’s Acquisition Could Signal a New ETF Industry Trend
August 9th at 1:00am by Tom Lydon
Is there such a thing as “open season” for exchange traded fund(ETF) providers?
Last Friday, Claymore Securities announced that they had reached a deal with Guggenheim. The deal would allow Guggenheim to acquire the ETF providers’ lineup. Hannah Glover for Ignites reports that the deal is anticipated to close by the end of the third quarter, however, the terms and requirements are top secret.
Analysts believe that Guggenheim was attracted to Claymore’s ETF lineup, since the ETF industry has so much growth potential. In June, ETFs had $590.3 billion in assets, according to the ICI. Claymore’s 34 ETFs represented about $1.7 billion at the end of June.
Firms on the acquisition end of the business spectrum are likely to seek these investment products more frequently.
Analysts believe that consolidation among ETF providers is going to take place more frequently, as the industry has become top-heavy. Three providers represent more than 77% of the total market share.
