Yesterday Claymore Securities launched the first exchange traded fund(ETF) based on the Sudan divestment issue on the American Stock Exchange. This socially responsible ETF is the Claymore/KLD Sudan Free Large-Cap Core ETF (KSF) that tracks the KLD Large-Cap Sudan Free Social Index, according to the press release. Claymore is the first to offer an ETF based on an index with a Sudan-free mandate in the methodology. Citizens concerned about the crisis in Darfur have worked toward legislature and mandates to eliminate corporate support of Sudan’s current regime. To be part of the KLD index, business involvement is screened for:
- Owns or controls business or property in Sudan
- Has employees or facilities in Sudan
- Provides goods or services to companies domiciled in Sudan
- Obtains goods/services from Sudan
- Has distribution agreements with companies domiciled in Sudan
- Issues credits or loans to companies domiciled in Sudan
- Purchases goods or commercial paper issued by the government of Sudan
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.