Claymore Investments launched the first ETF (exchange traded fund) of ETFs today in Canada. Claymore Global Balanced Income and the Claymore Global Balanced Growth are made up of about 13 ETFs and focus on balanced portfolios giving investors the option to buy one product and access multiple asset classes giving exposure to fixed-income, equity, real estate commodities, and other sectors, according to Richard Kang of The Beta Brief.
We spoke with someone at Claymore in Canada about the ETFs and were told the ETFs will use Claymore and Barclay products, as these are the two ETF providers on the Toronto Exchange. Fees are 0.7% and this includes costs of ETFs managed, they say there will be no duplication in fees. The reason for the launch in Canada is because they see a lot of growth in fund of funds there, with about 60% of mutual fund flows go into these fund of funds.
It is likely that we will see a similar product here in the U.S., especially if Claymore finds success in Canada – although Claymore could not confirm with us if they were already in the planning process.