In yet another sign of the exchange traded fund (ETF) times, Claymore could be converting a closed-end fund (CEF) into an ETF.

The board of trustees approved the conversion of the Claymore/Raymond James SB-1 Equity Fund (RYJ). The board feels that the fund in an ETF incarnation could benefit shareholders by continuing to provide the liquidity while potentially reducing the discount from the net asset value (NAV).

It’s not quite a done deal yet, though: the fund will be reorganized and subject to approval by its shareholders. It’s expected that the proposal to convert the fund to an ETF will be submitted at the 2008 annual meeting later this year.

A more detailed description of exactly how the fund will convert to an ETF can be obtained at the Securities and Exchange Commission’s (SEC) website.